GlobalAutoTV
Click to watch Edward Carpenter -
Click to watch Edward Carpenter -
asia resources


Need an office in Asia? Office suites, meeting rooms, virtual offices, network access



free downloads
ASIA: "Asia Pacific Law @ Work" newsletter (Jan. 2010)

ASIA: "Asia Pacific Law @ Work" newsletter. 11-page newsletter by Baker & McKenzie.

proceed to download
eJournals




back to index backASIAtalk July,  2005


Don't put all eggs in China basket: METI

Japanese companies should seek to establish a regionwide network in East Asia to maximize their business efficiency, turning not only to China but also to the 10-member Association of Southeast Asian Nations as their production bases, a government white paper on trade said Friday.

The annual paper by the Ministry of Economy, Trade and Industry called on Japanese businesses to avoid relying only on China, because labor costs do not vary greatly between the country and ASEAN, and various business risks exist in China.

"Japanese companies could face obstacles to their businesses which cannot be seen in matured markets, such as low levels of compliance and structural problems" in China, the 2005 White Paper on International Trade and Economy says. The document was approved by the Cabinet earlier in the day.

The report singles out as business risks the spread of pirated or counterfeit items in China, outflows of knowhow or technology from Japanese enterprises, expected rises in labor costs and energy shortage caused by rapid economic growth in the country.

The paper also cites health risks that became evident in 2003 with the SARS outbreak, the massive anti-Japanese rallies and boycotting of Japanese goods in April over Japan's history textbooks, Japan's ambition to become a permanent U.N. Security Council member and other bones of contention.

As structural problems, the report indicates overheating in investment, income gaps between farmers and urban dwellers, a high unemployment rate and uncompleted reforms of state-owned companies.

The report also proposes that Japanese firms establish close ties with India to include the rising economy in the proposed East Asia-wide network.

"For India, East Asia has gained importance as a trading partner. The country, which has been discussing a free-trade agreement with ASEAN, has a potential to become a major destination of East Asian exports as well as a supplementary member in the regional production network," the paper notes.


Source: The Japan Times Online
- GAI

previous page

go top



search our site


Loading

ASIAtalk

Other articles from the same issue (July,  2005).

Workaholism in Asia
play read on

The practice of low-cost country sourcing (LCCS) is accelerating
play read on

Increasing your value: An automotive global supply approach
play read on

A foreign perspective on China's ports and shipping
play read on

With sales rising 30% a year, Indian part maker investments will top $1 billion
play read on

Thailand: What are the legal requirements for establishing a company?
play read on

Establish a business presence in Japan in one of three modes
play read on

RMs can help thwart kidnappers
play read on

Don't put all eggs in China basket: METI
play read on

Protect company trade secrets from in-house thieves
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120