Japanese companies, industry groups optimistic about China’s economy, eager to exploit new opportunities

Senior representatives of Japanese companies and industry groups have expressed their optimism about the future outlook for the Chinese market, as well as the potential for new opportunities.

Despite the recent "peak China" claims in some areas as well as talk of "decoupling" or "de-risking" by certain politicians from the US and Japan, Japanese business representatives told the Global Times about their remaining confidence in China and commitment to the world's second-largest economy.

They are also optimistic about China's new-energy vehicle (NEV) industry, which they said offers impetus in the economic recovery. Japanese companies should cooperate more with their Chinese counterparts in the booming field, they said, despite the intensified moves by the US to target the Chinese NEV sector.

Speaking at a meeting for the media held by the Japanese Chamber of Commerce and Industry in China on Wednesday, Tetsuro Homma, executive vice president of Panasonic Holdings, who is also chairman of the Japanese Chamber of Commerce and Industry in China, told the Global Times that China's GDP is four times that of Japan's, with a population of 1.4 billion. "Japanese companies cannot and should not ignore the importance of the Chinese market in their global strategy," he said.

Japanese companies operating in China are also full of expectations for the future development of the Chinese economy, Homma said.

The Chinese market has tremendous potential and offers various opportunities, particularly in industries such as healthcare and elderly care, where there is significant complementarity between China and Japan, the chamber head said.

He gave the example of how Panasonic Holdings is closely collaborating with Chinese robotics company Siasun, with their products and solutions being used in Panasonic's overseas factories, such as those in the Czech Republic.

The Japanese company has also been expanding in China. Since 2020, Panasonic has initiated new projects at 18 business bases across China, including strengthening R&D capabilities and expanding production.

Last year, the firm launched three projects in China, with plans for more in 2024, the Global Times learned.

It has also signed contracts to establish semiconductor material production facilities in Suzhou, East China's Jiangsu Province, and has partnered with innovative Chinese enterprises in Beijing.

"We are continuously seeking investment opportunities in China," Homma said.

China is not only a large market and a manufacturing powerhouse but also an innovation and engineering powerhouse, said Homma, noting that at present, out of around 50,000 Panasonic employees in China, over 10,000 are technical research and development personnel, and the vast majority of them are local employees.

Koichiro Sakai, general manager of the Risk Management Department of Sumitomo Corporation China Group, told the Global Times on Wednesday that the recent surge in copper prices in the Chinese market reflects, to some extent, rising demand and signs of recovery.

Additionally, China is actively promoting investment opportunities, and there's a noticeable enthusiasm from both central and local governments in welcoming foreign companies including Japanese companies, encouraging them to invest and develop in China, said Sakai.

Shinji Nakahara, senior vice president of All Nippon Airways (ANA), told the Global Times that the market in China has tremendous potential and will further improve in the future.

Currently, ANA flights between China and Japan have recovered to slightly over 50 percent of pre-pandemic levels, Nakahara said. "Moving forward, we will intensify our efforts to restore our routes, facilitating travel between the two countries," he added.

Japanese businesses are optimistic about China's new-energy sector, which some described as a new impetus for economic development.

"Despite challenges in some sectors like real estate, I think the Chinese economy this year is doing well, partially because of the booming Chinese car export industry, particularly the NEV sector," Masami Miyashita, general manager of the Beijing Office of the Japan-China Economic Association, told Global Times on Wednesday.

The Chinese car export market is booming and many Japanese companies want to tap into the rising opportunities by building up stronger ties with Chinese car companies in the supply chain, Miyashita said.

Emerging sectors such as NEV present significant market development prospects, Sakai also said, expressing optimism about the emerging business opportunities.

Amid certain claims about "overcapacity" from the West, some Japanese business representatives told the Global Times that there were times in the 1970s when Japanese car companies were exporting "a lot" to the US, which was also described as "overcapacity," and certain protectionist measures were taken in response, but the Japanese companies overcame it. While the circumstances may be different, they believe that Chinese companies will also overcome this situation.