Sixty-five percent of major Japanese companies say the rapid growth of the Chinese economy is having a favorable effect on the Japanese economy, according to a recent survey by Kyodo News.
The poll, based on responses from 159 major companies, shows only 6 percent are concerned about unfavorable effects, such as a loss of jobs due to the transfer of factories to China from Japan.
For a few years through 2003, negative views of China prevailed among some government officials troubled by deflationary pressure in the economy and the U.S. business community struggling with trade deficits due to cheap exports from China and pirated goods. But the survey suggests such views are fading.
In multiple-answer questions, 68 percent said they have already set up a business base in China, 62 percent said they are doing business with Chinese entities and 36 percent said they have invested in the Chinese market. Six percent said they have nothing to do with China.
In their assessment of the rapid shift to a market economy in China, 58 percent said it will produce good effects for China while furthering structural reforms in Japan, allowing Japanese to better compete with Chinese.
Twenty-one percent said it will contribute to easing the dependence of the Japanese economy on the U.S. economy and stabilize business conditions in Japan.
But 20 percent said possible confusion over business rules in China could be a risk factor for the Japanese economy.