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flag Japanese companies' investments in China decline for seven quarters, particularly affecting automakers.

flag Japanese companies are increasingly withdrawing from China, with capital investments from subsidiaries declining for seven consecutive quarters. flag In the April-June period, investments fell by 16% year-on-year, primarily due to heightened competition affecting supply chains. flag Japanese automakers have been particularly hard hit, seeing their Chinese subsidiaries' revenue drop over 20% year-on-year since early 2023, reflecting broader challenges in the market.

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