Reforms offer new opportunities for Japanese businesses

Currently, Japanese investment in China mainly centers on equipment, which leaves huge potential regarding technology transfers that would facilitate China's restructuring efforts.

"As the two countries are both on a track of economic adjustment, we can work together in areas such as the green economy, elderly care, modern agriculture and technology," according to Song.

Wang Taiping, former Chinese Consul General to Osaka of Japan, highlighted the financial and energy efficiency sectors for future cooperation, as investment is set to get easier with the steady progress of the free trade agreement (FTA) between China, Japan and the Republic of Korea (ROK).

In May, the China-Japan-ROK agreement for promotion, facilitation and protection of investment took effect, and this is widely believed to be a prelude to the foundation of the FTA.

Meanwhile, China is piloting a range of special regulations in the Shanghai free trade zone, including liberalizing interest rates and facilitating cross-border use of the Chinese yuan, to foster an international standard business environment that will be a boon for foreign investment.

"China's market is changing fast, and if Japanese businesses do not actively tap the market, they will get crowded out," Song stressed.

Infographics: Ties that bind China-Japan trade	Top 10 trading partners of the Chinese mainland