Development Report of Asia Direct Investment in China

Abstract

The first stage (2000–2005), Japan’s investment in mainland China ushered in a new development stage of synchronous growth with the world’s investment in mainland China. The total contract amount reached $3.68 billion in 2000. In 2001, the growth rate of Japanese companies’ investment in mainland China far exceeded that of the world’s investment in mainland China, the total contract amount and the total use amount both accounted for more than 40%. In 2002, its investment in mainland China continued to show growth momentum, and Japanese companies accelerated in transferring its production bases to China, as China was increasingly becoming a global production base after joined the WTO. Annual report by Japan External Trade Organization noted that the main reason for a substantial increase of Japan’s investment in China in the second half of 2005 was that Japanese automobile manufacturers began to invest in China by a large-scale. Simultaneously, Japanese electronics manufacturers started to expand investment, increasing the supply of electronic products in China’s market. In addition, Japan’s investment of chemical pharmaceutical, finance and insurance, wholesale and retail, machinery and other industries in China surpassed $254 million.