Japanese Chemical Trader blog

Japan Chemical Trading Blog

Japan, the EU and the U.S. Investment in China Decreasing

According to the announcement of the Ministry of Commerce of the People’s Republic of China on June 15, investment by Japan, the EU and the U.S. in China is dropping.
In the January – June period of 2014, investment by Japan decreased by 48.8%, almost half.
The weaker yen and increased production costs such as local labor costs are considered to be background factors.

In the same period, investment by the U.S. decreased by 4.6%, the EU by 11.2% and ASEAN by 19.25%. In contrast, South Korea’s investment drastically increased by 45.6%.
While investment by Japan is sharply decreasing, investment by South Korea is sharply increasing.
Will this trend continue?