Investments from Japan show uptrend

Japan's surging investments in China over the first three quarters of 2025 highlight resilient economic ties between the two manufacturing powerhouses at a time of growing protectionism and global supply chain bottlenecks, analysts said.

China attracted 573.75 billion yuan ($80.68 billion) in foreign direct investment between January and September, with inflows from Japan soaring 55.5 percent year-on-year, data from the Ministry of Commerce showed.

Despite mounting global economic headwinds and uncertainties over the global trade situation, FDI in China rose 11.2 percent from a year earlier in September alone.

Gao Lingyun, a researcher at the Chinese Academy of Social Sciences' Institute of World Economics and Politics in Beijing, said Japan's expanding investments in China this year reflect a thaw in bilateral business ties, as companies from both sides seek stability amid mounting trade pressure from Washington.

"Facing similar tariff headwinds and supply chain risks, Japanese firms are deepening investment and technology collaboration in China to capture market opportunities and cushion against global uncertainty," Gao said.

A survey released by the Japanese Chamber of Commerce and Industry in China in August showed that more than half of responding Japanese firms plan to either increase or maintain their investments in China this year, while 54 percent view the country as their most important or one of their top three markets.

Japanese companies in China have continued to post strong investment returns, cementing the country's role as a key pillar of their global strategy. Their performance has been particularly strong in the manufacturing and services sectors in recent years, said Peng Bo, a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing.

Peng said China's combination of policy measures to stabilize foreign investment and the rapid expansion of green and artificial intelligence-driven industries will continue to create momentum for Japanese businesses.

For example, Marelli Holdings Co Ltd, a Saitama, Japan-headquartered multinational automotive parts manufacturer with more than 50 manufacturing facilities across the world, will expand its engineering team in China from 800 to 1,000 over the next three years.

"Many opportunities arise from Chinese automakers' rapid shift toward electrification and intelligence, especially in the form of software-defined vehicles, which are setting new benchmarks for speed, scale and innovation," said David Slump, the group's president and CEO.

"In addition to meeting the demand of the Chinese market, our plants in China have been exporting products to other markets, including Europe, Mexico and Southeast Asia," said Slump.

Confident in the long-term growth potential of China's premium passenger car tire market, Minoru Kuroki, managing director of Bridgestone (China) Investment Co Ltd, said China remains a key growth market under the Japanese tire maker's premium strategy.

He said Bridgestone, which operates two manufacturing bases in China, will continue to ramp up investment, upgrade its production facilities and drive innovation in products for new energy vehicles to better serve the country's fast-evolving automotive market.

Eager to expand their footprint in China and showcase their latest products and innovations, Japanese companies — including Panasonic Holdings Corp, Toyota Motor Corp, Toshiba Corp, Shiseido Co and Uniqlo Co — will take part in the eighth China International Import Expo in Shanghai next month, according to the Ministry of Commerce.

Takao Yagi, chairman and CEO of Toshiba (China) Co Ltd, an eight-time CIIE participant, said the grand event is far more than just a showcase for cutting-edge technology.

"This is a valuable platform for promoting high-level openness and cooperation," he said. "It enables us to connect more deeply with the Chinese market and create broader development opportunities for our innovations."

Four of Toshiba's products and solutions — semiconductor reference design center, AI-based disease prediction technology, smart vacuum circuit breakers and power distribution systems — will make their debut at this year's CIIE.

zhongnan@chinadaily.com.cn