A Japanese automaker has indicated that it will incorporate advanced Chinese technology and prioritize speed in EV development. Meanwhile, continued visits to China by public- and private-sector representatives are driving efforts to improve Japan-China relations.
According to the IMF’s World Economic Outlook, China’s economy remains approximately five times the size of Japan’s, and the Chinese market is moving toward higher value-added products and services. The areas in which Japanese companies can leverage their technological capabilities are expanding, while the Chinese market requires younger local personnel with decision-making authority and systems for rapid development and customer acquisition.
There is growing recognition that Chinese companies’ technology in EVs, robotics and energy has reached world-class levels in the automotive sector. More Chinese companies are also seeking the reliability of Japan’s supply chain, prompting Japanese-affiliated companies to step up efforts to use local technology and source parts locally.
Regarding Japanese companies’ efforts to develop the Chinese market, the China-Japan Chamber of Commerce was reported to have called for improvements to export regulations and customs inspections in a survey conducted at the end of July. Those involved are concerned that the impact will grow if the deterioration in relations between the Japanese and Chinese governments continues.
With China the world’s largest automotive market, Japanese, US and European automakers are accelerating the development of models for the local market. Toyota plans to assemble the next-generation Lexus SUV at a new plant in China in autumn 2027, with first-year monthly production estimated at 1,000 units and annual production from 2028 onward at several tens of thousands of units. Nissan plans to shorten new-vehicle development time from the previous approximately 2 years, while Volkswagen also plans to expand its new-energy vehicle lineup through partnerships with Chinese EV manufacturers.
Public- and private-sector efforts to normalize Japan-China relations have intensified, beginning with a bipartisan group of lawmakers’ visit to China. Discussions have covered concerns over the detention of Japanese nationals residing in China and the importance of people-to-people exchanges, including through talks with Vice Foreign Minister Lu Kang and visits to China by the Japan-China Friendship Diet Members’ League.