August 1, 2011|China
Sumio Takagi
Former Chief Representative of Shenyang & Harbin Liaison Office, Itochu Corporation
Leaving the present time for seven years before, in 2004 there were many visitors to northeastern China from Japan, including local authorities, economic bodies and firms examining business expansion. The only-just-opened Itochu Shenyang Liaison Office was also favored with a great many visitors. All as one had the ardent feeling of wanting to confirm with their own eyes such things as the targets and prospects for the Northeast revitalization policy which was launched in 2003, and the advantage as an investment destination.
From then on, for the six years that I stayed there, there has been no let up for this course of events, yet the taking of the steps toward the opening of a liaison office and the realization of investment business was very slow. There has been, however, an increasing trend for expanding Japanese-affiliated companies coming here to Shenyang and Changchun, and the Japanese Associations of both places are bustling with new members.
At the Japanese companies expanding overseas the degree of the contribution to income from overseas business has been increasing. More than half of that is made up by Asia, and within that China’s share has been increasing rapidly. Recently, at the seminars to explain the investment situation for each country that the economic bodies of Japan organize, interest has been rising in emerging countries such as India and Vietnam, yet the idea that “next after China is China none the less” is also often heard. Along with the momentum toward a review of the systems of production from the global standpoint of survival after the Great East Japan Earthquake, it is expected that more than ever intense interest will be drawn to northeastern China also.
I explained the local situation with eagerness to the visitors to the Shenyang Liaison Office. During this, what had everyone say “Of course! The scales have fallen from my eyes” was the change of view from looking at the map upside-down.
In addition to getting a hold on the overall picture—such as industrial trends for northeastern China in its entirety and the capabilities of partner firms, and the situation of the upgrading of all forms of infrastructure, including transportation—we are developing a variety of business schemes. Regarding Shenyang and Harbin, where we started office organization in 2004, we changed the form from offices to company branch offices, and became able to undertake trade operations domestically and internationally. There was the sense that finally we were able to stand alone, without relying on money from the parent company (headquarters). We had to focus our sights on highly profitable and speedy matters, but we are aware that northeastern China, which is blessed with all kinds of resources, is a treasure trove of business opportunities.
For China’s Northeast the system of the public-sector leading the private-sector is extremely noticeable. The effort of the people in the public sector aiming toward an economic rise is really worthy of admiration. With the cooperation of the public sector, Itochu is selecting good partners, and is continuing its focus aiming at the fruition of projects.
For the development of northeastern China, the cultivation and putting in place of a distribution network is an urgent task. That will continue to lead to benefits for the Tohoku and Hokkaido regions of Japan. The Ministry of Land, Infrastructure, Transport and Tourism is focusing on the upgrading of Japan Sea hub ports, and the present detour route of the Port of Dalian suffers from a great handicap in terms of transportation distance. Currently, triangular routes linking ports on the Japan Sea coast with the ROK and Russia have commenced, but there is also the lack of reciprocal cargo and the inconvenience of Russian customs clearance, and it appears that it will still take time to show an active situation.
Meanwhile, China’s Dalian Chuangli Group, a Chinese private-sector firm, has begun Japan Sea trade, making a leasing arrangement for Rajin Port in the DPRK, and in addition Jilin Province has also leased Rajin Port, and is sending by sea low-calorie coal from Hunchun for heating use. China is utilizing Rajin Port as a hub for Japan Sea trade, and it appears that Russia and the ROK will also undoubtedly follow. While it would be ideal if Japan utilized the port and were able to open a breathing hole into China’s Northeast, the large wall of the normalization of relations with the DPRK is blocking the way.
[Translated by ERINA]