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Japan’s Success in China

In: The Global Competitiveness of the Asian Firm

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  • Nigel Campbell

Abstract

Japanese firms have achieved a dominant position in the Chinese market. Japan is China’s largest trading partner after Hong Kong and its trade is above that of America or Western Europe (see Figure 8.1). This might seem natural, since after all the two countries are geographically close, share a common ancestry and are complementary in resources. In exchange for machinery, steel and chemicals China can supply Japan with raw materials, textiles and the products of light industry. Although there is a strong economic logic to a close relationship, recent history has made the Chinese very wary of the Japanese. In 1937, Japan invaded Manchuria and at one time there were over 500 000 Japanese colonists living in Northern China. In addition, thousands of Chinese died at the hands of the Japanese during the Second World War. As a result, the Japanese are not particularly liked in China.

Suggested Citation

  • Nigel Campbell, 1994. "Japan’s Success in China," Palgrave Macmillan Books, in: Hellmut Schütte (ed.), The Global Competitiveness of the Asian Firm, chapter 8, pages 129-137, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-23423-3_8
    DOI: 10.1007/978-1-349-23423-3_8
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