TAIPEI (Taiwan News) — Japanese government officials are notifying companies that they are “on their own” if China invades Taiwan. 

According to diplomats and corporate executives, companies have been receiving these warnings for about three years, per the Financial Times. 

Nearly 3,000 Japanese companies have branches in Taiwan, according to Japanese research group Teikoku Databank. One-third of them are in manufacturing, particularly semiconductor-related industries. Retailers, wholesalers, and restaurant groups are also major investors.

“It has discouraged investment. There is lots of new US investment in Taiwan, but barely any Japanese,” a US official familiar with the issue told the Financial Times.

With no security guarantees from Japan or the US, the “risk assessment pretty much leads us to little interest in Taiwan” as an investment market, a Japanese executive said. Foreign direct investment by Japanese companies dropped 27% last year to US$452 million (NT$13.28 billion), from US$1.7 billion in 2022.

In a white paper published last week, Japan’s defense ministry called the Chinese threat toward Taiwan the “greatest strategic challenge" that it should respond to in partnership with like-minded nations.

Japan Defense Minister Nakatani Gen said Tokyo is discussing how to strengthen deterrence and defense capabilities with Washington, such as expanding joint presence in southwestern Japan and deepening military equipment and technology cooperation.