Japanese companies have become more reluctant to expand investment in China, criticizing the Communist-led government’s radical “zero-COVID” policy, including the frequent imposition of lockdowns in major cities, as a political risk. China’s tough restrictions on people’s movements, which have disrupted domestic supply chains for more than two years, have prevented Japanese firms from mapping out their business strategies in the world’s second-biggest economy with a population of 1.4 billion. Many Japanese enterprises have also been eager to reduce their staff in China, given that the country’…