The 9th World Chinese Entrepreneurs Convention, and Foreign Investment into Japan

September 19, 2007 (Wednesday)

The 9th World Chinese Entrepreneurs Convention was held September 15th-17th in Kobe and Osaka. The World Chinese Entrepreneurs Convention, established in 1991, is a gathering of ethnic Chinese entrepreneurs from around the world. Held for the ninth time this year, the convention is an opportunity for ethnic Chinese businesspeople active around the globe to come together, and the goals are to establish global economic networks and stimulate the economic activity of ethnic Chinese living abroad. It also aims to promote exchange and business cooperation among ethnic Chinese, and contribute to the business community of the host nation as well as exchange with local citizens.

The convention is held in a major global city once every two years. The last convention was held in Seoul, and this year Kobe and Osaka were the host cities. Manila will host in two years with plans for Singapore for the following round. This year about 3,000 ethic Chinese business people converged on Kobe and engaged in active exchange through lively discussion on a variety of topics.

As chairman of the Japanese government’s Japan Investment Council, I attended all forums regarding investment into Japan, gave a keynote speech, and served as moderator for a panel discussion.

Compared to other major countries, there is a heavy imbalance in Japan between foreign investment and inward investment. Inward investment from abroad is being strategically utilized in both developed countries in the west and rapidly developing Asian countries such as China. The amount of inward investment compared to the GDP in many countries is in the 20%-50% range, but the percentage has only just reached 2.5% in Japan. It is important for developing countries to take advantage of investment from abroad and accelerate development. It is also important, however, for developed countries to usher in fresh capital, management styles, technology, and personnel to breathe new life into their matured economies. The Koizumi Administration gave particular attention to this issue, and in five years realized its goal of doubling the inward investment to GDP percentage. The succeeding Abe Administration also set a goal to redouble the percentage in five years.

The objective of this year’s convention was to convey to the ethnic Chinese businesspeople gathered in Kobe that Japan is making diligent and serious efforts towards the infusion of investment into Japan. Kobe is a representative port city of Japan and is blessed with a rich culture and a variety of business resources. It also has active exchange with China, beginning with its China town. Kobe is a leading city in the Kansai region, but compared to the Tokyo metropolitan area the economic activity of the Kansai region is in greater need of revitalization and strengthening. With this in mind, attracting investment from ethnic Chinese businesspeople active in the rapidly developing China or elsewhere has an important meaning.

Ethnic Chinese command formidable economic strength. This strength has been overwhelming in Southeast Asia for some time, and recently ethnic Chinese businesses have expanded in Europe, North America, Middle and South America, and even Africa. In Japan, 700,000 ethnic Chinese play active roles in the various sectors of society. Businesses started by ethnic Chinese living in Japan have increased, including more than a few listed companies. Ethnic Chinese should be emphasized when it comes to attracting foreign investment into Japan, and networks of ethnic Chinese residing in Japan can be utilized to this end.

This year’s World Chinese Entrepreneurs Convention was thus significant in a variety of different ways, with many of the topics discussed coming to fruition. It is my hope and expectation that this will lead to even further development in Japan and Asia as a whole.