Japanese investment in China has decreased by 60%

Japanese investment in China has decreased by 60% over 10 years, prompting Japanese companies to review their trade strategies.

According to the South China Morning Post's February 14 report, Japanese investment in China has dropped by 60% over the past decade, mainly due to escalating tensions between the U.S. and China and increased competition from Chinese companies.

By 2024, Japanese investment reached 493.1 billion yen ($32 billion USD). While this is similar to the previous year, it shows a significant decline compared to ten years ago. Although China's economic slowdown and regulatory challenges have restricted foreign investment inflows, recent Chinese stimulus policies have raised optimism among Japanese companies. As a result, companies have planned to continue or increase investments in China through 2025.

It has been reported that Japan is now prioritizing investment in the United States, with its investment there more than doubling over the past decade.

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15/02/2025
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