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Hollow ring

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April 2005

<i>China's allure grows. But that doesn't mean sayonara Japan.</i>

Japanese firms are moving more production and even research to China, now that they see consumers. But they have also taken work back home. Inevitably more work will go to China, but Japan's innovation prowess will keep their factories busy.

Between 1985 and 2002 Japanese companies invested 3. 5 times more in Southeast Asia, than in China, reports the Japan External Trade Organization (Jetro), though Japan's investment in dollars is similar to Korea or Taiwan. Investment now ...

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