TOKYO, Jul 29 — Japanese companies no longer see China as a top destination for investment, and are overwhelmingly turning to India and ASEAN for growth, according to a joint survey by Nikkei Inc. and the U.S. think tank Center for Strategic and International Studies.
A combination of China’s slower growth and aggressive national security policies has dented the Japanese appetite to invest in the world’s most populous nation. Some 80% of respondents believe that China’s growth rate will be lower than 3% in 10 years’ time, including 34% who said that growth could be in negative territory.
The online survey received responses from roughly 2,800 people over the age of 20, working in the private sector. This is the third time Nikkei/CSIS has surveyed Japan Inc.’s sentiment toward China.
Since its accession to the World Trade Organization in 2001, China has continuously been the No. 1 destination for Japanese foreign direct investment in Asia, except for 2013, when Thailand briefly overtook it. However, when asked which emerging economy their company would invest in today, 50% said India and 38% said ASEAN nations, while only 4% of respondents named China.