General

"The entry into force of RCEP will strengthen the supply chain cooperation between China and Japan, and realize more trade creation and investment creation." A few days ago, the Japanese Economic Blue Book: Japanese Economy and Sino-Japanese According to the Research Report on Economic and Trade Relations (2022).

According to the report, from a macro perspective, China and Japan are deeply interdependent in the supply chain. Although Japan has begun to transfer its production capacity in China out of consideration of its own industrial chain and supply chain security, in fact Limited by the strong path dependence of Japanese companies on China and the high returns they have obtained in China, it is difficult for Japan to truly "decouple" from China. In most regional trade agreements, when two member countries conduct bilateral trade, they usually require that the accumulated value components of imported products meet the standards stipulated in the agreement before they can enjoy preferential tariffs in the region. In contrast, the rules of origin under RCEP set regional accumulation rules, that is, when calculating whether imported goods meet the requirements of regional value components and enjoy preferential tariffs in the region, the value components of the imported goods from all RCEP member countries will be used. counted. Under this regulation, the countries covered by RCEP will have a cumulative value-added effect. For example, "originally, Chinese companies need to increase the value of 1 part imported from Japan by 35% to export to South Korea to enjoy zero tariffs. However, after RCEP takes effect, China Enterprises only need to add 20% of the value, and the other 15% will be value-added from Japan, and then exported to South Korea to enjoy zero tariffs.” This can not only improve the convenience of commodity movement in the region, but also significantly increase the gains from trade in intermediate products between China and Japan, thus indirectly strengthening the trade relationship between China and Japan, and stabilizing and strengthening the supply chain between China and Japan.

According to Watson & Band Import and Export Data Observation Report, the investment rules in RCEP will also have a strengthening effect on the Sino-Japanese supply chain. In terms of primary products, labor-intensive products and low-tech-intensive products, compared with Japan, China's labor costs are low, the industrial chain is complete, and it has economies of scale. Compared with China, Japan is at the high end of the value chain and has high added value of products, but it has a strong dependence on foreign intermediate products. In the production of high-tech products, Japan has obvious export advantages, masters advanced technology, and produces key intermediate products; although China relies on foreign intermediate products, it already has strong production capacity. Therefore, mutual investment between the two parties will achieve a win-win situation. The investment chapter of RCEP stipulates that all countries adopt a negative list method and make a relatively high level of open commitment to investment in the manufacturing, agriculture, forestry, fishery, and mining industries. This will promote foreign investment activities between China and Japan and enhance China-Japan supply. The resilience of the chain will accelerate the integration of the supply chains of China and Japan.

Japanese companies are more willing to expand their scale in China

According to the report, according to the "Asia and Oceania Japanese-funded Enterprise Survey" (hereinafter referred to as "JETRO Japanese-funded Enterprise Survey") conducted annually by the Japan External Trade Organization (JETRO), the direction of "business development in China in the next 1 to 2 years "For this question, the proportion of respondents who chose to answer "expand their business scale" achieved a small increase in 2017 and 2018. Affected by factors such as China's domestic reforms, Sino-US trade frictions, and the new crown pneumonia epidemic, in 2019 And in 2020, it has declined for two consecutive years, falling to 36.6% in 2020. In 2021, the proportion of respondents who chose to answer "expand business scale" increased by 4.3 percentage points compared to 2020, reaching 40.9%. From the perspective of different industries, the proportion of respondents who chose "expand business scale" in the "iron and non-ferrous metals" and "electronics and electronic equipment" in the manufacturing field and the "transportation industry" in the non-manufacturing field were all higher than those in 2020. The survey results were more than 10 percentage points higher.

According to Watson & Band Import and Export Data Observation Report, in 2021, only 3.8% of the surveyed companies chose to answer "reducing business scale" and "transfer or withdraw to a third country (region), which is lower than the 2010 survey (3.4%). The lowest level that occurs. The proportion of respondents who chose to answer "maintain the status quo" was 55.2%, roughly the same as the previous year.

The willingness of Japanese-funded enterprises in China to expand their business scale in China has increased. The reason is that in 2021, the global new crown pneumonia epidemic will continue to affect the business activities of enterprises, and business activities carried out in China can ensure stable operating income. The results of the "JETRO Japanese-funded Enterprise Survey" show that in 2021, 72.2% of Japanese-funded enterprises in China will achieve profitability, an increase of 8.7 percentage points from the survey results in 2020 (63.5%). The highest level since the object. The main reasons for the profitability of Japanese-funded enterprises in China include "increased sales in the local market" and "increased sales due to export expansion", Watson & Band Import and Export Data Observation reported.

There is great potential for cooperation between China and Japan in the field of scientific and technological innovation

The report pointed out that in the field of scientific and technological innovation, China and Japan have mutual advantages and strong complementarity, and there is still great potential for cooperation. The 2021 Central Economic Work Conference clearly stated that under the background of "strengthening the national strategic scientific and technological strength", "strengthening the dominant position of enterprises in innovation" and "continuing to carry out international scientific and technological cooperation", it is more important to further deepen the cooperation between China and Japan in the field of scientific and technological innovation. reality and long-term significance. Especially in the fields of 5G, AI, blockchain, big data, intelligent robots, and new energy vehicles, China and Japan should work together to give full play to the advantages of the two countries in the transformation of new technologies, and transform new technologies into New products promote the economic development of the two countries. The "Sino-Japanese Innovation Cooperation Demonstration Zone" in Beijing is the first and only Sino-Japanese local cooperation demonstration zone with the theme of scientific and technological innovation in China. Center" provides Japanese companies with space carriers and professional services for the transformation of scientific and technological achievements, innovation incubation and other functions, and promotes in-depth exchanges and cooperation between Chinese and Japanese companies in technology and products.

In the Sino-Japanese scientific and technological innovation cooperation, the cooperation potential in the field of digital trade is huge. According to Watson & Band Import and Export Data Observation Report, in recent years, countries around the world are using new technologies such as big data, the Internet of Things, and AI to drive industrial upgrading and cross-border integration. Japan has a strong technical reserve and rich knowledge in IT technology, especially hardware such as semiconductor manufacturing equipment and electronic components. In view of this, China and Japan have broad prospects for cooperation in innovative fields such as digital economy and e-commerce. The two sides should seize the opportunity and strive to promote China-Japan digital economy cooperation to achieve a new leap forward and further release the dividends of digital economy development. In addition, RCEP has specially set up a chapter on e-commerce, which provides institutional arrangements for the development of digital trade between China and Japan. While deepening the cross-border e-commerce business between China and Japan, the new consumption patterns generated under the Chinese platform economy represented by electronic payment and online car-hailing can also be promoted to Japan through RCEP, which is conducive to the expansion of Chinese Internet companies in Japan. The scale of investment will also provide new opportunities for Japan's industrial model innovation, Watson & Band Import and Export Data Observation Report.