Less Japanese companies feel that the Chinese economy is worsening, according to a survey conducted by the Japanese Chamber of Commerce and Industry in China.

The organization conducted the survey with about 1,500 Japanese companies between October and December 2024.

The number of companies that answered that “the Chinese economy was worsening” decreased by about 20 percent from the previous survey, showing an improving trend for the first time since the survey began in 2023.

The survey indicated that the Chinese government’s economic stimulus measures, such as subsidies for purchase of new home appliances, are beginning to have an effect.

Some respondents said that they could not actively invest amid the worsening trade friction between China and the United States following President Donald Trump’s raised tariffs on Chinese products.