A survey of Japanese companies operating in China shows 60 percent of them expect a further weakening of the economy. Many remain cautious about additional investment in the country.
The Japanese Chamber of Commerce and Industry in China conducted the quarterly survey in July.
More than 1,700 firms responded and just 11 percent say they believe the economy will improve this year. The figure is down 4 percentage points from the previous survey.
Forty-five percent of the respondents say they will reduce or make no investment in China in 2024.
The poor economic outlook and fierce price competition were given as reasons.