Half of Japanese companies invested in China anticipate its economy will deteriorate this year, with no plans to boost investment, according to a survey by the Japanese Chamber of Commerce and Industry in China. Of the 1,741 firms surveyed, 50% predict a worsening economy, up from 37% last year, while 34% expect conditions to remain the same, and only 15% foresee improvement. Despite China’s economy growing over 5% early this year, 44% of these companies plan to reduce their investments, and 40% will maintain current levels. This sentiment aligns with a 56% drop in overall foreign investment into China last quarter. Japan, a key investor, saw a 1.2% decrease in investment, marking a low since 2014.
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