Changing Trends in Japanese Direct Investment in China

Japanese direct investment in China in 2003 continued its strong growth, with a sharp 65% increase over the previous year. Japanese firms invested in more than 28,000 projects in China in 2003, with a total investment value of US$57.5 billion. Japanese investors have formed numerous holding companies and regional headquarters in Shanghai. In their minds, China was once a factory for the world, but is now the end market for many of their goods and services. With the promise of deregulation in the commercial sector this year, Japanese companies' modes of investment are rapidly changing.