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Trade & Investment

Japanese investment in Southeast Asia surged last year to almost three times amount invested in China


A businessman walks in Tokyo's business district

A businessman walks in Tokyo’s business district

Japanese companies‘ investments in Southeast Asia surged last year to almost three times the amount invested in China, after relations between Beijing and Tokyo soured in 2012 and Chinese labor costs rose, a government agency of Japan said on Friday.

Japanese companies invested 2.33 trillion yen ($22.8 billion) in Singapore, Thailand, Indonesia, Malaysia, the Philippines and Vietnam last year, compared with 887 billion yen in China, Japan’s largest trading partner, the Japan External Trade Organisation (JETRO), said.

Investments doubled in Southeast Asia and fell 18 percent in China over 2012 and China’s waning attraction is likely to continue as the ratio of companies planning expansion there fell to a record low of below 55 percent, JETRO said, citing a survey of Japanese companies.

“Viewed from the Japanese companies’ headquarters, China’s economy and China’s political situation present a considerable amount of risk,” JETRO Chairman Hiroyuki Ishige told reporters at a briefing.

Sino-Japanese ties have been strained by a territorial row over tiny disputed isles in the East China Sea and perceptions in Beijing that Japanese Prime Minister Shinzo Abe wants to rewrite Japan’s wartime history and tone down past apologies.

The fall off in Chinese investment follows the outbreak of riots against Japanese interests in 2012 when the territorial dispute escalated after the Japanese government bought the uninhabited islands in the East China Sea.

Rising wages in China are also having an impact on companies trying to keep costs down and maximise profits.

China’s average salaries now exceed those of Thailand, according to a JETRO survey carried out between October and November last year.

The Philippines and Indonesian labour costs are about one third lower than China’s, while those in Vietnam are less than half, the survey showed.

Source: Reuters “Japan investment in Southeast Asia surges amid China slump”
 
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About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee

Discussion

7 thoughts on “Japanese investment in Southeast Asia surged last year to almost three times amount invested in China

  1. Chinese policy, both internal and external have marginalised it’s own position. Belligerance, arrogance and hubris have isolated China from all it’s neighbours. What now? A war with Japan? A war with Taiwan? A war with the Philippines? A war with South Korea? And that’s not even talking their idiocy with India and it’s western border regions.

    With whom will China trade in the future? This is not just Japan bailing out. Every other county would rather deal with the other countries mentioned above.

    Like

    Posted by Leigh | April 25, 2014, 3:32 pm

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