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Tokyo financial forum lays foundation for economic cooperation

By Jiang Xueqing in Tokyo | chinadaily.com.cn | Updated: 2024-10-19 14:30
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Forum participants in Tokyo listen to a speech by Tong Jiadong, chair professor at Nankai University, which was delivered via video link. Jiang Xueqing / China Daily

In recent years, as China's overseas investments have increased, Chinese companies have been monitoring promising industries in Japan. Kenji Abe, chief strategist at Daiwa Securities, noted that Japan is gradually emerging from deflation, with the central bank beginning to raise interest rates, although this process is still in its early stages. As bank's interest rates continue to rise, the outlook for Japan's financial sector appears to be bright.

Abe also highlighted Japan's strengths in the semiconductor and chip manufacturing industries, which offer significant long-term investment opportunities.

While Japan faces a labor shortage in the long term, companies are heavily investing in digital transformation to enhance productivity. The focus on digitalization positions IT companies for strong performance, with the supply of IT systems emerging as a promising sector, he said.

Tatsuhito Tokuchi, consulting senior fellow of the Asia Pacific Initiative at International House of Japan, echoed Abe's sentiments, noting the significant potential in Japan's semiconductor and chip industries, along with growing interest in artificial intelligence as demand steadily increases.

Tokuchi pointed out that new manufacturing industries are developing in Japan's Tohoku region, particularly those related to AI, semiconductors and chips, which are expected to positively impact the Japanese economy.

In addition, Tokuchi sees long-term growth in Japan's hotel, restaurant and tourism industries. Spending by foreign visitors to Japan reached 5.3 trillion yen ($35.44 billion) in 2023, making up nearly 1 percentage of Japan's Gross Domestic Product. Many of Japan's tourism resources have yet to be fully developed, and he believes that more foreign tourists will visit Japan in the future.

He emphasized the importance of communication between the governments of China and Japan at all levels. "This will help businesses feel confident that trading in China, investing in China and investing in Japan, within the bounds of government regulations, is free, stable and secure," Tokuchi said.

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