Japanese White Paper Suggests Aggressive Approach to Emerging Countries

Japanese Cabinet approved Trade White Paper 2010 on Friday, which recommends Japanese manufacturing industry should aggressively approach volume markets in emerging countries, especially in Asia. The White Paper points out Japanese material and component makers should accelerate establishment of overseas sites when Japanese manufacturers are shifting to local productions and increasing local procurement ratio.

The White Paper says Japanese manufacturers should seek favorable business partners at overseas through M&A or alliances with local companies. In India, Japanese major steel makers have already concluded alliances with local major steel makers. As to raw ferrous materials, Japanese mills acquired shares of Brazilian material supplier through collaboration with South Korean and Taiwanese mills. However, overseas steel makers such as Arcelor Mittal are even precedent in resource strategies.

In Asia, wide-area development projects are progressed such as Mekong-India Industrial Corridor. The White Paper suggests Japan should appeal its technologies and standards for infrastructure constructions, industry encouragement or trade systems. Japanese government considers advancement of infrastructure businesses in cooperation with domestic private companies with advantage of environmental technologies.

The White Paper regards integration of East Asian economy as a key for Japanese growth. Consequently the government helps private companies’ activities through free trade agreements especially through Asia Pacific Economy Cooperation Conference.

The Cabinet also approved Japanese basic energy plan on Friday along which the government tries to cultivate new supply sources of coking coal. The government enhances partnerships with Russia, Mongolia or Southeast Africa, the new coal producers, by financial and other governmental supports. As to thermal coal, the government seeks multilevel partnerships with Australia, Indonesia, China or Vietnam, the major producers.