SHANGHAI -- Of the Japanese companies operating in Shanghai, 14% plan to "reduce" or "postpone" future investments in China, according to a survey by the Shanghai Japanese Commerce and Industry Club.
The city's strict two-month-long lockdown was a heavy blow to the companies' operations. China's efforts to contain the spread of COVID through its 'zero-corona policy' may accelerate Japanese businesses' 'China plus one' strategy -- a movement that took flight among manufacturers, which have set up production facilities outside China as a solution to rising labor costs in the nation.
