110 Japanese firms went bankrupt in China last year

One-hundred-and-ten Japanese firms went bankrupt in China last year amid mounting labour and production costs besides heightened Sino-Japanese political tensions, a research report said, highlighting challenges in doing business in the second largest economy.

A new report by Tokyo Shoko Research showed that 110 Japanese companies went bankrupt last year citing the challenges of doingbusiness in China, or 'China risk', the Hong Kong-based South China Morning Post reported.

A combination of increasing production costs and heightened political tensions, were cited as some of the reasons. It was an increase from 101 firms the previous year and the highest number since Tokyo Shoko Research began the annual survey in 2014, the report said.

As the Chinese economy slowed down pressures increased for the foreign investors, specially the Japanese firms which faced a complex political situation since the crisis over the disputed islands in the East China Sea since 2012.

Japan is the one of the largest investor in China for decades and all its top automobile firms are firmly entrenched in the Chinese market.

Bilateral trade accounted for $303 billion between the two countries in 2015 despite bilateral tensions.