Japan-China bilateral economic ties are facing challenges posed by rising geopolitical tensions and Japan’s moves to reduce its economic exposure to China, sluggish demand in Japan and China’s economic slowdown, and business environment-related issues.
South-east Asian economies and India will benefit as Japanese firms scale down their operations in China and divert business elsewhere.
Japan and its Western allies will further step up efforts to deepen their mutual trade, investment and technology ties.
China will further boost support for its semiconductor and other high-tech industries, including chip-making equipment manufacturing.
The Trump administration’s assertive trade and foreign policy towards China will dent China-Japan economic ties, hurting Japanese firms.
