Type to search

Japanese Firms Gloomy on China’s 2024 Economic Prospects

About three-quarters of the 1,700 Japanese firms in China said in a survey they expected the Chinese economy to worsen or to remain the same this year

Japanese PM Fumio Kishida meets Chinese President Xi Jinping at the APEC Summit in Bangkok, November 2022 (Kyodo via Reuters).


Japanese firms in China lack confidence about economic prospects in the world’s second-largest economy and believe the outlook for this year is still dismal.

That feedback comes from a report by the Japanese Chamber of Commerce and Industry in China, which was released on Monday (Jan 15).

About three-quarters of the 1,700 respondents in a survey said they expected the Chinese economy to worsen or to remain the same.


ALSO SEE: China’s Military, AI Bodies Still Buying Nvidia Chips Despite US Ban


China is Japan’s largest trading partner, and one of the biggest investment destinations for Japanese companies.


Nearly half cut investment, concern on new laws

Uncertainty about China’s economic prospects and pessimism about weak demand were cited as top reasons why 48% of the companies surveyed said they did not invest in China or reduced their investment in 2023 compared to a year earlier.

The companies also said they were concerned how Chinese laws on espionage and cross-border data flows would play out.

A month before China amended the anti-espionage law last April and broadened its definition of spying, it had detained a Japanese businessman suspected of spying.

Despite the poor prospects and difficult operating environment, half of the companies surveyed still thought China was the most important market globally or among the top three most important in 2024.

Improvements in the Chinese business environment the companies hoped to see included fewer visa restrictions for Japanese citizens and lower labour costs, according to the report.


  • Reuters with additional editing by Jim Pollard




Kishida-Xi Talks May Touch on Arrests Killing Bilateral Business


Fears of China’s ‘Japanization’ Weigh On Asia Economic Outlook


Japan Seen Provoking China With Taiwan Security Ties Upgrade


Japan Sees Big Blow From Hong Kong Ban on Most of its Seafood


Japan Signals It Would Aid Taiwan if China Attacked – Telegraph


Japan Joins Chip Curbs on China, Despite Unease in Tokyo


US, Japan Chips Alliance Aims to Thwart China Ambitions


Japan Megabanks Sounded Out Over China Exposure Risks


Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


AF China Bond