Select Page

When considering the state of Japan–China relations, much attention has been paid to fluctuations in the bilateral economic relationship. Given the political insecurities of East Asia — with tensions on the Korean peninsula, ambiguous US policy intentions and the Senkaku Islands territorial dispute — it is timely to take a look at how business relations between the two nations are faring.

On the one hand, there are signs that the economic relationship between the two countries could furtherimprove. In commemoration of the 45th anniversary of normalisation of ties and the 40th anniversary of the signing of the Treaty of Peace and Friendship between Japan and China, in April 2017 the Japan Business Federation and the Japan-China Friendship Association, among others, established an ‘Exchange Promotion Executive Committee’. It is anticipated that the Committee will promote greater economic ties between the two countries and improve the business performance of Japanese corporations already operating in China.

As of October 2016, there were 32,313 Japanese firms operating in China. This is half of the 71,820 total Japanese firms that have expanded overseas, and far exceeds that of the United States, which has the second largest number of foreign firms in China at 8422. Approximately 80 per cent of Japanese firms in China have reported that they are making a profit, with 25.8 per cent stating that they are more profitable in China than in Japan. Read more

When considering the state of Japan–China relations, much attention has been paid to fluctuations in the bilateral economic relationship. Given the political insecurities of East Asia — with tensions on the Korean peninsula, ambiguous US policy intentions and the Senkaku Islands territorial dispute — it is timely to take a look at how business relations between the two nations are faring.

On the one hand, there are signs that the economic relationship between the two countries could furtherimprove. In commemoration of the 45th anniversary of normalisation of ties and the 40th anniversary of the signing of the Treaty of Peace and Friendship between Japan and China, in April 2017 the Japan Business Federation and the Japan-China Friendship Association, among others, established an ‘Exchange Promotion Executive Committee’. It is anticipated that the Committee will promote greater economic ties between the two countries and improve the business performance of Japanese corporations already operating in China.

As of October 2016, there were 32,313 Japanese firms operating in China. This is half of the 71,820 total Japanese firms that have expanded overseas, and far exceeds that of the United States, which has the second largest number of foreign firms in China at 8422. Approximately 80 per cent of Japanese firms in China have reported that they are making a profit, with 25.8 per cent stating that they are more profitable in China than in Japan.