Japan-China ceo dialogue: Japan-China Economic Relations & Trade – Status Quo & Prospects

Download 17.63 Kb.
Date conversion03.05.2016
Size17.63 Kb.

Boao Forum for Asia 2014

Session Summary
April 11, 2014

Japan-China CEO Dialogue: Japan-China Economic Relations & Trade – Status Quo & Prospects


Japanese Speakers/CEOs

  • FUKUDA Yasuo, Former Prime Minister, Japan

  • Taizo NISHIMURO, CEO of Japan Post Holdings

  • Junichi UJIIE, Senior Advisor, Former Chairman, Nomura Holdings Inc.

  • Fumio OTSUBO, Special Advisor, Panasonic Corporation

  • Koji MIYAHARA, Chairman, Nippon Yusen Kaisha

  • Takeshi UCHIYAMADA, Chairman of the Board, Toyota Motor Corporation

  • Atsushi SAITO, Director & Representative Executive Officer, Group CEO of Japan Exchange Group, Inc

  • Kawatsura KATSUYUKI, Senior Managing Director, Asahi Group Holdings Ltd.

  • Hideto NAKAHARA, Senior Executive Vice President, Mitsubishi Corporation

  • Yoshimasa TAKAO, Executive Vice President, Sumitomo Chemical Co., Ltd

Chinese CEOs

  • ZENG Peiyan, Former Vice Premier, China; Vice Chairman, Boao Forum for Asia

  • Zhenming CHANG, Chairman of CITIC Group Corporation

  • CHEN Feng, Chairman, HNA Group

  • FANG Wenbang, Chairman, Suzhou Suqian Industrial Park Development Corporation

  • JIANG Xiasong, Hainan Grand Lecheng Development Holdings Co., Ltd

    • Xiaomin LAI, Board Chairman, China Huarong Asset Management Co., Ltd

  • LI Ruogu, Chairman and President, Export-Import Bank of China

  • LIU Chuanzhi, Chairman, Lenovo Holdings

  • MA Zehua, Chairman of the Board, China Ocean Shipping (Group) Company

  • MAO Qingguo, Chairman, China National Salt Industry Corporation

  • XU Jianzhong, Chairman, Wujin National Hi-Tech Industrial Zone Development Corporation

  • YUAN Yafei, Chairman, SanPower Group

Key Points

  • “Abenomics” has revitalized the Japanese economy but many structural/systemic issues still remain.

  • Japan-China trade has seen year-on-year declines in recent years.

  • Japan-China economic cooperation is key to regional economic cooperation.

  • Both nations should work towards leveraging each other’s strengths for economic prosperity.

The Japan-China CEO dialogue opened with Mr. Yoshio Nakamura, Vice Chairman, Director General, Kaidanren, sharing his thoughts on the various socio-economic challenges facing Japan currently. Talking about the overarching problems for Japan, Mr. Nakamura cited the aging population, access to overseas demand, recent large scale layoffs, and the Fukushima disaster, as all presenting huge challenges for the nation. He also talked about six key issues the Japanese government is currently tackling: namely, the appreciation of the Yen, the energy problem, climate and environmental issues, strict labor issues and overburden on Japanese enterprises.
With the introduction of “Abenomics”, Japan has now successfully pulled out from its long term recession and is now on the right track for economic recovery. Since its policy introduction, the country is now optimistic of a nominal growth rate of 3%, while depreciating the Yen and improving business confidence.

Mr. Yu Ping, Vice Chairman for the China Council for the Promotion of International Trade followed Mr. Nakayama, stressing the importance of the Japan-China relationship, noting that over the years the relationship has improved. However, in 2013, Sino-Japan bilateral trade volume was US$ 312.5 billion, representing a year-on-year decrease of 5.1%; China’s exports to Japan fell 0.9%, while imports declined 8.7%. In the same year, Japan's direct investment to China amounted to US$7 Billion, which represented a year-on-year decline of 4.3%. For January and February 2014, Japan's direct investment to China amounted to US$716 million, representing a year-on-year decrease of 43.6%. In contrast, global real direct investment to China has risen 10.4%; South Korea’s investment to China was 3.2 times of the amount for the same period last year; and U.S. investment in China also grew 43.3%.

Mr. Yu offered several factors for the decrease in trade volume:

  • China’s import of Japanese goods was affected by the depreciation of yen;

  • Labor costs in China have increased, hence Japan has shifted its focus to other low cost bases in Asia;

  • China's tech sector has matured and witnessed numerous innovations which have affected Japanese imports;

  • Recent political challenges between China and Japan have further influenced trade between these two countries.

Mr. Yu closed by re-emphasizing the importance of China-Japan bilateral relations in shaping economic cooperation amongst Asian countries, and the hope that the relationship will improve in the future.

Mr. Koji Miyahara, Chairman, Nippon Yusen Kaisha, urged greater cooperation between China, Japan and South Korea. Mr. Miyahara believes that through the combination of the strength of the three nations, the trio can become one of the world’s strongest economic blocs. On the subject of exploiting each countries’ strength, Mr. Takeshi Uchiyamada, Chairman of the Board, Toyota Motor Corporation offered that Japan could help China with the environmental challenges it faces to ensure the sustainable development of the Chinese economy.
Mr. Li Ruguo, President, Export-Import Bank of China, then put in context the magnitude of the trade relations between Japan and China. China’s trade volume accounts for 20% of Japan’s total foreign trade volume. He stressed that economic and trade cooperation should not be disrupted by political complications.
Chang Zhenming, Chairman of CITIC Group Corporation, shared that a recent survey among Chinese and Japanese citizens suggested that both nations are now holding less positive opinions of each other. However, the consensus between both nations is that since China and Japan are the world’s second and third largest economies, the relationship between the two countries is of paramount importance. It is Mr. Chang’s hope that improved economic cooperation can help improve the relationship between these two nations.
Mr. Junichi Ujiie, Senior Advisor and Former Chairman, Nomura Holdings, said that China needs a good macroeconomic environment for foreign companies to enter and invest in its financial sectors. He outlined two points which are hindering the development of foreign entry into the financial services sector in China:

  • the strict regulation of the capital market such as one has to apply for licenses in order to have the right to vote in A share companies;

  • securities firms’ entry to China such as the foreign securities firm establishing a joint-venture can only hold a maximum of 49% of the equity (in the case of a public company, only 20%).

Mr. Ujiie urged the Chinese government to accelerate the pace on liberalizing the capital markets/financial sector.

Jiang Xiaosong of Hainan Grand Lecheng Development Holdings Co., Ltd consider this to be a good time for companies from both nations to sit and talk about the issues related to the economic and trade relationship. He suggested that it is necessary to institutionalize the communication between the Chinese and Japanese corporations and that instead of talking, both parties should take action to improve the relationship.
Yuan Yafei, Chairman, SanPower Group, closed with the observation that there are many complementary aspects of the China-Japan relationship so when the two nations work together they can better capture opportunities. Also he hopes that Japanese corporations will not hesitate to cooperate with Chinese companies because when by outsourcing their manufacturing processes to China, they gain entry to the Chinese market as well.

The database is protected by copyright ©essaydocs.org 2016
send message

    Main page