Japanese businesses still bearish on investment

Japanese companies are still bearish when it comes to expanding or setting up new businesses in China, a new survey said.

Only 38.1 percent of the Japanese companies were willing to expand their business in China over the next two years, the lowest reading in the past 17 years, said the survey published by the Japan External Trade Organization.

Japanese businesses cited falling sales, rising purchasing and labor costs, waning development potential, less acceptance to high value-added products and strict management as reasons for the bearishness.