German Business Requesting Japan to Lift Entry Ban
- 78% of German companies in Japan significantly burdened.
- Travel restrictions should be lifted in Japan’s own interest.
German companies in Japan are heavily impacted by the entry ban into Japan imposed on foreign nationals. According to a recent survey conducted by the German Chamber of Commerce in Japan, 78% of the companies regard the entry ban into Japan as a significant burden for their businesses. In addition, 79% of the affected German companies in Japan see their turnover endangered as ongoing projects cannot be completed and new projects cannot be initiated.
More than one third (39%) of the affected German companies expect a loss in revenue solely due to the entry ban imposed by Japan on most European countries, including Germany. This ban has been in place since March 2020 in response to the COVID-19 pandemic. Travel restrictions continue despite Japan having lifted its national state of emergency at the end of May. The entry ban includes foreign nationals with permanent resident status in Japan and long-term visa holders working in Japan, including their spouses and families.
Concerns voiced in the survey indicate that the entry ban has become a burden not only for German companies in Japan, but for the Japanese business community as well. The two economies are so closely interlinked that the ability to bring in experts from Germany is essential to support Japanese business partners in their manufacturing. With the entry ban enforced, Japanese customers who rely on German machinery for smooth production are increasingly at risk.
The entry ban also heavily impacts business with other Asian countries. The survey indicates that 47% of German companies in Japan have their regional headquarter functions negatively affected. Japan is the third most important location for German regional headquarters in the Asia-Pacific region. If travel restrictions continue, Japan’s role as a hub for international business in East Asia comes into question.
For the foreign business community, the entry ban continues to cause significant business disruptions including revenue losses and increased costs. According to the survey, 27% of the affected German companies expect some action by the Government of Japan to compensate for additional costs caused by the entry ban including tax relief measures.
“If Japan fails to reopen its border in a responsible manner, it will impact the recovery of the Japanese economy going forward.”, said Marcus Schuermann, Delegate of German Industry and Commerce in Japan and CEO of the German Chamber of Commerce and Industry in Japan. “The Government of Japan invests so much money into the support of its economy, why does Japan not do as much to safely reopen its borders?”
While containment measures are gradually being lifted domestically, the path towards reopening Japan to the global economy remains unclear. “While protecting one’s own country is a matter of course and certainly respected, we request that the Japanese Government takes steps to safely reopen its border to foreign visitors. Foreign businesses need a reliable timeline in order for them to plan important projects, make essential customer visits and dispatch experts and executives, including their spouses and families”, said Marcus Schuermann.
The survey by the German Chamber of Commerce and Industry in Japan was conducted from June 3-5, 2020 with 383 German companies in Japan. The response rate was 25%.
For further details and survey results, please visit:
Result of the Corona Flashsurvey #4
Contact for the Press
Communications
German Chamber of Commerce and Industry in Japan (AHK Japan)
Tel.: +81(0)3 5276 8741
Email: press(at)dihkj.or.jp