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Japan firms stop China operations after protests

Citation: http://www.straitstimes.com/breaking-news/asia/story/japan-firms-stop-china-operations-after-protests-20120917


In developing countries, essential conditions needed for attracting foreign companies' plants are
・Lower average wages
・Safety of the countries
・Higher level of education
・Stability of the governments


Mainland China*1 totally fulfilled those requirements when more and more Japanese operations began business in the country. But after anti-Japan demonstrations took place over the country, it seems that safety of the countries has no longer been guaranteed. And, rising wages in China is also an unattractive factor for Japanese operations.
Recently, more and more foreign companies are moving their factoies to the interior of China or South East Asian countries.
On the other hand, the number of retail stores invested by foreign operations are still increasing because of large population of China.
It is difficult for Japanese service industries to decide what to do in Mainland China.

*1:港澳台(Hong Kong, Macau, and Taiwan) are excluded in this diary.