Recently, there have been voices about Japanese companies speeding up their withdrawal from China, which has attracted widespread attention and discussion. However, when we dig deeper into this phenomenon, the data gives a different answer. This article will reveal the truth through detailed figures, explaining the actual situation of Japanese companies investing in China and the huge attractiveness of the Chinese market.
First, let's look at a set of data on China's overall attraction of foreign investment. In 2023, the number of newly established foreign-invested enterprises in China reached a staggering 53,766, an increase of 39% year-on-year7%。This figure not only shows the great attractiveness of the Chinese market, but also reflects the strong confidence of global investors in China's economic development prospects. The actual use of foreign capital has reached 11,339100 million yuan, the scale of investment in the forefront of history. Against the backdrop of a general decline in global cross-border direct investment, it is undoubtedly a remarkable achievement for China to maintain such a strong foreign investment attraction.
So, against this backdrop, what is the situation of Japanese companies investing in China? According to the data, 888 new foreign-funded enterprises were established in Japan in China last year, an increase of 7 percent year-on-year3%, becoming the third largest foreign investment country in China. This figure clearly shows that Japanese companies are not experiencing the so-called "accelerated departure from China". On the contrary, they remain optimistic about China's development prospects and are actively expanding their business in China.
To further confirm this, we can look at a more convincing set of data. According to a survey conducted by Japan's JETRO, up to 90% of Japanese companies want to expand their business in China or maintain the status quo. This proportion is undoubtedly very high, which fully demonstrates the importance and expectations of Japanese companies in the Chinese market. At the same time, a survey of 1,700 member companies conducted by the Japan Chamber of Commerce in China also showed that 88% of Japanese companies still regard China as an important market. These figures are undoubtedly a powerful refutation of the claim that Japanese companies are leaving China at an accelerated pace.
In fact, Japanese companies have been doing very well in the Chinese market. In the past five years, the rate of return on foreign direct investment in China has been about 9%, and the figure of Japanese companies in 2022 is as high as 18%. This means that for Japanese companies, the Chinese market returns are much higher than those in other markets. This is one of the important reasons why Japanese companies are willing to continue to invest and expand their business in China.
Of course, we cannot ignore the difficulties and challenges encountered by some Japanese companies in the process of operating in China. For example, factors such as rising labor costs and higher environmental protection requirements may have an impact on the operation of enterprises. However, the solution to these problems does not necessarily depend on leaving China. On the contrary, by strengthening technological innovation and improving production efficiency, Japanese companies can better respond to these challenges and achieve sustainable development.
In fact, many Japanese companies have recognized this and are actively seeking deeper cooperation with the Chinese market. They are well aware that China not only has a huge market size and consumption potential, but also continues to promote economic transformation and upgrading and high-quality development. This provides huge opportunities and space for Japanese companies to grow. Therefore, more and more Japanese companies choose to set up R&D centers, production bases and sales networks in China to better meet the needs of Chinese consumers and achieve win-win development.
In addition, China** has also been committed to providing a fairer, safer and more stable environment for foreign-funded enterprises. In recent years, China has continuously deepened reform and opening up, strengthened the rule of law, and optimized the business environment, providing a strong guarantee for foreign-funded enterprises to operate in China. At the same time, China has also actively promoted economic and trade cooperation with countries including Japan, strengthened the construction of bilateral and multilateral systems, and provided foreign-funded enterprises with broader development space and opportunities.
In summary, through detailed data analysis, we can clearly see that Japanese companies are not leaving China at an accelerated pace. On the contrary, they remain optimistic about China's development prospects and are actively expanding their business in China. The huge potential of the Chinese market and the continuous improvement of the business environment provide rare opportunities and space for Japanese companies to develop. Therefore, we have reason to believe that in the coming days, China-Japan economic and trade cooperation will continue to maintain a strong momentum of development and write more brilliant chapters.
Finally, I would like to say that cooperation is an important way to achieve mutual development, both for Chinese and Japanese companies. We should look at each other's development achievements and lessons learned with an open and inclusive mind, deepen cooperative relations and achieve win-win development on the basis of equality and mutual benefit. Only in this way can we collectively address global challenges and promote sustained prosperity for the world economy.