Japan’s cabinet Tuesday approved a bill to assist corporations in developing secure 5G mobile networks and drone technologies amid rising alarm among Tokyo policymakers over the increasing influence of China’s 5G technology.
The bill will give corporations that develop such technologies access to low-rates of interest loans from authorities-affiliated financial institutions if their plans fulfill requirements on cyber-security.
Corporations that undertake 5G technologies can also get tax incentives in the event that they meet standards set by the federal government, based on the bill.
The federal government will submit the bill to the parliament and intends to bring it to effect around summer.
The U.S. has been conducting a campaign against Huawei Technologies, which Washington has warned may spy on customers for Beijing.
Huawei has repeatedly rejected those claims.
The U.S. and a few allies, along with Australia, have barred Huawei out of 5G rollout plans, while others like Britain have allowed it a limited role.
In December 2019, Japan revealed tax measures aimed toward encouraging corporations to spend their cash piles on startups and different investments and stimulating a slowing economy, while serving to companies to compete with China’s progress in 5G technology.
