This is an AI translated post.
60% of Japanese Companies Say China Market is Worsening, 3 Months of Decline… Visa Exemption Resumption Requests Surge
- Writing language: Korean
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Base country: Japan
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- Economy
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Summarized by durumis AI
- 60% of Japanese companies operating in China have responded that their future business outlook is “worsening” or “slightly worsening,” continuing a three-month decline.
- Specifically, due to the uncertainty of the Chinese economy and intensified price competition, 45% of companies have reported a decrease in investment size compared to the previous year or are suppressing investment.
- Japanese companies are requesting the resumption of visa exemption and re-entry, while also raising concerns about the Anti-Espionage Law and requesting strengthened safety measures for Japanese residents in China.
60% of Japanese companies that have entered the Chinese market responded that their future business outlook is "worsening" or "slightly worsening." This is the third consecutive month of decline.
The Japan-China Trade Council announced the results of its "Economic and Business Environment Perception Survey" for the April-June period on the 30th. This survey was conducted among approximately 8,000 Japanese companies operating in China, and 1,760 companies responded.
According to the survey results, 32% of respondents said their sales trends are "rising" or "slightly rising," an improvement of 12%p from the previous quarter. However, 44% of companies responded that their sales are "worsening" or "slightly worsening," nearly half of the respondents.
Regarding investment size this year, 40% of companies responded "same as the previous year," while 45% said "decrease compared to the previous year" or "no investment this year." There was no significant change from the previous quarter. However, there were many opinions that "the Chinese economy is uncertain," and some companies expressed concerns about "intensified price competition, leading to unclear profitability and forcing them to refrain from investment."
In particular, the percentage of companies that responded that the Chinese market outlook for this year is "worsening" or "slightly worsening" increased by 10%p from the previous quarter to 60%, marking a third consecutive month of decline.
In addition, while there were numerous requests to "resume visa-free re-entry," concerns about the anti-espionage law that makes it difficult for Japanese companies to conduct business trips continue, with requests to "clearly convey the details."
Furthermore, following the assault incident involving a Japanese parent and child in Suzhou, Jiangsu Province in June, there have been new calls for "enhanced safety measures" for Japanese residents in China.
