2021-12-09-牛津经济研究院-Japan_Japan_s_FDI_strategy_is_to_diversify_away_from_China_4页_209kb

Japan's FDI Strategy: Diversification Away from China

• Japan's foreign direct investment (FDI) position has nearly tripled over the past decade, growing from ¥68 trillion to ¥190 trillion.
• Currently, Asia accounts for nearly 40% of Japan's FDI income, driven by high returns, especially in China.
• In the 2000s, investments focused on low-cost production in Asia, but recent shifts emphasize serving local demand in manufacturing and services.
• China remains the top destination (7.5% share), but its growth has slowed due to labor costs and diversification efforts like the "China+One" strategy.
• ASEAN 5 (e.g., Thailand and Vietnam) and NIES 4 (e.g., Singapore) are benefiting from supply chain diversification, with Vietnam's FDI rising more than sixfold.
• The US-China confrontation and decoupling pressures are accelerating this shift, alongside rising sustainability concerns, such as emissions reduction.
• FDI in services (e.g., finance and insurance) is growing faster than manufacturing, with Asian countries offering high returns due to economic growth.
• Future FDI strategies will likely continue to prioritize regional hubs to mitigate risks and leverage opportunities beyond China.