Japanese investment in China tumbles 16% as automaker woes spread

Parts, materials makers begin to retreat, with more spending going to Europe

20241004N Honda Wuhan

Honda is scaling back production of gas-powered cars in China.  © Reuters

RYOSUKE EGUCHI, Nikkei staff writer

TOKYO -- Japanese companies are pulling away from China, with capital investments by local subsidiaries declining for the seventh consecutive quarter in April-June and falling below the amount invested in Europe.

A slump that started with Japanese automakers amid tough competition has now spread to components and other parts of the supply chain in China.

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