Mr. Huang Feng, Chairman of the Shanghai Association of Foreign Investment, was invited to speak on the above topic to Keizai Koho Center member corporations. Around 40 executives and representatives in charge of overseas businesses took part in the event.

Mr. Fu Jihong, Vice President of the Shanghai People’s Association for Friendship with Foreign Countries made an initial remark. He expressed his hope that the reopening of visa-free travel for Japanese nationals visiting China will not only increase business travel, but also lead to the revitalization of cultural and personnel exchange.

Mr. Huang Feng, Chairman of the Shanghai Association of Foreign Investment, analyzed the macroeconomic situation in China. He explained the Chinese government’s foreign direct investment policies that have undergone significant changes in recent years, as well as the investment patterns of Japanese corporations. He gave examples from the manufacturing, telecommunications, and medical sectors to illustrate the direction of the Chinese government’s policy of deregulation and the removal of restrictions.

Regarding the investment trends of foreign-affiliated companies, including Japanese companies, he noted that companies are maintaining their current business scale and are cautious when it comes to business expansion, placing their primary focus on risk management. He also stated that foreign-affiliated companies are shifting their investment strategies by limiting investment and generating profits through means such as forming joint ventures with Chinese companies, establishing production bases in special economic zones, acquiring shares, and negotiating licensing agreements.

During the discussion, a participant inquired about the businesses plans and research and development initiatives that will contribute to environmental conservation in China. Mr. Huang responded that China has already announced its goal of carbon peak and carbon neutrality and that numerous specific environmental protection policies are anticipated to be announced in the future. He emphasized that the Shanghai municipal government is also actively promoting policies related to environmental conservation and providing the necessary assistance. Additionally, he urged Japanese companies to expand their operations and invest in research and development, which would contribute to environmental conservation in China.