Economy

Majority of Japanese-Affiliated Firms in China Cautious About Investing in China due to Economic Slowdown, JCCC Poll Says

Yomiuri Shimbun file photos
From left, The Japanese national flag, The Chinese national flag

By Fukutaro Yamashita / Yomiuri Shimbun Correspondent

21:00 JST, January 22, 2024

BEIJING — Half of Japanese-affiliated companies are either cautious or reluctant to invest in China, according to the Japanese Chamber Commerce and Industry in China’s recent survey on the economy and business environment in China.

About 1700 out of 8,000 companies that expanded their business to China responded to the questionnaire, which was conducted in November and December.

The survey results highlight the impact of China’s economic slowdown and the issue of Japanese nationals detained in the country.

On a question about investment in China in 2023, 23% of respondents said they did not invest, while 25% said they reduced their investment from 2022, together accounting for about half of the total responses. Meanwhile, 38% said they invested the same amount from the previous year, while 15% said they increased or significantly increased investment.

On the outlook of business in China, 44% answered it was worsening or slightly worsening, 45% said it stayed flat, and 11% saw it slightly improving or improving.

Regarding the business environment in China, 21% said they were not treated equally as Chinese companies, 73% said they were treated equally, and 5% said they were treated preferentially.