China is premier partner

China Daily | Updated: 2015-06-18 08:30

The Japanese economy is the world's third-largest by nominal GDP, and it is still the second-largest developed economy after the US. In recent years, Japan has retaken the path of economic growth after decades of stagnation. In fact, considerable improvements have been witnessed recently, such as higher wages and a steady decline in the unemployment rate, which is in turn bolstering consumer confidence.

This provides the ideal framework for Tokyo's hosting of the 2020 Olympic Games, when the country will once again become the world's focus. The Games are expected to serve as a catalyst to further boost infrastructure, tourism and long-term investment in the country both in the run-up to, during and after the event.

Moreover, the prevailing global low oil price environment, along with a weakening yen, is making a positive impact on the country's all-important export sector. China remains both the most important destination for Japanese exports and its premier trading partner.

"Fully 20 percent of Japan's trade value is linked with China," said Yoshikiyo Ono, secretary-general of the Japanese Shipowners' Association. "China's healthy growth rate directly benefits Japanese shipping companies."

China's continuing industrialization and growth also requires a growing amount of environmentally friendly and efficient energy solutions, and this is an area in which Japan has key knowhow. "Every year, economic missions are sent to Beijing with the aim of supporting business ties and expanding collaboration between China and Japan," said Iwao Okamoto, president of the Japan-China Economic Association. "Japan has undergone similar situations to what China is facing at the moment. Our experience can help China to resolve its actual challenges, and benefit both countries"

Japan's chemical industry is playing a key role in the country's economic revival and growth. It supplies chemical products and raw materials to vital industries, contributing to the development of electronic parts and components such as semiconductors, communication devices and electrical machinery, as well as automobiles. The sector is also contributing to integral advances in the fields of biotechnology and information technology, including the development of products and solutions aimed at tackling global warming.

The country's Kansai region, surrounding the main city of Osaka, is an important hub and the most important economic center in Japan after Tokyo. Major companies are established in this region due to its enormous potential as a market for consumer goods.

"Currently, Kansai's economy is in good shape, with its manufacturing sector performing better than the national average," said Soichiro Seki, director general of the Kansai Bureau of the Economy, Trade and Industry. "The region benefits from a good balance, in which small and mid-sized companies participate in total production."

As all eyes focus on Tokyo's turn in the global spotlight five years from now, Japan's growth is consolidating its position as a key economy for global economic stability and prosperity.

World Eye Reports provided the story.