Japanese Companies' Expansion in China Drops Below 30%

Economic slowdown, rising competition, and geopolitical tensions contribute to waning business interest.

Less than 30% of Japanese companies plan to expand operations in China, marking the first time this percentage has fallen so low.
Economic uncertainty, increasing competition, and geopolitical tension are cited as reasons for the decline in expansion plans.
Japanese auto sales in China have slumped, contributing to the downsizing of some firms.
Geopolitical risks are increasing, with recent events such as the arrest of a Japanese executive in China on suspicion of espionage and Japan's release of treated radioactive water from the Fukushima nuclear plant into the ocean.
Despite these tensions, Chinese President Xi Jinping and Japanese Prime Minister Fumio Kishida have pledged to pursue mutually beneficial relations.