Key facts
- Chinese tech companies are seeking to expand into the Japanese market.
- Exhibitors at the CEATEC show acknowledged bilateral tensions.
- China imposed export controls on 40 Japanese companies.
- Japan increased its defense budget by 9.4% to $58bn.
- Chinese tourist visits to Japan fell 45% in February.
Chinese technology firms are actively pursuing business opportunities in Japan, navigating a significant diplomatic chill between the two neighboring countries. At the CEATEC show, exhibitors acknowledged the existing friction but expressed a desire to find new markets beyond domestic pressures. This push occurs amidst heightened tensions, including China's imposition of export controls on 40 Japanese companies and Japan's response to military exercises and territorial claims. Historically, relations have been strained by differing perspectives on World War II apologies and Japan's increasing defense spending and constitutional revisions, which China views as 'reckless militarism'. Despite these challenges, Chinese companies are attempting to penetrate the Japanese market, as evidenced by events like the CEATEC exhibition.