Japan is the largest trade mate of China. But the share of Japanese direct investment in China among all foreign direct Investments is becoming smaller and smaller. Most Japanese related enterprises in China are running badly. This is the result of the "swan ranks development model" . Workers employed by Japanese manufacturing industry are becoming fewer and fewer as a result of shifting production workshops abroad; on the other hand, resold goods from overseas Japanese related enterprises to Japan are becoming more and more. This phenomenon is called "industry hollowing out", the process of which is nothing, but the process of alliance of regional economy in Southeast Asia, creating large space for the development of new manufacturing industries in Japan. This is inevitable for Japan, who desires to be an economical power in the world. The way out of Japanese related enterprises in China is to rush out of the influence of the "swan ranks" model.
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