Research on the Localization of Management of FDI Japanese Companies in Mid China Risks and Obstacles

Abstract

Due to appreciation of CNY (Chinese Yuan), labor shortage, rising payroll, increased land and operating costs, Chinese economy in coastal areas faced a lagging development, however, investments to the areas surround Yangtze River are increasing. In Hubei province, which is the core province of this regional area, there are 364 Japanese companies. Most of them are auto mobile related companies. In this area, the Investments from Japan are increasing. October 2014, we did survey 59 Japanese companies in Hubei province and surroundings in Mid China. In this research we analyze the companies’ operation and latest managerial staffs’ localization situation based on the company structures, employee number, and operating years. Also we discuss the risk of delay for localization of management in Mid China Foreign Direct Invests of Japanese (FDIJ) compare with United States, and China entire.