A recent survey of companies planning to increase direct overseas investments in the next three years found nearly all of them intend to do so in China, the Japan External Trade Organization said Monday.
A survey of 720 member companies conducted by the government-affiliated organization in October found that of the 300 planning to boost overseas direct investment in the three years from fiscal 2002, a total of 287, or 95.7 percent, have chosen China.
China was followed by the United States, chosen by 39.7 percent, JETRO said.
Asked their reasons to increase direct investment in China, 71.1 percent cited expansion of local production and sales, and 44.9 percent mentioned cost reductions.
The survey also found that 103 of the 720 firms plan to wind up or reduce selected overseas operations in the coming three years, some citing intensified competition. Discontinuation or reduction is planned by 25.2 percent for operations in the United States and 20.4 percent for those in Britain.