Japanese companies are abandoning an approach to business in China that was once seen as apolitical. This marks a major shift from its time as the largest investor in China. (Read more below) Bloomberg September 9, 2024 12:20 JST.
While the scale is small, they are happy to turn a blind eye to some of the drawbacks. As the scale grows, the drawbacks become impossible to ignore and it becomes a target for regulation. Investors feel like they have had their backs turned. This is something that happens at any time and place, not just in China. These risks have become apparent for both Japan and China. You can overcome it, or you can withdraw, it doesn’t matter.
>>1 No, it’s not over. It’s just that the real estate bubble has burst and things aren’t going well. A shrinking of the global economy is inevitable. Now just happens to be the time when that happens.
It’s nothing. It’s just something the financial world and the media have been hyping up. If it turns out that the risks outweigh the benefits, it’s only natural to stop.
A huge, aggressive nation was born because of the Liberal Democratic Party, which continued to provide financial support to those who invested in China, fuelled by the Nikkei.
The anti-espionage law is a shitty law that can be easily managed, and the technical know-how should be handed over to China. No one will stay. On top of that, labor costs are rising and people are leaving. It’s just a trash can.
In the case of automobiles, local expansion was only permitted as a joint venture with a local automobile company. Even if they built a development center and trained local employees, they were sent back to the parent company from where they had been trained, and all their know-how was absorbed, so this should have been predictable. It would have been better to withdraw quickly while they were still in the black with NPV.
I thought maybe they were a little late in realizing this, but maybe it’s because the powerful pro-China politicians are gone and the guidance from them is gone too.
>>33 China is number one in the world in both the quality and quantity of scientific and technical papers. It also has the largest number of items with the world’s largest share. China is supported by the world’s best scientific and technological capabilities. The fall in real estate prices will actually give the Chinese people more spare capacity, further strengthening the Chinese economy. Europe is an empty shell with no industry, but they pretend to be developed countries.
>>33 Moreover, the real estate problem, such as the collapse of local financing platforms and mega-developers, will continue to decay the longer it is left unchecked, and will become a caries-like condition that will not be resolved unless the source of the problem is removed.
>>38 It’s inevitable that it will rot, but if there’s nowhere else to go, where will it go? You can imagine, there have already been stabbing incidents. Do you really think you can deal with a country that is several dozen times stronger than you? Look at South Korea lol, and it’s a neighboring country.
I’m worried that Japanese companies will change their mindset and say, “We’ll stop investing in China, but we’ll let Chinese people come and work in Japan.”
It’s funny because the bubble burst before they were able to make high-value-added products in their own country. And they’re investing in real estate in Japan again lol. When the prices get too high for Japanese people to buy, the Chinese will just play Old Maid again lol.
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