China Direct

Japan’s Chinese lesson – diversifying only production is not enough

Europe lags behind Japan in managing economic interdependence with China. Aya Adachi and Koki Shigenoi say European companies have to look at sourcing.

The Russo-Ukrainian war and growing concern over Chinese intentions on Taiwan have triggered a serious discussion among European executives and policymakers about diversifying economic ties away from China, just as they are doing from Russia. Given the higher economic interdependence between Europe and China, European companies would be in a much more vulnerable position if they had to unwind business operations in China at the speed and severity with which they acted in Russia. Japanese companies have a similar problem, but have for a decade been pioneering ways to reduce economic dependence on their country’s big neighbour. Europeans could learn a thing or two from them.

To read this article please click here.

Our sincere thanks to Aya Adachi and Koki Shigenoi for the analysis which was published by Merics on 07 November 2022.

 

China-Japan Relations: latest insights from CSIS

 

In this episode of the ChinaPower Podcast, CSIS Japan Chair Christopher Johnstone joins Dr. Bonny Lin to discuss the current state of Japan-China relations.

Mr. Johnstone argues that Prime Minister Kishida’s policies have picked up from where his predecessors left off in terms of taking a more hardline China policy. He states that China’s deepening relations with Russia and its assertive behaviour in Asia is alarming Tokyo, weighing on Japanese public sentiment toward China, and fuelling proposals to increase defence spending.

Despite these tensions however, Mr. Johnstone notes that he has not seen significant Chinese economic coercion toward Japan in recent years, which speaks to the close economic relations that persist between the two countries. Lastly, Mr. Johnstone comments on rising Japanese support for Taiwan, discussing the growing Japanese consensus that Japan’s security and Taiwan’s are increasingly linked.

Christopher B. Johnstone is senior adviser and Japan Chair at the Center for Strategic and International Studies. Prior to joining CSIS, Mr. Johnstone served in government for 25 years in a variety of senior positions with a focus on U.S. policy toward Japan and the Indo-Pacific. He served twice on the National Security Council, as director for East Asia under President Biden and director for Japan and Oceanian affairs under President Obama (2014–2016).

The State of Japan-China Relations: A Conversation with Christopher Johnstone

Our sincere thanks to Ms. Bonny Lin, Director, China Power Project and Senior Fellow, Asian Security at CSIS for sharing this information.

 

Toyota invests $400m in Chinese self-driving auto start-up

 

 

CBI member, Toyota has announced that it has invested $400 million in Chinese technology start-up Pony.ai in a bid to develop a self-driving vehicle with connectivity services.

As a result of Toyota’s investment, the Japanese car giant will hold a 13% stake in Pony.ai, which following its latest funding round, which totalled $462m is now valued at $3 billion.

Subscribers to China Direct may remember that last September, Toyota launched its pilot self-driving car in China, Apollo, in partnership with Pony.ai. According to a statement issued by Pony.ai, the latest investment by Toyota will sustain that project while extending collaboration on mobility services.

According to a statement issued by both companies: “Strengthened ties will enable deeper integration of Pony.ai’s autonomous driving system with Toyota’s robust vehicle platforms and technologies.”

According to fellow CBI member, McKinsey, China has the potential to become the world’s largest market for autonomous vehicles. Foreign manufacturers face many market access hurdles in their efforts to enter the market, however, given that the Chinese government has only licensed the essential mapping data needed to inform an autonomous vehicle to domestic manufacturers. Pony.ai has already begun testing its autonomous vehicle software in Beijing and Guangzhou, and has licenses to further test its systems in California and Shanghai.

Fuji Xerox continues strong China Sustainability Programme

 

 

CBI member Fuji Xerox recently released its Sustainability Report 2012, which included details on the
company's strong sustainability programme in China.

China highlights included:

     • Fuji Xerox China will assign procurement personnel with basic CSR training to carry out on-site  visits of all places of business of its suppliers in China (including those of Japanese companies in  China). 
    • Fuji Xerox China decided to produce free-of-charge, large-font textbooks for students with low vision in Beijing and committed to the programme for a three-year period starting in 2010. The company 
hopes to expand its activities beyond Beijing by calling on the participation of Fuji Xerox China's 
business entities in Shanghai and other areas where there is demand.

Please click here to access the full sustainability report by Fuji Xerox.

CBI Member Fuji Xerox wins China green award

 

[Image courtesy of www.fujixerox.com]

CBI member Fuji Xerox recently won the "Outstanding Contribution Company to China IT Industry Green Development Award" from China Information World, an IT newspaper run by the China Electronic Information Industry Development Research Institute, as well as the China CSR Award, which was evaluated by more than 100 public organisations, media outlets, and specialists.

The Green Development Award was established in 2011, and Fuji Xerox (China) Ltd. was the only winner in the green development category, receiving recognition for its energy-saving products, recycling system for used products and cartridges, and "Print Green" campaign.

Also launched in 2011, the China CSR Award evaluated Fuji Xerox's environmental and educational initiatives in China, and Fuji Xerox was the only office equipment manufacturer among the 35 award-winning companies.

Please click here to read the full press release by Fuji Xerox.

Boeing's 787 Dreamliner flies to Hong Kong

[Image courtesy of www.boeing.com]

Boeing’s new 787 Dreamliner made its first commercial flight today, flying from Tokyo to Hong Kong.

With a special carbon-composite design, the Boeing Dreamliner offers a 20% improvement in fuel efficiency, an attractive proposition for airlines facing soaring fuel costs.

In additional Boeing news, the U.S. aviation giant opened a new service centre in Beijing earlier this month to provide enhanced product support to China's growing commercial aviation industry. The team based at the new Boeing China Service Centre will enhance Boeing's day-to-day support of the more than 800 Boeing airplanes currently in service in China.

Commenting on the new service centre, Lou Mancini, senior vice president of Commercial Aviation Services, said, "We are bringing Boeing's world-class airplane services and support closer to our China customers, providing them a competitive edge in their markets."

Boeing China President Marc Allen said, "The centre is another important step in the overall partnership of Boeing with China. Having a support centre in China will help us bridge language and time-of-day barriers."

Please click here for additional media coverage on the first commercial flight of Boeing's new 787 Dreamliner and here for the full press release by Boeing on its new service centre in Beijing.

The Chinese Communist Party 1921-2011

 
[Image courtesy of www.bbc.co.uk]

Today, China is holding a grand gathering ceremony to commemorate the 90th anniversary of the Communist Party of China (CPC) at the Great Hall of the People in Beijing. 

Chinese President Hu Jintao delivered the keynote address at the grand gathering, highlighting the major accomplishments of the Party over its long history.

Please click here to read more about President Hu's speech.

The CPC has seen its membership grow spectacularly during its 90-year history, and the CPC now stands as the largest political party in the world. At its founding in 1921, the Party had only 50 members, but that number had grown to 4.5 million when the People's Republic of China was founded in 1949. Wang Qinfeng, Vice-Minister of the Organisation Department of the CPC Central Committee, announced that the number of CPC members had surpassed 80 million by the end of 2010. More than three million people joined the Party last year.

Please click here to read more official coverage of the Party's 90th anniversary.

Kindly note that China Direct will be taking a break early next week returning Wed 06 July.

Finally China Direct would like to thank Ben Cooper, Policy Analyst, at CBI Beijing for preparing this note.

Japan's business environment - British Embassy Tokyo Update

 

 
[Image courtesy of www.fco.gov.uk]

The British Embassy in Tokyo has circulated a note to UK companies providing an update on the current business environment.

In addition to China many CBI members have extensive business operations in Japan and NE Asia. China Direct hopes that you find this information useful.

http://bit.ly/jgGlsw

The CBI's Chief Representative will be visiting Tokyo from 02-03 June in support of a UK business trade mission.

For information please contact the CBI's Beijing office directly on: 00 86 10 85253100

China's 2010 international trade figures - emerging markets growing fastest

 

 
[Image courtesy of www.cfoinnovation.com]

China Direct would like to share with its members China's international trade headlines and statistics released by the Ministry of Commerce on 02 Feb.

Emerging markets saw the greatest trade growth with China and can therefore be expected to secure increased Chinese investments in 2011.

Headlines: Emerging Markets

• Sino-South Africa (RSA) trade increased by 59.5%
• Sino-Brazil trade grew by 47.5%
• Sino-Russian trade expanded by 43.1%
• Sino-India trade up 42.4%
• Trade with ASEAN up 37.5%

Headlines: Developed Markets

• Sino-EU trade grew by 31.8%
• Sino-Japan trade grew by 30.2%
• Sino-US trade increased 29.2%

Headlines: Key Trade Partners & Export Markets

• Top trade partners in 2010: EU, USA & Japan
• Top trade partner and export destination: Japan, Republic of Korea, ASEAN, Australia & RSA
• Second largest trade partner and export destination: EU
• Second largest business partner and third largest export destination: USA
• Total imports/exports: 2.97 trillion U.S. dollars in 2010, up 34.7% on 2009

Rare Earths - significant disruptions to US supply chain by 2012?

 

[Image courtesy of www.seekingalpha.com]

China Direct's Washington DC office recently gauged the mood amongst business and academia at a Rare Earths Event at the Centre for Strategic & International Studies (www.csis.org).

This is what they ascertained:

David Sandalow, Assistant Secretary for Policy and International Affairs, US Dept of Energy, presented highlights from the recent DoE report, Critical Materials Strategy 2010 (executive summary attached below):

• Rare earth material are not rare. They can be found all over the globe. However, China currently represents 95% of production.
• MolyCorp’s Mt. Pass mine in California just got its permits and should start producing in 2 years.
• Short term there is a risk of supply disruption for a few specific elements.
• Long term there will be an increased demand for rare earth materials but there will also be breakthroughs in technology that will allow man-made substitutes to be used.
• Rare earth materials only represent a small fraction of the total cost of many products (esp. Cars). Therefore a price rise in materials will not greatly raise the overall cost of the product. This situation will not send the necessary market signals to investors to increase domestic production.

The second panel consisted of rare earth investment consultants Anchor Group, the Chief Scientist for materials from GE, and the DC Rep of Japan Oil, Gas and Metals National Corporations (JOGMEC).

• China controls the rare earth market for at least the next five years.
• Significant disruptions to the US supply chain of rare earth by 2012 is highly likely. 
• Many end users do not realize that they will soon face a rare earth minerals problem.  
• Man-made ‘material substitution’ could reduce end users' dependence on rare earth by 80%, recycling could add an additional 10%.
• China’s export quotas of rare earth have increased by 40%-70% over the past year.

For an Executive Summary please click below:

Download Critical_Materials_Summary (2)