China dropped to fourth place in a survey it has
topped since it began in 1992, with the proportion of companies
naming it the most promising region over the next three years
falling to 37.5 percent from 62.1 percent last year.
State-owned JBIC, which provides loans to help Japanese
companies expand overseas, in July-September surveyed 625 firms
which have three or more overseas affiliates, including at least
one production base outside of Japan.
Sino-Japanese relations have worsened since the survey after
China established an air defense zone in the East China Sea
covering islands controlled by Japan but claimed by China.
Most companies in the survey, 77 percent, cited rising labor
costs as a concern for manufacturing operations in China. Almost
a third said they were also worried about security and social
A consumer boycott of Japanese goods in China following
anti-Japanese riots last year hurt income from Asia's largest
economy, making China a less profitable source of income than
India and Europe, JBIC said.
MEDIA; By Tim Kelly]
(Reporting by Tim
Kelly; editing by Shinichi Saoshiro and Christopher Cushing)
Copyright 2013 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.