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Abe’s Ex-Rival Wins Partial Victory in Fight Over Tokyo Shutdown

Japan’s Abe Puts Brakes on Ex-Rival’s Call to Shut Businesses

(Bloomberg) --

Tokyo Governor Yuriko Koike unveiled a list of businesses that will be asked to close from Saturday, in a bid to control the accelerating spread of the coronavirus under new emergency measures.

Pachinko parlors, game centers and internet cafes in the Japanese capital will be asked to close, but “izakaya” pubs providing food and drink will be able to operate, albeit only until 8 p.m., Koike said Friday. Confirmed cases in the capital tripled in 10 days to top 1,500, raising worries Tokyo could be the next global center to see an overwhelming surge in cases.

The measures, which carry no penalties for noncompliance, represent a partial victory for Koike over Prime Minister Shinzo Abe’s administration, which had sought to put off any closure requests for two weeks.

“There’s no way we could wait,” Koike told reporters in Tokyo. “This is a matter that affects the lives of Tokyo residents, and I am getting reports every day of the strains on the health care system.”

The central government this week declared a month-long emergency in Tokyo and six other prefectures representing about half of Japan’s economy, deepening fears that even with a record stimulus package, the economy could be heading toward a record contraction of 25% this quarter. Other regions including Aichi and Kyoto prefectures are seeking to be added to the list.

Abe’s Ex-Rival Wins Partial Victory in Fight Over Tokyo Shutdown

Firms will be eligible for 500,000 yen ($4,600) in compensation for closing a business and 1 million yen for multiple businesses. Koike said children’s daycare centers will remain open, as will supermarkets and convenience stores, and there are no restrictions on shopping for essentials and medicine. Public transit will continue to operate as normal.

Koike had pushed Abe to make the emergency declaration, sparking a rare public clash between the central government and the leader of the country’s biggest metropolitan area. Still, their spat has been far less hostile than similar rivalries in the U.S., where President Donald Trump has disparaged governors in virus-hit states such as Michigan, New York and Washington for criticizing his administration’s handling of the outbreak.

Economic Hit

Abe said Japan was facing its worst economic crisis since the aftermath of World War Two when he declared the emergency and made an emotional appeal for people to stay home. The move handed powers to local governors, including allowing them to ask certain businesses to close temporarily.

While the sharp increase in infections sparked fears of a crisis like that seen in the U.S. and parts of Europe, Japan has so far fared better than most developed countries and has the fewest confirmed cases among the Group of Seven leading democracies.

Koike has warned a “lockdown” similar to those in some European cities might become necessary. By contrast, Abe has repeatedly said Japan has nothing in its legal armory to allow such stringent measures, and even blamed his delayed emergency declaration on the need to dispel the misunderstanding.

Masayoshi Son, founder of SoftBank Group Corp., took to Twitter to blast the Japanese government’s response to the coronavirus outbreak, adding to criticism as the country tries to deal with a recent surge in infections.

About 70% of respondents to a Mainichi newspaper poll said the emergency declaration had come too late and 58% said it should have included a larger proportion of the country.

Koike and Abe have dominated headlines during the pandemic, working together to keep Tokyo as the host city for the 2020 Olympics and reluctantly arranging an unprecedented one-year postponement to move the games to 2021.

©2020 Bloomberg L.P.