Eco-friendly Japanese manufacturers have become optimistic about their businesses in China as its President Xi Jinping has promised to achieve carbon neutrality by 2060, but the outlook may not be so bright.
China's environmental restrictions as well as a new economic growth strategy called "dual circulation," designed to bolster the country's domestic demand while trying to increase exports, could pose obstacles for Japanese companies looking to expand their local operations.
Xi's leadership is "seriously eager to tackle environmental issues, so the Chinese market would look very attractive for Japanese firms concentrating on development of eco-friendly products," a businessman familiar with the situation in Beijing said.