The Industry-transfer From Japan To China And The Countermeasure Of China

Since the normalization of diplomatic relation between China and Japan, Japan has become China's important trade partner and the main source country of foreign investments. After the burst of economic bubble, Japan began its new round adjustment of industrial structure, and then the Comparative Advantage comparison superiority of the originally leading industry declined gradually. Large number of manufacturers in industries like the steel and iron, the machinery and the automobile transferred their major production to overseas counties. And China has been chosen one of their important aim countries for investment. At the same time, the increase of the Japanese direct investment to China has propelled their mutual trade, and also brought important influences on both of their trade commodity structure and the regional industrial structure.This article analyzes the situation of Japanese industry-transfer to China, both on Japanese side and Chinese side. First, it introduces the theories of industry transfer. In the second part, it introduces the situation of Japanese adjustment of its industrial structure and analyzes the overall structure and the tendency of Japanese industry transfer. Then the structural analysis of Japanese industry transfer to China is made with the data of mutual trade and direct investment between the two countries.The conclusion found from the analysis of data proofs that the direct investments of Japan to China in some kinds of industry like the electron and automobile, at present, take the form and the characteristics of industry transfer to a certain extent. It also confirms that the investments by the majority of Japanese manufacturers in China have promoted their mutual trade, that is the essential features of the"Japanese style of foreign direct investment"put forward by Kiyoshi Kojima, a Japanese economist. In the final part of this article, the expectation of China's continuing the industry transfer is made, and some relevant suggestions are proposed as well as the countermeasure to execute.