Japanese companies convinced that future growth will be found outside their own country are committing themselves to new investments in China even as they continue to retrench and restructure at home.

Several companies have begun to build up sophisticated research and design operations in China, while a wave of service sector companies are also venturing to the mainland for the first time.

Nissan Motor plans to open a design studio in Beijing in 2011 – the first Japanese auto company to do so in China. Shiro Nakamura, Nissan's chief creative officer, said the studio would “enhance our product competitiveness in China and Asia, where the automotive industry continues to see robust growth”.

Chipmaker Renesas Technology has said it will hire another 100 design engineers in China over the next three years, taking its total to 500. It will also add another 300 staff over the next year at its chip-testing and assembly operations in Beijing.

Even as it expands abroad, Renesas is expected to slash its sprawling operations in Japan after a merger with rival NEC Electronicstakes effect in April.

Japanese companies are looking for growth in developing countries, but their biggest target for investment is China.

Total foreign direct investment from Japan fell by 47 per cent in 2009, according to Bank of Japan data, but the amount going to China only dropped by 3 per cent.

The move to invest in China is especially strong in the Japanese service sector, which has suffered from deflation, population decline and excess investment in the past.

Future domestic returns are also expected to remain low.

Isetan Mitsukoshi, Japan's largest department store, announced plans to open its fifth department store in China next year, while in Tokyo it closed a long-established store.

Other retailers, from bicycle seller Asahi to the electronics store Laox, are planning their first shops in China.