2010 Volume 9 Issue 1 Pages 1-30
This paper discusses past economic policies related to direct investment in China. It focuses on economic policy changes during China’s open market period after China joined the WTO. In addition, the study analyzes the impact of the changes on direct investment in China by Japanese companies. To date, China has changed its expectations of the role of direct investment from foreign companies depending on its stage of economic development. These expectations have certainly changed from previous stances with the opening of markets and expansion of domestic demand. While these types of changes in China’s policy affect the future growth strategy of Japanese companies, this paper analyzes the current state of management strategy of Japanese companies in China amidst a period of open markets and increased domestic demand. The study uses statistics related to the overseas business activities of these companies and the recent growth strategy in China. To this effect, the state of Japanese and Chinese corporate alliances in new regions is considered.
