Photo/Illutration Officials of the Japanese Chamber of Commerce and Industry in China speak at a news conference in Beijing on Jan. 15. (Akihiro Nishiyama)

Many Japanese companies with operations in China invested less there in 2023 or did not invest at all, though they still consider it an important market, a survey found.

The Japanese Chamber of Commerce and Industry in China on Jan. 15 released the results of a survey conducted in November and December to which 1,713 companies responded.

When asked about the amount invested in China in 2023, 25 percent of the companies said they had decreased the amount compared to 2022, while 23 percent said they would not invest there.

Among the reasons given were the stagnant economy and concerns about the enactment from July 2023 of a revised anti-spying law that gives Chinese authorities greater leeway to crack down on foreign companies.

But 38 percent of the companies said the amount invested in China would remain unchanged while a combined 15 percent said the amount would be either increased or greatly increased.

Regarding their forecast for the Chinese economy in 2024, a combined 39 percent said the economy would either worsen or somewhat worsen compared to 2023. Only a combined 25 percent said the economy would either improve or somewhat improve.

Regarding their positioning of the Chinese market beyond 2024, however, 26 percent of the companies said it would be the most important market, while another 25 percent said it would be one of the three most important markets.

Among the major issues facing their corporate environment, 65 percent of the companies cited an increase in personnel expenses. Many companies called for a resumption of visa-free trips to China by Japanese businesspeople as well.

The COVID-19 health scare led to the program’s suspension.

Related News