FDI from Japan hits record high

Japan's investment into China rose 19.8% in 2005 to a record US$6.5 billion, according to the Beijing office of the Japan External Trade Organization (JETRO). This came despite anti-Japanese protests last April triggered by Tokyo's bid to join the UN Security Council, its attitude towards its wartime activities and disputes over energy resources. The increase was driven by investment from car manufacturers and electronics firms. Although a survey of Japanese companies soon after the protests found that 36.5% thought the incidents would damage their business prospects, the FDI figure suggests that trade between the two nations is robust enough to weather political storms. Koji Sako, assistant director of JETRO's China and North Asia division, said Chinese consumers were making purchases based on price and quality rather than politics.