Japanese companies continue withdrawing capital from China
Trade Promotion Agency Japan ( JETRO ) also said the 2013, it now only 9.09 billion investment in China , down 33 % compared to 2012 and accounted for 6.8 % of total investment offshore of Japan in 2013.
Ding Yibing Professor in the Department of Economics , Jilin University ( China ) said the declining trend of investment from Japan has lasted 3 years .
Vice Chairman of the International Trade Association of China ( ITAC ) Li Tie says investors are influenced by the relationship between the two countries . ” The dispute around the Diaoyu Islands / Senkaku make the situation worse ,” Mr Li said .
Japanese investors had been attracted by the size and growth potential of the Chinese market . But recently forming an investment switch from the market to the world’s most populous countries of ASEAN .
JETRO data showed Japanese companies invested $ 22.8 billion in countries like Vietnam , Singapore , Thailand , Indonesia , Malaysia , Philippines in 2013 , up nearly 3 China – trade partners Japan ‘s largest trading .
According to Mr. Minoru Arahata , Director of JETRO Dalian branch , cost of land and labor are rising China that Japanese enterprises toward the market at a cheaper cost as Southeast Asia . Managing Director, JETRO , Masahito Tasuda that not only labor issue that political disagreements between the two countries is also a reason .
In 2012, China , Japan and South Korea signed an agreement to promote and protect investment between the three countries . This is the first legal instrument , is considered a cornerstone , facility towards free trade area ( FTA ) . The agreement goes into effect Monday 5/17/2014 .