A view of Lujiazui, Shanghai Photo: VCG

The Japanese Chamber of Commerce and Industry in China (JCCIC) released a survey on the business conditions and outlook of Japanese companies in China, showing an overall positive trend, with a majority of Japanese firms regarding China as a key market and planning to maintain or even expand their investment in 2026.

The latest report reflects Japanese companies' desire to continue investing in China, and the Japanese government should heed these voices and respond with concrete actions to improve China-Japan relations, which is the most effective way to genuinely safeguard Japan's own national interests, a Chinese expert said.

The latest results of the survey, with 1,427 valid responses, showed that the business conditions of member companies of the JCCIC from July to December 2025 improved slightly compared with the previous survey, which covered the first half of 2025. 

Regarding satisfaction with the business environment, 62 percent of the respondents in China reported being "very satisfied" or "satisfied," broadly consistent with the previous survey. Among the companies reporting high satisfaction, reasons included China's well-developed infrastructure for logistics and transportation, the ease of securing Japanese-speaking and IT talent, and the availability of necessary components domestically.

Regarding investment plans for 2026, 59 percent of member companies said they would "increase or maintain" investment, up 3 percentage points from the previous survey. Among those planning to "increase" investment, a noticeably more positive attitude was observed. Overall, Japanese companies operating in China appear to be showing signs of improvement in their business conditions, according to the chamber.

Masami Miyashita, general manager of the Japan-China Economic Association's Beijing Office, said at Tuesday's event that there is a clear trend of increasing investment in China among Japanese companies, many of which cited the need to strengthen production capacity and supply systems in response to expected growth in orders and market demand. 

The survey also showed that another key reason for increased investment is the need to maintain competitiveness in quality, functionality, and cost amid intensifying market competition through necessary equipment investment.

Also at Tuesday's event, Tetsuro Homma, president of the JCCIC and executive vice president of Panasonic Holdings Corp, told the Global Times that China, the world's second-largest economy and a sizable market, remains a key focus for Japanese businesses. "Over the past 30 years, Japanese companies investing in China have accumulated extensive organizational and operational capabilities," he said.

As this year is the first year of China's 15th Five-Year Plan (2026-30), which promotes new high-quality productive forces and further opening-up, the head of the Japan-China Chamber of Commerce said it offers opportunities that Japanese companies are eager to participate in.

Citing the latest survey, which showed more than half of Japanese companies still intend to invest, Homma noted that "this indicates that Japanese businesses have identified areas in which they can achieve sustainable growth, making the Chinese market still highly important for these companies."

China is an indispensable neighbor for Japan and its business community, Homma said. He cited official data showing that China accounts for the largest share of Japan's foreign trade, noting "this has made it possible for Japan to generate substantial profits from overseas trade."

However, Homma also expressed his concern about the "loss of sufficient dialogue" between the Japanese and Chinese governments due to deteriorating relations, according to a report from Kyodo News on Tuesday. 

The report also stated that the companies hope to separate politics from economics and minimize the impact on business activities.

"The latest report from the JCCIC directly reflects the voices of Japanese companies investing in China and engaging in bilateral economic and trade activities," Xiang Haoyu, a research fellow at the China Institute of International Studies, told the Global Times on Tuesday.

On a further note, Xiang said that "I believe the Japanese government should heed the call of the Japanese businesses and respond with concrete actions to improve China-Japan relations, as this is the proper way to genuinely safeguard Japan's national interests."