According to foreign media reports, more and more Japanese companies operating in China are withdrawing their business from China, and Japanese companies ‘capital investment in subsidiaries in China has declined for the seventh consecutive quarter.
Reported that as competition in the China market intensifies, Japanese automakers have begun to withdraw their business from China, which has also had a major impact on the auto parts supply chain.
According to a survey and analysis by Japan’s Ministry of Economy, Trade and Industry (METI), in the second quarter of this year (April to June), Japanese companies ‘investment in China (including Hong Kong) fell by 16% year-on-year.
Falling investment has posed huge challenges for Japanese automakers.
Since the beginning of 2023, quarterly revenue of subsidiaries of the Japanese transportation equipment industry in China has dropped by more than 20% year-on-year.
, METI’s survey covered approximately 5,300 overseas subsidiaries in which Japanese companies hold no less than 50%.
It is reported that the current share of Japanese companies ‘investment in China in their total overseas investment is 13.
6%, which is lower than the share of Europe.
Compared with the second quarter of 2019, investment in Japanese subsidiaries in China fell by 5 percentage points in the second quarter of this year.
However, the report pointed out that China is still Japan’s second largest exporter and largest importer.
In June this year, Nissan closed a factory in Changzhou, which has an annual production capacity of 130,000 vehicles, accounting for 10% of Nissan’s total production in China.
At the same time, Nissan Motor is also considering reducing production capacity at other factories in China.
Photo source: Nissan Motor, Similarly, in July this year, Honda Motor announced that it would close one of its factories in Guangdong Province and suspend production at another factory in Hubei Province.
These measures have also affected companies in areas such as auto parts and materials production.
, At the same time, Japanese materials maker Nippon Steel decided to withdraw from its joint venture with China Baoshan Iron and Steel Co.
The move is expected to reduce Japan Steel’s local production capacity in China by 70%.
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