Flashsurvey: A new government in sight

German business expects easing of entry restrictions and accelerated structural reforms under new government in Japan

• 71% of German companies in Japan confirmed a positive business development in the past twelve months according to a recent survey by the German Chamber of Commerce and Industry in Japan (AHK Japan).
• 58% of companies surveyed think that further economic stimulus is necessary to overcome the consequences of the pandemic.
• Easing travel restrictions and lifting the entry ban into Japan as well as deregulation and structural reforms also rank high on the list of expectations to the new Japanese government. 

September 27, 2021 | Tokyo – Despite the challenging economic environment, most German companies in Japan remain resilient and continue to thrive. According to a recent flash survey by the German Chamber of Commerce and Industry in Japan (AHK Japan), 71% experienced growth or stable business during the past twelve months. 56% of German companies confirmed a positive business development versus 28% negative responses.

62% of German companies say that the multiple states of emergency have hampered their business activities. Respondents explicitly criticized the handling of the entry and border controls by Japanese authorities: 64% of the German companies were unsatisfied how Japan handled the entry regulations in response to the COVID-19 pandemic. 42% said they were negatively affected by the entry ban which impacted them in bringing necessary specialists, technical experts, and new expatriates to Japan.

With a new government in Tokyo in sight, 56% of German companies in Japan expect the new government to accelerate its digitalization efforts and 51% think regulatory and labor market reforms are among the most important tasks to modernize Japan’s administration and revitalize its economy. 58% of German companies believe further stimulus for Japan’s economy is needed to regain the pre-crisis level.

"German business in Japan has been very robust despite Corona in the past 18 months and has shown a mostly positive development. Now, it will be important to revitalize international business and continue structural reforms.", said Marcus Schürmann, CEO of AHK Japan and Delegate of German Industry and Commerce in Japan. "One of the main requests to the new government will be to ease travelling and the entry into Japan, recognize international vaccination certificates and ensure transparent procedures regarding the issuing of visa and resident permits. This will considerably benefit the recovery of Japan’s economy.”

Regarding future foreign policy, 43% of German companies believe the new government will strengthen relations with like-minded partners. Only 17% expect a rapprochement to China.

Japan is a key partner for German business. With a trade volume of 38.6 billion Euro, Germany is the Number 1 European exporter to Japan and vice versa. 12,480 German companies export to Japan, 450 German companies have their own subsidiary in Japan creating 265,000 jobs. The German stock of foreign direct investment in Japan adds up to 15,6 billion Euro. 10 German companies are among the top 100 foreign investors in Japan.

The current AHK Japan online survey ran from September 21 to 22, 2021. Responses from 21% of 403 surveyed companies were included in the evaluation.

The full results of this flash survey are ready to download here:

Survey results (PDF)

Press Contact

Yuko Makita
Communications
German Chamber of Commerce and Industry in Japan (AHK Japan)
Tel.: +81(0)3 5276 8741
Email: press(at)dihkj.or.jp