Key Facts
• Survey by Japan Chamber of Commerce in China received responses from 1,400 companies.
• 48% of companies foresee China’s economy worsening compared to last year.
• Economic decline observed from January to June 2025, compared to the previous quarter.
• Non-durable goods sector and Shanghai region show signs of improvement.
• 4% increase in companies predicting economic decline compared to the previous survey.
• Companies cite intense price competition and inability to invest due to low profits.
• Incidents of Japanese nationals being attacked or detained in China raise safety concerns.
• Japan Chamber of Commerce urges governments to ensure expatriates’ long-term safety.
• Chairman Tetsuro Honma calls for clear legal guidance from both governments.
Summary
A recent survey by the Japan Chamber of Commerce in China reveals that nearly half of Japanese companies operating in China expect the economy to worsen in 2025 compared to the previous year. The survey, which gathered responses from 1,400 companies, highlights a 4% increase in pessimistic outlooks since the last poll, with 48% predicting economic decline. While some sectors, such as non-durable goods, and regions like Shanghai show improvement, overall economic conditions remain challenging. Companies report difficulties in generating profits due to fierce price competition, limiting their ability to invest. Additionally, safety concerns for Japanese expatriates have grown following incidents of attacks and detentions. The Japan Chamber of Commerce is urging both Japanese and Chinese governments to provide clear legal guidance and ensure the safety of expatriates. Chairman Tetsuro Honma emphasized the need for unified action between governments and diplomatic entities to address these issues.
