By Gabby Chen

(JW Insights) Apr 20 -- The president of the Japanese Chamber of Commerce and Industry in China (CJCCI) Tetsuro Homma urged Japanese companies to regard China as an "innovative power" and "engineering power" rather than merely a "manufacturing country" or "consumer country," reported China's English newspaper Global Times on April 19.

Tetsuro Homma also serves as the executive vice president of Panasonic Corporation. He made the remarks during a press conference on April 18.

Source: Global Times Website

To survive in China's rapidly evolving landscape, characterized by an emphasis on "innovation power" and "engineering power," the chamber must consider how best to assist Japanese companies in conducting business activities in China, Homma said.

In response to the Global Times' query about the potential impact of Japan's export restrictions on chip equipment on Japanese companies' operations in China and calls for decoupling the industrial chain with China, Homma admitted he was not yet familiar with the relevant policies. However, he expressed a willingness to help relevant companies establish a communication platform between Japan and China after thoroughly reviewing the details.

"All member companies of the chamber are all interested in contributing to the economic development of the two countries," said Homma.

Homma pointed out that to maintain their competitive edge and achieve sustainable growth in China, Japanese companies cannot rely solely on past approaches and ideas.

He noted that it has been 30 years since Japan's manufacturing industry first invested in China. Over this period, labor-intensive factories have gradually been replaced by capital-intensive ones, including those producing automobiles, automotive parts, materials, chemicals, electronic components, and production equipment.

Homma emphasized that with the frequent iteration of new business models, such as smart IoT appliances and mobile e-commerce, the Chinese market has become highly competitive on a global scale.

There are still many business opportunities in the Chinese market. China's reform and opening up has been going on for 45 years, and it is an undeniable fact that Japanese companies have benefited from this process of growth, said Homma.