Toyota announced a substantial 14.6 billion yuan (US$2 billion) investment to build an electric vehicle plant in Shanghai, representing one of the largest foreign investments in China since the imposition of US tariffs. This is viewed as a significant vote of confidence in the Chinese market.
Additionally, Toyota signed a 236 million yuan deal for a hydrogen fuel cell joint venture in Sichuan.
Nissan, another Japanese automaker, plans to export EVs assembled in China to global markets despite existing trade complexities and tariffs.
These investments contrast with a more cautious approach among many foreign firms, who are adopting a wait-and-see stance regarding investment in China due to ongoing trade uncertainties and US pressure on trade partners to limit trade with Beijing.
The bold moves by Toyota and Nissan highlight a divergence in strategies among multinational corporations operating in China. While some are hesitant, others are betting on the long-term potential of the Chinese market despite challenging geopolitical factors.