BEIJING : Japanese firms in China expect economic prospects in the world's second-largest economy to remain grim this year, according to a report from the Japanese Chamber of Commerce and Industry in China released on Monday. About three-quarters of the 1,700 respondents in a survey said they expected the

China is Japan’s largest trading partner, and one of the biggest investment destinations for Japanese companies.

Uncertainty about China’s economic prospects and pessimism about weak demand were cited as top reasons why 48 per cent of the companies surveyed said they did not invest in China or reduced their investment in 2023 compared to a year earlier.

The companies also said they were concerned how Chinese laws on espionage and cross-border data flows would play out.