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Increased Insecurity in Chinese Economy and Japanese Companies’ Coping Strategies

Choi, Sung-Baek 1

1中國西安培華女子大學

Accredited

ABSTRACT

Presently, the Chinese real estate market is facing the increased possibility of a price collapse due to the imbalance between supply and demand. The risk is coming from the government, particularly the bubble in the governmental system. It is needed to pay attention to how great roles urbanization policy plays for the real estate’s oversupply and price maintenance, but if urbanization fails, it will be impossible to avoid the bubble in its governmental system. In this situation, there is a phenomenon that overseas companies are leaving the Chinese market. Due to the increase in production costs inside China and severer competition against indigenous companies, they are leaving China successively. Since the phenomenon of overseas companies leaving China leads to not only reduction in investment but deprivation of advanced technology, Chinese economy will face negative effects after all such as difficulty in its advancement and its deteriorated image shown to other countries. Especially, among non-overseas Chinese, we have to pay attention to Japanese companies making a lot of investment to China. Lately, Japanese companies are increasing their investment to ASEAN regions while reducing their investment to China significantly. But the phenomenon of Japanese companies leaving China can be seen as their strategic correction for business. First, they are reducing overseas transfer or business expansion for areas where competition is fierce and are looking for the ways of aggressive advancement into the areas with high potentials for new business.

Citation status

* References for papers published after 2023 are currently being built.