Japanese companies are reassessing their investment strategies in China, reflected in a recent survey where almost half indicated they would cut spending amid geopolitical tensions and economic downturn.
Robert Ward emphasized the shifting dynamics, noting, "We are now past Japan's peak economic engagement with China," highlighting it as a turning point in bilateral relationships conditioned by geopolitical issues.
The shift marks a significant change in over four decades of economic engagement, which began with Japan's development assistance to China, showcasing how 'hot business' is now impacted by 'cold politics.'
New foreign direct investment from Japan to China is stagnating, with the current volume at multi-year lows, indicating a severe turnaround from past robust investments.
#japan-china-relations #foreign-direct-investment #geopolitical-risks #economic-strategies #electric-vehicles-trends
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