Thursday, October 3, 2024
HomeBusinessJapanese companies are disappointed with China after years of ignoring risks

Japanese companies are disappointed with China after years of ignoring risks

Japanese companies are increasingly abandoning a way of doing business in China that once seemed immune to politics, a marked change after years in which they were the biggest investors in their neighbor’s economy.

In an era of geopolitical risks and concerns about Chinaโ€™s faltering growth, the economic math is no longer adding up for companies like Nippon Steel, which said in July it was exiting its joint venture in China. Mitsubishi Motors last year indefinitely suspended its local operations, citing falling auto sales and Chinaโ€™s rapid shift to electric vehicles.

Nearly half of Japanese companies in China surveyed in a recent study said they would not increase spending or cut investment this year. Companies cited rising wages, falling prices and geopolitics as the biggest issues they faced.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments

Translate ยป