More than half of the Japanese companies operating in China plan to maintain or increase their investment there this year, according to a survey conducted by the Japanese Chamber of Commerce and Industry cited by Yicai Global. The findings signal steady business confidence even as Tokyo tightens technology-related restrictions amid broader friction with Beijing.
The survey, released last week, found that 59 percent of respondents expected to either maintain or raise investment levels in 2026 – up from 56 percent a year earlier. The poll was carried out between 8 and 23 January, and drew 1,427 valid responses from roughly 8,000 companies contacted.
The findings come as Japan moves to strengthen oversight of sensitive technology transfers to China, including plans to establish a screening body similar to the US Committee on Foreign Investment. Beijing, meanwhile, has banned the export of unspecified “dual-use” items (goods that can be used for civilian or military purposes) to Japan in the wake of controversial comments made by Japanese Prime Minister Sanae Takaichi suggesting her country could become militarily involved in conflict regarding Taiwan.
Since November’s stand-off with Takaichi, Beijing has also suspended Japanese seafood imports, scaled back Japanese films and concerts, and urged citizens to avoid visiting the neighbouring island nation.
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According to Chen Zilei, president of the Shanghai Japan Society, Japan’s expanding “economic security” policy — introduced in 2023 to curb strategic dependence on China — will be prompting some Japanese firms to adopt a more cautious stance, even as overall commercial relations appear to remain resilient.
Several large Japanese manufacturers have stepped up investment in China over the past year, including Toyota Motor, Nidec, Asahi Kasei, Daiichi Sankyo and Mitsubishi Electric, Yicai reported. Financial services firms are also positioning for deeper engagement. Mizuho Securities established a subsidiary in Beijing in January, seeking opportunities in cross-border bond underwriting and investment matchmaking between Chinese and Japanese companies.
About 35 percent of firms surveyed by the Japanese Chamber of Commerce and Industry reported higher China revenues in the second half of last year compared with the first half, up from 28 percent in the previous survey. The share reporting profit growth also rose, to 35 percent from 31 percent.
Trade data underlines the scale of the bilateral relationship. Goods trade between China and Japan has exceeded US$300 billion for several consecutive years, rising 4.5 percent to US$322.2 billion last year. China remains Japan’s largest trading partner, with strong ties across sectors ranging from home appliances and batteries to semiconductor equipment and precision components.
