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Friday 21st of November 2008
June 10, 2005

Jetro finds Japanese reluctance to invest in China


by Brian Turner
Jetro finds Japanese reluctance to invest in China

A survey published Thursday by the Japan External Trade Organisation (Jetro) has found that only 54.8 percent of Japanese companies surveyed in May are planning to expand their operations in China.

Last December, 86 percent of companies said they would do so.

The drop-off in planned expansion is part of the fall-out of anti-Japan sentiment and demonstrations targeting Japanese business in China in April over issues such as Tokyo’s efforts to win a permanent seat on the United Nations Security Council and the publication of history textbooks in Japan that ere seen by China as not admitting Japan’s wartime aggression.

The two nations have also been involved in disagreements over energy rights and territorial claims and China has protested the plans of Japan’s prime minister to visit a war shrine seen as excessively nationalistic.

Of the 414 companies included in the survey, 7.5 percent said they would cancel or postpone planned projects in China and a further 5.6 percent said they were planning to downsize Chinese production or to shift production to other countries.

Just 9.7 percent of surveyed companies said that their business had already been hurt by the tensions between the two countries, but many more said that there could be effects in the future.

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