Japan Inc makes a renewed U.S. push as China fears mount

TOKYO, April 17 (Reuters) - Japanese companies are increasingly hitching their growth plans to the United States, as concerns about Chinese demand and Beijing's influence over supply chains prompt a noticeable pivot toward the world's largest economy.

Robot maker Yaskawa Electric (6506.T)New Tab, opens new tab, drinks company Asahi (2502.T)New Tab, opens new tab, chipmaker Renesas Electronics (6723.T)New Tab, opens new tab and automaker HondaNew Tab, opens new tab(7267.T)New Tab, opens new tab are just a few of the companies that in recent months have either expressed interest in expanding in the U.S. or announced plans to do so.

While Japan remains tied to China through extensive trade and manufacturing operations, Tokyo has pledged with other members of the Group of Seven (G7) nations to "derisk" but not "decouple" from the world's second-largest economy.

That trend of limiting supply-chain exposure to China was highlighted by Prime Minister Fumio Kishida's trip last week to the United States. Kishida, who visited North Carolina to tour a Toyota Motor (7203.T)New Tab, opens new tab EV battery facility now under construction, also emphasised cooperation on supply chains.

After years of seeing China as a market of almost endless opportunities, Japanese companies are now taking a more cautious view, executives and analysts say. Almost half of Japanese companies operating in China did not invest there last year or reduced investment, a survey showed in January.

Some of the caution is due to economic security risks - China last year detained a senior Astellas Pharma (4503.T)New Tab, opens new tab executive on suspicion of spying - while many companies cite pessimism about Chinese demand and a weakening economy.

"The illusion about the Chinese economy, the Chinese market, is disappearing," said Kuni...
[Short citation of 8% of the original article]