Japanese firms may face rocky road ahead on China's policies

Why would any country wish to do business in an autocratic soulless state such as China?

Even though news reported on May that many Japanese companies were unwilling to leave China, many facts regarding the future of China would influence them to leave the communist state of China eventually.

Those China's fans would argue that it would be impossible to happen because China is the biggest market for foreign companies; however, when we analyze China by itself we note that it is not as easy and simple as many think.

China has a lot of problems: Environmental issues, Social Security, Bad relationship with her neighbors, Unemployment Rate, etc...

The Chinese government has the goal to cut greenhouse gas emission in 2060, but in order to do it there is a need to high investment on it and cooperation from citizens and foreign and national corporation. Companies need to invest on new machines and new technology; things that they are unwilling to do because they would loose a lot of money.

China is facing the increasing number of elderly people and fertility rate also is the problem(things that is very common in the whole world). In case of China, the young one's are also immigrating to other nations in mass according to the survey that was made some years ago that concluded that 70% of all Chinese student in US was not willing to go back to China. It is a very concerning thing.

Bad relationship with neighbors is not a good thing and it never was good. It affects business relationship that will affect the economy as well. If investment is not being made, those local companies will have hard time to deal with their business and it leads to unemployment. If people are unemployed, they don't have money, and without money they cannot afford to buy car, new computers, etc...If the number of consumers is low, foreigner companies that provide those goods will not have profit and no profit will result on trouble for them. That is why I'm saying that foreigner companies leaving China for completely will occur eventually.

Mitsuo Matsuyama said "Bad relationship with neighbors is not a good thing and it never was good....That is why I'm saying that foreigner companies leaving China for completely will occur eventually."

*Hahaha, if allow Japanese business in China is bad policy with neighbor, then what is good policy ? **colonize Japan ?*

Unthankful people are ungracious people. Both are unappreciative.

Akie, you certainly knows what is the meaning of "bad relationship". Today none of the countries in Southeast Asia trust on China and relationship with Japan was never fully good. In order to this relationship turn to be good, China needs to stop bulling her neighbors that are allied with Japan and respect their territories and boundaries; things that we know it will never happen because China is greed and prideful.

These Japanese firms should not be doing business in Communist China, eco-friendly or not.

JETRO said five of the 233 Japanese manufacturers have already started to consider transferring their factories or parts of them to other nations amid mounting concern over the future.

Shameful that just a few Japanese companies are even thinking about leaving China. All the remaining companies should have their overseas profits taxed into the ground by the Japanese government.

Fighto

Actually this number( 233) is just one of them. Eventually those other companies will follow the same step. In fact more companies have leaved China since the beginning of this decade. Just remember that some years ago China had an anti-Japanese movement that caused Panasonic to leave that country.

With higher labor cost and strict demands mentioned here in Japan Today about Enviromental issues, foreigner companies will find itself hard to keep their production in China.

sources: https://www.japantimes.co.jp/news/2015/01/31/business/corporate-business/panasonic-close-china-tv-factory/

Akie, you certainly knows what is the meaning of "bad relationship". Today none of the countries in Southeast Asia trust on China and relationship with Japan was never fully good.

I disagree. Most South East Asian countries would very much like to be in a wonderful relationship with China. But if they do that they will be threatened, sanctioned and bankrupted by the bully in the house. And the bully has 160 military bases around the world and a military budget bigger than the next 5 nations.

the problem with japan and neighbors is people who visit Yasukuni Shrine.

Am I the only one who read in this article that Japanese companies are thinking of leaving China because they consider their pollution controls too restrictive and too expensive to comply with? Apparently eco-friendly only goes so far.

Goodlucktoyou - I respect your opinion but, if you ignore the facts that nobody trusts on China, your argument loose all credibility.

Bad relationship with neighbors is not a good thing and it never was good. It affects business relationship that will affect the economy as well. 

Japan an island country which has only four neighboring countries, but it has territorial disputes and deep hatred from all four neighboring countries. Now a Japanese is talking about the disadvantages of “bad relations” you really are the right person haha

ning1983 - Your knowledge about this topic is way limited. Contrary to China, most Asian nations supports Japan(Vietnam, Mongolia, Taiwan, Singapore, The Philippines, Malaysia, etc...). Now, what country respect China? Tell me. What country trust on China? Tell me.

Why would any country wish to do business in an autocratic soulless state such as China?

Cheap, zero human rights prison slave labors. Massive hard assets wealth per capita plus hardcore crazy consumerism. Highly profitable subsidies for foreign corporations if the foreigners obey, re-invest locally, and give a cut to the ruling Party.

People often use the huge population as the reason for China’s able to make all Western corporations kowtowing at the CCP. This isn’t quite true because India does not see a huge rise like China.

Another outlier from China is Vietnam, which we see both Facebook/Google and South Korean/Japanese corporations do not give a damn about Vietnamese authoritarianism.

https://www.latimes.com/world-nation/story/2020-10-22/facebook-censorship-suppress-dissent-vietnam

Vietnam emulates and improved upon the Chinese model. They don’t have a billion people but they have an actively consumerist culture, cheap labor (not prison slavery like China, yet) and flexible policies of rewards and punishments against FDI businesses. They also have stashed quite a massive wealth from the underworld businesses, second to China.

https://asia.nikkei.com/Politics/International-relations/US-probes-whether-Vietnam-undervalues-its-currency

The perfect example is the lumber industry which Vietnamese underworld lords, affiliated with the VCP, benefits so much that the USA now deems the Vietnamese lumberjack thieves as a major economic threat - Vietnamese lumberjack thieves disrupted and dominated the global supply of lumbers through plundering the forests from Myanmar to Laos and Cambodia, and they are currently involved with the Amazon fiasco as well. However, it’s unlikely that the USTR will pursue any further because the Pentagon and State Department are backing Vietnamese government against China. For the sake of geopolitics, the USA will let Vietnamese organized crimes sliding for now.

Again, the USA will put aside any difference with authoritarian regimes to achieve political goals. China isn’t the only case, and I am not even getting into India yet.

China is not that bad as some posters says here. businessmen is clever and wise to sense where is friendly to their business and where to profit. so just learn from the businessmen whose action tell everything and will not cheat you. China may cheat you for 1-3 times, but never always cheat you unless yourself is a pure and absolute fool.nobody can save a real fool!