Chinese economic nationalism, Japanese enterprises, and localization: The growing importance of social engagement

In this chapter the impact of China's economic nationalism on the workings of Japanese business in China is examined. The long and complex history between China and Japan combined with recent territorial disputes has led to a pervasive culture of anti-Japanese sentiment throughout China. Consequently, Japanese companies seeking to expand their business are compelled to navigate the highly politicized environment of Chinese economic nationalism. Based on field research this chapter analyzes the state of Sino-Japanese relations and the impact of China's economic nationalism on Japan's commercial prospects in terms of the growing importance of "business-society relations" in reversing this trend. To make inroads into China, Japanese corporations must not only compete with domestic and multinational corporations but also work to improve their public image by focusing on the social issues of environmental protection and social stability.