China is not a threat but a great opportunity for Japanese companies, Sony Corp. President and COO Kunitake Ando said. Japanese firms should collaborate, while competing, with their counterparts in China in order to maintain a healthy business environment, he said.
East Asia will become a "growth engine" for the world economy if Japan can join forces with China and other countries in the region, he added. "Many other Japanese companies feel the competitiveness from Chinese companies and sometimes take it as a threat. But I think it is a great opportunity," Mr. Ando said. "We should compete, but at the same time we should cooperate," Ando said.
He said Japanese firms still have the edge over Chinese companies by possessing "a great wealth of resources and experiences" in developing new products and new types of markets as well as services, even though China has a workforce of high quality. "If we combine the strengths of the two countries, and also include that of South Korea and other East Asian countries, we can really feel that this region is strong and will move faster," said the executive of the world's leading manufacturer of electronics, information technology and entertainment products.
A fast-growing China, which is attracting many overseas companies to open businesses there, has been blamed by some critics for competing foreign investment in the region and for hollowing out industries of other Asian countries. Still, more Japanese firms are setting up offices and factories in China due to lower costs of production and access to the potentially huge Chinese market. (Kyodo News)
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