Mr. Toshihiro Ueda, former Executive Fellow at AGC, was invited to speak on the above topic at Keidanren Kaikan. There was a lively exchange of views with a total of forty-four participants.

For Japan, China remains one of the most critical markets alongside the U.S., serving as a “microcosm of competition” where major global players converge in terms of innovation and standardization. For Japanese companies to achieve good results in the fast-changing Chinese market, it is essential for them to become deeply rooted “insiders” and establish a position where they are protected within Chinese society.

To achieve this, Japanese companies should demonstrate their commitment to contributing to China’s national policies and the resolution of its social issues, while leveraging local staff and their networks to build strong relationships of trust with the Chinese government and media. In terms of public relations strategy, companies should communicate a consistent narrative of how they have contributed to China’s development from the past to the present, and moving into the future. Proactive communication serves as a shield to protect both the organization and its individuals from risks.

Deep commitment from top management or business leaders is essential in making management decisions within the highly variable Chinese market. Companies that succeed in China grant more autonomy to their local operations based on actual market conditions.

When it comes to political issues between Japan and China, there are limits to what individual companies can do on their own. The business and industrial communities must speak with one voice and urgently create momentum toward improving Japan-China relations and creating a favorable business environment.