ABSTRACT
The objective of this chapter is to identify the patterns and charac-teristics of Japanese FDI in China. Whilst chapter two provided an overview of the literature on Japanese FDI, the analysis in this chapter will add to the literature with respect to the characteristics of Japanese FDI in terms of home country characteristics. The source and type of data used in this chapter will be explained in the first section. The second section will focus on the characteristics of Japanese FDI in regard to home country specific advantages, emphasizing the sui generis nature of the Japanese industrial system in the post-war years, and highlighting the role of Japanese government as a catalyst for outward flows of FDI. The third section examines the growth and development of Japanese outward flows of direct investment in historical and economic terms within the context of increasing labor costs at home and burgeoning yen value against the dollar. The fourth section analyzes Japanese FDI outflows by region and sector. The fifth section analyzes the spatial characteristics of Japanese FDI in China in the reform period, in chronological terms and in terms of sector, form, and employees. The sixth section examines the patterns of Japanese trade within China. The seventh section explains the export and sourcing patterns of Japanese foreign invested enterprises. The eighth section examines Japanese ODA with respect to China and details its distribution geographically in China. The ninth section takes two provinces that have attracted much Japanese inward investment in China, Guangdong and Jiangsu, and examines the characteristics of Japanese FDI with respect to both. The tenth section is a summary of the chapter.
