Japan may become a "practice dojo for Chinese technology companies to go overseas"
The dividends from the RCEP taking effect are continuing to be released. Data show that in the first half of 2022, my country's total imports and exports from the other 14 RCEP member countries amounted to 6.04 trillion yuan, a year-on-year increase of 5.6%, accounting for 30.5% of my country's total foreign trade imports and exports. In particular, RCEP has brought about a free trade agreement arrangement between China and Japan, providing new opportunities for deepening economic and trade exchanges between China and Japan. According to data released by the China Council for the Promotion of International Trade, in terms of certificate of origin visa destinations, Japan has ranked first for six consecutive months, and the monthly visa amount accounts for more than 90%.
"The entry into force of RCEP has created better conditions for more foreign-funded enterprises in the region to enter the Japanese market." Jin Jinghao, investment director of the Beijing Representative Office of the Japan External Trade Organization (JETRO), mentioned in an exclusive interview with a reporter from China Trade News that Japan Governments at all levels and the economic community attach great importance to the opportunities brought about by the entry into force of the RCEP.
The data shows that in 2021, the stock of direct investment in Japan by countries around the world will be 40.5044 trillion yen, an increase of 316.4 billion yen year-on-year; among them, Europe will account for 44%, Asia will account for 24%, and North America will account for 23.4%. For the first time in 2021, Asia's share will surpass that of North America, showing that investment in Japan is increasing across Asia. According to the calculations of the Japanese government, RCEP will bring an economic increase of 15 trillion yen to Japan, which is expected to increase Japan's GDP by 2.7 percentage points and increase 570,000 jobs, which will help Japan's economic recovery.
Therefore, the Japanese government has actively implemented the relevant provisions of RCEP, and relevant departments have also set up special RCEP websites to publish interpretation articles. JETRO has also taken active actions to grasp the difficulties and pain points of Japanese companies in using RCEP in a timely manner by surveying companies, and carry out training and consulting work on the interpretation of RCEP to help Japanese companies, especially small and medium-sized enterprises, make good use of RCEP, make full use of it, and make full use of RCEP. terms.
And assisting Chinese companies, especially technology companies, to invest in Japan is the focus of Jin Jinghao and his colleagues across China. He introduced that the industries that Chinese companies invest in Japan are mostly manufacturing and infrastructure, ICT, life sciences, and services, and more than 70% of Chinese companies have established subsidiaries (Co., Ltd.) in Japan. In terms of the functional positioning of permanent establishments in Japan, the companies that expand the Japanese market by setting up sales outlets are the most numerous, followed by the establishment of R&D institutions to solve some technical issues with the help of "external brains". In his view, Chinese companies' investment in Japan has ushered in a rare opportunity, because the exchange rate of the yen is very favorable for Chinese companies, and the demand for technology empowerment from all walks of life in Japan is extremely hot.
Jin Jinghao also said that Japan has recently increased the layout of DX (digital transformation), the purpose is to help all walks of life in Japan improve efficiency and reduce dependence on labor, "Chinese companies have certain advantages in this regard, such as accumulating a large amount of data and Success stories, high cost performance, etc.”
At present, many powerful Chinese technology companies will consider the development opportunities in the Japanese market once the time is ripe. The official website of JETRO introduces the cases of dozens of powerful Chinese technology companies setting up sales or R&D outlets in Japan with the assistance of JETRO. Many Chinese technology companies have successfully won orders from Japanese companies, and some companies have ranked first in Japan's market share for several consecutive years.
Jin Jinghao said that in addition to enjoying the preferential policies provided by Japan, Chinese companies' investment in Japan has the following benefits:
Japan has a relatively large demand for technology empowerment. For example, with the intensification of the aging of Japanese society, in addition to reducing Japan's dependence on labor, it also provides a lot of development opportunities for related industries such as the aging industry, such as auxiliary services that require robots, digital means empowerment, etc.
Chinese companies can use Japan as a springboard to better enter the international market. Japan has signed free trade agreements or economic partnership agreements with dozens of economies in the world, including North America, the European Union, the United Kingdom, etc. Setting up companies in Japan helps to enter the markets of various countries in the world; and Japanese brands enjoy a high reputation in the world. Therefore, companies registered in Japan can make good use of the Made in Japan signboard.
The product or service of the enterprise can get better promotion. Although Chinese companies have a lot of data or cases, if they set up a company in Japan, combined with the more detailed "polishing" of the Japanese, the quality of products or services can be improved. Because Japanese consumers or users are more picky, they will also ask many detailed questions, which can be used by Chinese companies to improve their products and services, which will make their products and services more internationally competitive.
Can deeply interact with the Japanese market. After registering a company in Japan, Chinese companies can more easily participate in professional exhibitions held all over Japan, and are eligible to join relevant industry associations in Japan, thereby promoting Chinese companies to obtain more first-hand information and communicate with the international market and the Japanese market in a timely manner. , and can also enjoy various support policies provided by governments at all levels in Japan in a timely manner.
Another trend to watch is that Japan's advantage in labor costs is emerging. Although the cost of human resources in Japan is still higher than that in China, its growth rate for many years is very low, almost a slightly upward curve, while the cost of human resources in China is growing very fast. Many first-tier cities in China have already "crushed" many places in Japan. Therefore, Chinese technology companies can consider placing their R&D departments in Japan, and combine the advantages of talents in China and Japan to overcome some scientific and technological issues.
"We attach great importance to cooperation with local governments in China, and promote technology companies from all over the world to invest in Japan. Local governments can choose some 'seed players' to invest in Japan to achieve 'promotion through investment'. These companies are actually the business environment of a certain place in China. Business cards and excellent cases in Japan, through mutual visits of these companies and in-depth exchanges with all walks of life in Japan, will help attract more Japanese companies or other foreign companies to pay attention to the local market, and then come to the local market to invest and start business." Jin Jinghao said that from According to the analysis of the above aspects, Japan may become a "practice field" for Chinese technology companies to go overseas. Especially after the RCEP comes into effect, technology companies can use relevant provisions to actively deploy in Japan and optimize the layout of supply chains and industrial chains.