New trend and Prospect of Japan's Direct Investment in Chinaunder the Belt and Road

Along with the implementation of the “Belt and Road” initiative, “Internet+” and other strategies, energy conservation and environmental protection, third-party market cooperation and innovation cooperation have become important areas of Sino-Japanese economic and trade cooperation. However, the U.S. provoked trade friction between China and the U.S. in 2018 and the global outbreak of COVID-19 at the end of 2019, all of which have had an impact on Japanese direct investment in China. This paper analyzes the new trends of Japanese direct investment in China in recent years and the adjustments of their investment strategies made by Japanese enterprises in China, and indicates that the main influencing factors for these changes and adjustments are Sino-Japan relations, COVID-19 epidemic, Sino-US trade frictions, and China and Japan's own economic situation. Meanwhile we point out the limited impact of COVID-19 epidemic and the Sino-US trade friction on Japanese direct investment in China. In the context of the Belt and Road, we consider that prospects for Japanese direct investment in China is optimistic, especially the third-party cooperation has more room for cooperation.