China and Japan create a stronger economic partnership
The year 2017 marks the 45th anniversary of China-Japan bilateral diplomatic relations. The two countries shared trading and economic past has given rise to a prosperous future and a beneficial trading relationship.
With all major sectors continuing to experience growth in the Chinese market, it is difficult to find a Japanese company that has yet to establish itself in China. The Shanghai- Japanese Commerce and Industry Club (SJCIC) was created to assist the growing number of Japanese companies active in China, especially in the Shanghai area. It currently has over 20,000 member companies.
"Our goal is to support our Japanese members in all aspects of their business here in China."
— HIROSHI MURAKAMI
and Industry Club
“Our goal is to support our Japanese members in all aspects of their business here in China,” said Hiroshi Murakami, SJCIC chairman. “We help provide a better business environment, as well as strengthen the economic relationship between China and Japan through the success of our member companies.”
China alone contributed over 39 percent to the world’s GDP growth last year. The world’s largest exporter, it sends $167 billion in goods annually to Japan, China’s third-largest trading partner. On the other hand, Japan — the fourth-largest exporter in the world — ships $131 billion annually to China, its largest trading partner.
In addition to Japanese investment and trade, companies around the world consider China to be a frontier growth market. With an affluent middle class and growing desire for foreign-made products, China continues to offer global companies the opportunity to boost revenues. Its automotive, information and communication technology and e-commerce sectors continue to see increased foreign investment in both tier-one and tier-two cities across the country.
The Chinese government has recently implemented several policies to better position the country on the global stage. Initially unveiled in 2013, its “One Belt, One Road” initiative (also known as the modern-day “Silk Road”) is gaining traction as a new trade route. It is planned to more solidly connect China to Europe in the 21st century, and allow goods to be transported via rail in a fraction of the current weeklong time frame.
A second initiative, the “Go-out Policy” (also known as the “Go-Global Strategy”) was originally designed by the Chinese government in 1999. It continues to encourage privately held and state-owned enterprises to increase their foreign interests. Originally designed to lessen upward pressure on the renminbi by deploying huge amounts of foreign reserves overseas, the strategy had a secondary benefit in providing Chinese executives with international business experience. It has proven to be an asset that has empowered public and private sector management across China.
As China transitions from the world’s factory to the world’s largest sales market, companies from Japan and around the globe are positioning themselves to provide more products, services and solutions that the country demands.
“While China’s economy is slowing, it is still growing at 6 to 7 percent per year, which is more than most countries,” concluded Murakami. “China can maintain this and still provide great opportunities for Japanese companies. We hope more Japanese companies will come to China to do business and create a stronger economic partnership between our two countries.”