Japanese Investment in China: How improved relations will impact business
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Premier Li's visit aims to improve bilateral ties, including that of trade. To get a sense of how improved ties could affect the business community. Our reporter Guan Yang traveled to Dalian, a city in China's northeast that has become a popular investment destination for Japanese companies.
Takashi Okubo - the director of one of the world's leading linear motion manufacturers, has just celebrated his 62nd birthday. Every morning, he likes to walk around the production plant. Over the past 18 years, his company has evolved from basic assembly lines to a large transnational corporation in Dalian.
TAKASHI OKUBO, DIRECTOR THK (CHINA) CO., LTD, DALIAN "Expansion in the Chinese market has been our top priority, especially after the Made in China 2025 plan made its debut. The decisions we made here center around China's big picture."
Over half of the Japanese firms that have expanded overseas are based in China, and many of these companies are saying that they are more profitable in China than back home. It is true that business goes up and down, so do political ties between countries. The president of another Japanese firm in Dalian thinks the future success of Japan-China business relations is largely dependent on the direction of the Chinese economy, next to political factors.
AKIRA NODA, PRESIDENT OMRON (DALIAN) CO., LTD "We expect to see some good results from the high-level talks between the two countries, it is important for the business environment. At the same time, we will focus on shifting from cheap labor to talent cultivation of Chinese employees."
GUAN YANG DALIAN "Over the past few years, China-Japan relations plummeted over territorial disputes in the East China Sea and Japan's attitude to its wartime past. This was not an ideal environment for Japanese businesses looking to expand in one of the most profitable markets in the world."
There are over 1,800 Japanese companies that have set foot in Dalian since China's reform and opening up. And being at the frontline of Sino-Japan economic cooperation, what happens here can often send strong signals in terms of business fluctuations.
SONG FANG, VICE DIRECTOR BUREAU OF COMMERCE, JINPU NEW DISTRICT, DALIAN "The difficult times were around 2012, Japanese companies here seemed to hold back their expansions and were cautious about their operational strategies. But from last year, the situation has improved quite a lot."
As Chinese Premier Li Keqiang attends talks in Tokyo, marking the first official visit by a Chinese premier to Japan in eight years, Japanese companies that have performed well are deciding to maintain or even further expand their presence in China, according to a survey by the Japan External Trade Organization.
MATSUYAMA MASATO, CHAIRMAN JAPANESE CHAMBER OF COMMERCE & INDUSTRY, DALIAN "Absolutely, China has been a profitable market for Japanese companies, and a crucial part of their overseas operations, bilateral ties can never be overlooked."
GUAN YANG, CGTN.