Impressions of the 18th Biannual Fujitsu Research Institute Forum
February 28 (Tuesday) 2006
On January 25, 2006, FRI held its 18th Biannual Fujitsu Research Institute Forum. I would like to take the time here to comment on the event and its findings.
The overarching theme of the forum was “The Japanese Economy: Solutions to Internal and External Issues”. The forum was divided into two parts, with researchers in the first half dealing with domestic problems and those in the second half tackling international issues.
The first domestic topic raised was restructuring the housing industry. Housing is the most vital asset for both individuals and the country as a whole, but the Japanese housing market is fraught with many defects and its assets are not being sufficiently utilized. This forum featured two reports on issues facing structural reform of the housing industry.
Research Fellow Hidetaka Yoneyama presented the first report entitled “The End of Condominiums: Problems and New Supply Methods”. Many of Japan's condominiums are decades old and are falling into disrepair and dilapidation; if the situation is left as it is, many of these areas will descend into slums, and there is a strong fear that the danger of collapse and other grave issues will grow. Through keen analysis Mr. Yoneyama offered several propositions involving rational, joint efforts whereby both the owners and renters cooperate to renew deteriorating condominiums. Following this, Research Fellow Reiji Kajiyama delivered a presentation on “The Road Map for Lumber-related Industries to create Added Value”. In Japan, forests are left unused and, as the basic materials for housing, there are major problems regarding the use of domestic lumber and the protection of forests. However, soon much of the postwar forestation will begin reaching reasonable thickness, and their economic value is growing. Mr. Kajiyama offered that Japan should take advantage of this timing and pursue forest protection and structural reforms of the lumber market, which will make it possible to pin new hopes on the future of the lumber and housing industries.
The forum's second half tackled the most pressing problem of all the international issues facing Japan - the relationship with China. FRI's three Chinese researchers presented their views on how Japan should capture the Chinese market.
Kicking off the second half was Senior Fellow Yan Zhu, who spoke about “The Present Conditions and Issues regarding the Structure of Foreign Dependence of the Chinese Economy”. China's foreign dependence has grown deeper as its economy has developed, triggering trade friction with various countries in resources and other sectors and becoming a hindrance on the economy's growth. In order for China to maintain an environment necessary for sustainable growth it is critical that its domestic economic industrial structure be improved. Mr. Zhu's fascinating report proposed that Japanese investment companies must also alter their investment strategies appropriately to adapt to changes in the Chinese economy.
Senior Research Fellow Long Ke was the next to present, discussing “New Choices for Japanese Business Investment in China”. Mr. Ke's report pointed out that while China's economy is continuing to grow rapidly and is attracting top priority for investment from foreign companies, within China there exist domestic structural problems and growing fears of sustainability and business risks. Mr. Ke offered an important and broad-minded announcement that, as a result, Japanese businesses and other foreign companies should alter their international investment strategy to focus not just on China, but also Vietnam, India, and other countries in order to create a diversified portfolio with a broader scope.
Lastly, Senior Research Fellow Jianmin Jin presented on “New Developments for Marketing Strategy in China”. The Chinese market poses many risks for foreign companies investing and making inroads in the region. To respond to these risks appropriately it is critical for foreign companies to make active efforts to be accepted and understood by the Chinese people. In other words, corporate communication is vital for foreign companies to succeed in the Chinese market. Through a wealth of case studies, Dr. Jin offered valuable insights and highlighted various points where Japanese companies must improve.
This forum was a departure from previous formats in that outside presenters were not invited, and thus showcased the views of FRI's researchers regarding fundamental internal and external problems. The feedback from the audience was very positive, and many responded that the forum's research presentations based on specialist studies were very beneficial.