Abe sees China's 5G lead as 'economic security' threat

Prime minister personally lobbies for bigger tax breaks

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The Japanese parliament building in central Tokyo: Sensing Prime Minister Shinzo Abe's conviction, the ruling party agreed to broaden tax breaks for 5G investment to 15%. (Photo by Uichiro Kasai)

GAKU SHIMADA, Nikkei staff writer

TOKYO -- When Japan's tax guru Akira Amari phoned Prime Minister Shinzo Abe on Monday to inform him that the ruling party's powerful tax research commission had agreed to offer a generous 9% tax break to telecommunications companies investing in 5G infrastructure, the leader was not impressed.

"Nine percent is not enough," Abe told his close aide.  "I want you to revisit the issue not just as a tax problem, but from the perspective of economic national security."

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