While most Japanese people understand English, most do not speak it well unless they have regular contact with English speakers. However, Japanese etiquette prevents people from admitting they don’t understand the conversation, which can make communication difficult. It is best to speak in simple terms and offer business materials in writing since most people understand writing better than conversation. Be careful of putting anything in writing that could be construed as a commitment, however, since the Japanese may consider even simple statements as binding agreements that will stay in effect forever.