Comprehensive study regarding South China Economic Area ---Comparative Study on Chinese and Japanese Investment Patterns
Grant-in-Aid for General Scientific Research (B)
|Allocation Type||Single-year Grants|
|Research Institution||The International Center for the Study of East Asian Development|
KATSUHARA Takeshi The International Center for the Study of East Asian Development Deputy Director and General Manager of Research Department, 副所長・兼研究部長 (30224471)
INAGAKI Kiyoshi Mitsubishi Research Institute, Economic Research Department Chief Researcher, 経済調査部, 主任研究員
王 効平 財団法人国際東アジア研究センター, 研究員 (50223706)
|Project Period (FY)
1991 – 1992
Completed(Fiscal Year 1992)
|Budget Amount *help
¥800,000 (Direct Cost : ¥800,000)
Fiscal Year 1992 : ¥800,000 (Direct Cost : ¥800,000)
|Keywords||South China economy / Dynamism / Guangdong Province / Industrial structure / Chinese capital / Human network / Japanese capital / Business with China / 華南 / 華人資本 / 日系(日本)資本 / 香港 / 経済特区 / 沿海開放地域|
Objectives of this project are 1) to analyze the dynamism of South China Economy and the shift in its industrial structure, 2) clarify the process of Chinese investment, investment and management patterns and 3) investigate differences between Chinese and Japanese business styles and their background factors.
Behind the dynamic development of Guangdong Province is the accelerating pace of industrialization due to the favorable interrelation between export and investment. In particular, through the favorable cycle of rising income * increasing demand for durable consumer goods* reducing cost thanks to scale merit * rising exports due to greater international competitiveness, the industrial structure of the Province is rapidly becoming sophisticated although still centering on light industries.
Such development owes significantly to active Chinese investments, which have the following features.
1) Investments have expanded from South China to China's coastal regions and the entire mainland.
2) Investments are mainly in processing industries based on production consignment agreements utilizing low-cost labor. They are small in scale and aim at quick recovery of investments. Although the capital invested is considerable, the enterprises do not generally have advanced technologies which China desires. Investments are brisk in real estate taking advantage of the international liberalization of services industry and in commerce and distribution targeting the growing domestic market.
3) Human network is developed and utilized as a powerful weapon to not only cultivate and exploit relationships with foreign and mainland Chinese firms but also maintain useful channels with government authorities.
4) Chinese firms enjoy the advantage of the commonalty of race, language and life style. They also benefit from the preferential treatment of Chinese capital.
In contrast, Japanese investments in China have the following characteristics.
1) South China is regarded as a processing base fully utilizing Hongkong's distribution, financial and information expertise. Thus, Japanese direct investments concentrate on the coastal regions such as Talien and Tientsin and the Changchiang delta.
2) By industry type, light manufacturing and processing industries are in the main. Shift from labor intensive to technology and labor intensive type is under way but high-technology enterprises are still rare.
3) Advancement of services industry is in prospect as approval is expected soon of establishing trading company subsidiaries, bank branches and distribution and transport enterprises.
Henceforth, it is quite conceivable that Japanese enterprises enhance tie-ups with Chinese counterparts to promote business with China by relying on the financial, human network and marketing clout of Chinese firms and offering Japanese technological and business management experience. Less
Research Products (3results)