In recent years, one question has been appearing more and more frequently in the consultations I receive: “Can projects involving Chinese capital really last in Japan?”
A decade ago, Chinese investment was often welcomed among foreign investors.
Decisions were made quickly, capital was abundant, and while Japanese companies were still deliberating carefully, Chinese firms could move ahead with bold investment choices.
That speed looked highly attractive in a Japanese market often perceived as slow or stagnant.
But the reality on the ground tells a different story.
In the early stages of market entry, meetings tend to proceed surprisingly smoothly.
Executives from headquarters issue clear directives, and the Japanese side is energized by the momentum.
Yet, a few months later, managers at the local subsidiary often begin to ask the same uneasy question: “Are we really okay to keep going like this?”
The reason is simple.
Businesses are often pushed forward without a deep understanding of Japan’s institutional and regulatory framework.
