Jobs Return to Japan From China

Japanese companies are reconsidering their offshoring strategies due to rising wages in China and a weaker yen, which makes domestic production more attractive. A Jetro survey indicates a shift in operations back to Japan. Despite this, offshoring remains significant, driven by Japan's aging population and limited domestic demand. The economic landscape is evolving, with domestic consumption becoming a key growth driver.

What is the main reason for Japanese companies considering moving operations back to Japan from China?

• Increased taxes in Japan

• Decreasing demand in Japan

• Rising wages in China

• Better infrastructure in China

How has the lower yen affected Japanese corporate behavior?

• It has led to higher wages in Japan.

• It has increased the cost of importing raw materials.

• It has made domestic production more cost-effective.

• It has made exporting more expensive.

What has been the trend in wages in China compared to Japan since 2010?

• Wages in Japan have doubled.

• Wages in China have risen by about 80%.

• Wages in Japan have increased significantly.

• Wages in China have decreased.

What is a significant challenge for Japan's economy despite some companies moving back?

• High inflation rates

• Lack of technological advancement

• Political instability

• Aging population and limited domestic demand

What percentage of Japanese companies' production occurred overseas in the first quarter of the year?

• 50%

• 33%

• 25%

• 10%