Business green laser pointer cooperation can improve Sino-Japanese ties

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Business green laser pointer cooperation can improve Sino-Japanese ties
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Business cooperation can improve Sino-Japanese tiesPublished: 24 Nov 2009 13:02:01 PST

By Deng Jingyin

China and Japan should open a dialogue on energy and the environment to create new opportunities for bilateral economic cooperation, business experts from the two countries said at the Sino-Japanese Entrepreneurs Forum Tuesday.

The forum, attended by 60 representatives from both countries, was co-hosted by the All-China Youth Federation, the Japan Junior Chamber of Commerce, the China Youth Daily and the Mainichi Daily News of Japan.

Japanese ambassador to China Yuji Miyamoto urged the two countries to expand domestic demand and cooperate on energy conservation and environmental protection.

Zhang Jifeng, a scholar from the Institute of Japan at the Chinese Academy of Social Sciences, said at the forum that energy conservation and environmental protection should be the focus in East Asia.

"Japan should expand its investment in China, which will create a win-win situation for both countries,"he said.

Japan’s investment in China has dropped in recent years, especially after the financial crisis struck.

China is also lagging behind India in receiving direct investment from Japan. Figures show that Japan’s direct investment in China recorded a 3.2 percent year-on-year drop in 2008, amounting to 679.3 billion yen ($7.64 billion). The country’s investment in India reached 809 billion yen ($9.10 billion) last year, an increase of 420 percent.

Half of the investment from Japan into China goes to electrical equipment and transport machinery.

Zhang said that Japan’s investment projects have significantly reduced in these two sectors since 2006, which resulted in a decline of its total direct investment in China.

Changes in China’s domestic investment environment has also contributed to the drop.

Experts at the forum said increasing land prices, labor shortages, rising salaries and yuan appreciation have all affected foreign investment.

"Enterprises need to communicate more with each other on core issues like energy conservation,"said Yuji Kiyokawa, chairman of the Japan-China Economic Association.

He added that companies could use channels of communication to tackle problems facing the world economy, such as the financial crisis, shrinking market demand, and resource shortages.

New business opportunities will be created through communication, he added.

Kisaka Toshiro, president of Matsushita Electric, said policy restrictions, such as barriers in product manufacturing, sales and remittance, should be lifted to facilitate cooperation among the two countries.

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