Foreign Direct Investment in China by Japanese Multinationals

Research Project

Project/Area Number	07630106
Research Category	Grant-in-Aid for Scientific Research (C)
Allocation Type	Single-year Grants
Section	一般
Research Field	Business administration
Research Institution	KOBE UNIVERSITY
Principal Investigator	YOSHIHARA Hideki Kobe University, Research Institute for Economics and Business Administration, Professor, 経済経営研究所, 教授 (60031390)
Project Period (FY)	1995 – 1996
Project Status	Completed (Fiscal Year 1996)
Budget Amount *help	¥1,900,000 (Direct Cost: ¥1,900,000) Fiscal Year 1996: ¥700,000 (Direct Cost: ¥700,000) Fiscal Year 1995: ¥1,200,000 (Direct Cost: ¥1,200,000)
Keywords	China / direct investment / multinational enterprise / questionnaire survey / 中国子会社
Research Abstract	The followings are main findings from the questionnaire survey to Chinese subsidiaries. 1. Many (two thirds) are successful. 2. Many (three fourths) want to expand businesses in China. 3. Many (three fourths) have Japanese presidents. 4. Many Chinese factories (80%) achieve lower cost production than Japanese factories. 5. Japanese expatriates face language problem (80%). The questionnaire survey to Japanese parent companies (manufacturing) reveal the following findings. 1. Many (three fourths) have invested in China 2. On average, one company has 4.0 Chinese subsidiaries, and this number is 14% of the total number of foreign manufacturing subsidiaries. 3. As for future investment countries, China is the second ranking (the first is ASEAN). 4. Many (three fourths) evaluate production in China as "We have problems, but they are not beyond our anticipation." 5. Many estimate that attractiveness of China as investment country will be improved in the future.