business

China losing luster for Japanese companies: survey

16 Comments

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The money 's thirsty Japanese companies should see this train wreck is coming. They feed the hands who will bite them later. The sooner Japan cease this practice, they will see the new attitude from the bully communist China.

-1 ( +4 / -5 )

Besides the labor cost increase, the exchange rates between Yuan and Dollar has changed drastically in the last five years, making exports from China much more expensive.

0 ( +4 / -4 )

No one wants to do business with xenophobes who berate your country.

4 ( +7 / -3 )

Maybe companies should look at loss of intellectual property when doing business in China and some other countries. I you want to give away your trade secrets and let a competitor catch up in no time, keep making plants where labor is cheap but rights are low. Make those new factories and train those workers and in a few years, you may wonder why a rival was just up to take a majority of market share. And remember to keep things cheap even if it means sacrificing quality, and see more loss of market share.

8 ( +9 / -1 )

We just got free investing advise. Put your cake in Indonesia.

0 ( +2 / -2 )

Majority of the time, Chinese companies will try to renegotiate their contracts after they are inked is often true and one should be prepared for that. Chinese counter-party will try to change the terms of your arrangement. The contracts in China are unenforceable. Chinese companies know Japanese and Westerners believe Chinese courts will not enforce contracts and they oftentimes seek to take advantage of this by claiming their actions are the Chinese way. Chinese companies often claim their seeking to renegotiate their contract is how things are done in China, implying that the Japanese and Western company has absolutely no choice but to go along.

1 ( +4 / -3 )

They misjudge the content of characters of Chinese and only one dictatorship ruling communist party that control China.

-4 ( +1 / -5 )

Where else can Japan tap such a large growing market? Japanese companies have nowhere else to go.

0 ( +0 / -0 )

The developed world is always looking for countries with cheap labour and resources to maintain their profits, but forget that when those same countries develop themselves, those profits are eroded, and they have to look elsewhere. At the same time, those countries grow and become consumers of such products.

In the long run, it may be cheaper to return home, and regain the craftsmanship and care that a generation of outsourcing has lost, and the real cost of overseas investment, technology transfer and loss, disruption of expat lives and families becomes known. But the down side is that those countries will not develop so quickly into potential customers… a challenging conundrum.

3 ( +4 / -1 )

China is losing its luster for business and countries since they have never competed fairly.

Still, UK PM Cameron is in China this week to propose free trade agreements between the EU and China. To me, that seems stupid when countries should be getting out of China for not playing fairly.

The U.S. made that mistake in 2001 when the allowed China into the WTO. Since then, China has been dumping products and stealing from the U.S. at an ever increasing pace.

3 ( +4 / -1 )

The billion dollar question is why did it take so freaking long ?!

Last time I checked when you invested in a factory China you had not claim on the land as you were renting from the CCP. De facto everything is nationalized.

You then of course run the risk of having your intellectual property stolen as playing fair is not in the vocabulary of Chinese hustlers.

And finally since international patterns are not recognized in China (hence the fake impression that China is one of the top nation for registering new patents when it is mainly registering existing patterns from abroad), you have no possibility of recourse to justice.

So in terms of risk/reward....nah! I'd say better countries to invest all together are legion.

0 ( +2 / -2 )

Why.....? Japan has sent so much technology over to China and they learned alot due to the Japanese companies there and this is how China shows their thanks. I guess that is what Japan deserves for bringing a country into the 21century.

0 ( +1 / -1 )

beer4me If China has asked japan to compensate the damage by japanese army in China during WWII, japan will have been long bankrupted.

-1 ( +1 / -2 )

Time to move production to more attractive markets, even back-shoring. Let china implode on its communism.

-1 ( +0 / -1 )

I have boycotted China for the past five years - no sign of lifting that anytime soon.

-1 ( +0 / -1 )

I can't believe some Japanese companies are still attracting to business opportunity in Communist China in such as bad situation between two countries. Their greed will be punished for them one day. I do not know how Japanese businessmen show their face in hostile environment. If their No.1 priority is money and then in the future they shouldn’t regret whatever happened to their investment in China. They shouldn’t ask Government for help.

New China free trade zone is just a fraud. It’s not free. Communist Government will intervene and meddle anytime after foreign investment was rolling in.

0 ( +0 / -0 )

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