Japanese Firms’ Business Sentiment Worsens in China

Beijing, July 31 (Jiji Press)–Business sentiment among Japanese companies in China worsened in the first half of the year due mainly to strained relations between the two countries, a survey by the Japanese Chamber of Commerce and Industry in China showed Friday. The survey showed that 44 pct of companies said their business conditions worsened in the six months through June, up 7 percentage points from the second half of 2025, while 26 pct reported an improvement, down 2 points. Fifty-three pct of companies cited international affairs as a challenge, while many called for safety to be ensured for employees and their families. In November, Beijing strengthened its export controls against Japan in response to Prime Minister Sanae Takaichi’s remarks about a possible Taiwan conflict. Asked about areas in which Japanese companies are unfairly treated, customs procedures stood at 32 pct, up 8 points. Many firms struggle with stricter customs inspections that make it harder for them to procure rare earth minerals. Tetsuro Honma, head of the group and an adviser to Panasonic Holdings Corp., told a press conference that he is concerned that if Japan-China relations remain strained, companies will be forced to reconsider investment plans. The survey, conducted this month on about 8,000 companies, received answers from 1,364 firms, or 17 pct of the total. END [Copyright The Jiji Press, Ltd.]