A survey by the Credit Bank of Japan showed many Japanese companies believe there are great political and financial risks in getting involved with China. The companies lack confidence that China's current foreign investment policies will continue. They expressed concern about Chinese red tape; doubts that China fully understood modern management methods to ensure success of joint ventures; and the shortage of basic data on which to make investment decisions.
The report said the chinese were more interested in achieving a large volume of producton than low costs, which endangers their export competitiveness. The companies also fear Chinese planners will demand wages that are too high to make exports profitable.