Masahiro Okafuji, the chairman and CEO of Itochu, expressed optimism about the potential for Japanese companies in China despite ongoing bilateral tensions. In a recent interview with Nikkei in Tokyo, he detailed a number of reasons shaping his bullish outlook. He stressed the freezing of China’s real estate sector and general economic slowdown as the two most pressing concerns.
In our interview on December 31, 2025, Okafuji pointed to the continued tension in Japanese–Chinese relations as an instance of persistent tension. He stressed that there are still excellent business prospects out there for Japanese companies. He pointed to China’s ongoing real estate crash. This difficult economic environment may prove to be a fertile playing field for the Japanese firms ready to change, take advantage of the timing and come out stronger.
Okafuji emphasized the importance of Japanese firms approaching the complicated Chinese market with caution. He noted that the current economic stagnation creates a double-edge sword. Although it brings no shortage of complications, it opens the door to unprecedented opportunities for those willing to make bold moves and form smart collaborations.
Tensions between Japan and China are at decades-long highs. Still, mentally Okafuji is optimistic that fundamentals of trade and investment will come through. Secondly, he emphasized the dynamism of Japanese corporations. Talent is best known for their willingness and ability to pivot with a rapidly evolving economic landscape. His insights read as if he feels that long-term prospects for Japan-China economic relations are strong, regardless of short-term political obstacles.
Itochu, one of Japan’s so-called “sogo shosha” trading houses, which have traditionally acted as a powerful and visionary engine for building trading relationships across Asia. Okafuji’s view reflects a broader line of thinking among Japanese business leaders. They know how immensely important it is to remain connected with the world’s second largest market.