A survey of 1,700 respondents conducted by the Japanese Chamber of Commerce and Industry in China found that Japanese companies operating in China expect China's economic prospects to remain gloomy in 2024. Overall, about 75% of respondents said that China's economy (Japan's largest trading partner) is likely to deteriorate or remain unchanged this year.
48% of respondents reported that they did not invest in China last year or reduced their investments compared to 2022, citing the country's uncertain economic prospects and pessimism about weak demand. Japanese companies have also expressed concerns about the impact of Chinese laws on espionage and cross-border data flows.
However, 50% of respondents said that in 2024 China will still be the most important market in the world or will be in the top three of this list, despite the poor prospects and difficult operating environment.