A view of Lujiazui, Shanghai Photo: VCG

The Japanese Chamber of Commerce and Industry in China (JCCIC) on Thursday released the White Paper on the Chinese Economy and Japanese Enterprises 2026 in Beijing, showing that a majority of Japanese firms plan to maintain their investment in China.

At the event, Tetsuro Homma, president of the JCCIC, said that the proportion of Japanese-funded enterprises in China choosing to stay committed to the Chinese market is as high as about 85 percent, demonstrating the firm determination of the vast majority of Japanese companies to deeply cultivate the Chinese market.

The report covered a period during which the US introduction of reciprocal tariff policies has triggered turmoil in the international trading system and amid worsening Japan-China relations after Japanese Prime Minister Sanae Takaichi's erroneous remarks on Taiwan question.

Even under such severe circumstances, Japanese enterprises still look forward to developing together with China, Homma noted.

Homma noted that, according to statistics, Japanese companies have more than 70,000 overseas branches worldwide, of which 30,000 are located in China. This shows that China has become a critically important business arena for Japanese-funded enterprises.

According to a survey by the Japan External Trade Organization, regarding the direction of business development over the next one to two years, 21.3 percent of Japanese-funded enterprises in China expressed willingness to "expand," while 64.3 percent said they plan to "maintain the status quo."

Overall, the proportion of Japanese-funded enterprises in China choosing to stay committed to the market is as high as about 85 percent, demonstrating the firm resolve of most Japanese companies to deeply cultivate the Chinese market. Homma said, "It can be seen that despite fierce market competition and unpredictable international circumstances, the vast majority of Japanese companies remain firmly optimistic about and deeply engaged in the Chinese market."

The JCCIC has compiled a White Paper annually since 2010, summarizing the issues faced by Japanese enterprises across different regions of China and putting forward recommendations. The aim is to facilitate dialogue between Japanese companies and the Chinese government as well as local authorities. The 2026 White Paper gathered input from 8,102 Japanese-funded enterprises and contains 572 recommendations across 27 chapters.

The Japanese chamber head further stated, "Since becoming president of the chamber, I have often said that China, for Japanese companies, is no longer just a huge consumer market, but also a vital manufacturing base and a hub of innovation. It is also a supply base for outstanding talent, and a training ground for Japanese-funded enterprises to build and sharpen their competitiveness."