SOURCE / ECONOMY
Survey shows 67.3% Japanese CEOs expect negative impact from deteriorating Japan-China ties; businesses increasingly concerned after PM’s erroneous remarks: expert
Published: Dec 29, 2025 02:36 PM
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Nikkei on Sunday released a survey of 100 CEOs, which covers a topic related to China-Japan economic relations, showing that 67.3 percent of respondents said it has a "negative impact" or "somewhat negative impact" when asked about the impact of deteriorating Japan-China relations on their businesses, yet 85.6 percent of them indicated that they will not reconsider their China strategy. 

A Chinese expert said that the report showed that Japanese businesses are increasingly concerned over the negative impact of worsening bilateral ties caused by Japanese Prime Minister Sanae Takaichi's erroneous remarks regarding China's Taiwan.

According to Nikkei, the survey was conducted from December 2 to 22, targeting presidents of major Japanese enterprises, with responses received from 141 companies.

The survey includes topics such as the Japanese government's consideration of relaxing working-hour regulations, expectations for the Takaichi administration, the government's fiscal policy, and Japan-China economic and trade relations.

Following Takaichi's erroneous remarks regarding China's Taiwan, there has been a strong backlash from the Chinese side, with [Japanese] business leaders attempting to respond calmly, according to Nikkei.

When asked about the impact of deteriorating Japan-China relations on their companies, 67.3 percent of the executives said it has a "negative impact" or "somewhat negative impact," yet 85.6 percent indicated that they "will not reconsider" their China strategy, the survey showed.

"The inclusion of China-Japan economic and trade relations in the survey itself underscores its emphasis on the importance of bilateral economic ties. The results show the majority of respondents still maintain stable strategy toward the Chinese market," Xiang Haoyu, a distinguished research fellow at the China Institute of International Studies, told the Global Times on Monday.

Xiang said that the survey also showed that business are concerned over cooperation, which is vulnerable to changes in the overall bilateral relations. 

The survey also showed that 18.9 percent of respondents said they would "reconsider" or "consider reconsidering" business trips to China for their employees. One major manufacturing company said that it would "temporarily prohibit business travel" except in urgent cases. Shimizu Corporation President Tatsuya Niimura said the company primarily provide construction services to Japanese companies in China, so if Japanese firms' willingness to invest in equipment declines, it is concerned that the company's sales in China will also fall.

"This latest downturn in China-Japan relations was caused by Takaichi's erroneous remarks on China's Taiwan, eroding fundamental mutual trust on political and security issues and, consequently, dampening confidence in bilateral economic and trade cooperation. Economic engagement and investment require a favorable political climate and predictable outlook. Takaichi's erroneous remarks have severely strained ties, inevitably weakening the momentum and assurance for trade and business interactions between the two countries," Xiang noted.

Japanese businesses have also tried proactively to engage with the Chinese market. Kyodo News reported that Chairman of Japan-China Economic Association Kosei Shindo met with Chinese Ambassador to Japan Wu Jianghao in Tokyo on December 18, during which Shindo asked the Chinese side to accept a previously planned economic delegation visit to Beijing in January next year, while emphasizing the importance of continuing to develop economic exchanges between the two countries. 

The planned visit is set to be jointly organized with Keidanren (Japan Business Federation) and the Japan Chamber of Commerce and Industry. It has been reported that the delegation's scheduled visit to Beijing is planned to be hosted by the Japan-China Economic Association and is scheduled for January 20-23, 2026.

The Kyodo News report claimed that with only one month remaining before the visit, China has yet to provide a clear response, and there are growing concerns about the possibility of postponement or cancellation.

Previously on December 2, when asked whether China will arrange their visits, Chinese Foreign Ministry spokesperson Lin Jian said that he has noted relevant reports and also found that many visionary people in Japan are deeply concerned over the negative influence and grave consequences of Takaichi's erroneous remarks on Taiwan. 

"The Chinese side urges the Japanese side to do soul-searching, rectify its wrongdoings, retract Prime Minister Sanae Takaichi's erroneous remarks, stop harming the sentiments of the two peoples, take practical steps to honor its political commitments to China, and create necessary conditions for the normal exchanges between the two countries. We hope relevant Japanese organizations will play a more positive role in Japan," Lin said.