Survey Results Less than 10 percent of Japanese Firms would exit China

Only 8.7 percent of the 104 Japanese companies that responded to a survey conducted earlier this month by a Kyodo News group firm said they were planning to scale down their operations in China or pull out from the Chinese market, according to the poll released Tuesday, despite deteriorating ties between Japan and China amid a territorial dispute.

The survey by NNA Japan Co. found that 57.1 percent of the Japanese firms said they were directly or indirectly affected by anti-Japan riots that erupted across China in mid-September, but 60.6 percent said they would maintain their business operations.

The massive protests in China were triggered by Tokyo’s nationalization of part of the Japan-controlled islands in the East China Sea claimed by Beijing. The islands are known as the Senkakus in Japan and Diaoyu in China.

The poll based on questionnaires underlined the strength of economic ties between Japan and China, as 30.8 percent said they were planning to expand their operations or make new investments in the country, despite the violent demonstrations.

In the survey conducted on Oct. 15-19, about a month after the anti-Japan rallies occurred in China, 37.1 percent of the Japanese companies expected the riots to have had a negative impact on their businesses by the end of March next year.

via Mainichi

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza