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Japanese Businesses in China: Performance, Control, Trust and their Relations in Japanese–Chinese Joint Ventures

In: Asia and Europe in the New Global System

Author

Listed:
  • Tadamasa Imaguchi
  • Xinjian Li

Abstract

In 1985 the European Commission introduced the single European market programme with the intention of eliminating a wide range of non-tariff barriers to the internal movement of goods, services, assets and labour in the European Community by January 1993. This chapter aims to clarify the impact of the programme on the operation of Japanese companies in the region and their responses to it by introducing case studies on three Japanese companies with substantial operations in Europe: Canon, YKK and Mitsui OSK Lines. First, the methodology used will be introduced. The chapter will then analyse the potential impact of the economic integration on foreign direct investment. The analysis is used in subsequent sections to categorize the results of the investigation into the impact of the programme on the Canon, YKK and Mitsui OSK Lines organizations in Europe. This is followed by the summary of the investigation with the aim of extracting common elements from all three case studies. This chapter uses case studies as a way to demonstrate how the single European market programme has affected Japanese direct investment in the region. The three companies used in this study were selected carefully in order to represent the bulk of investment. Canon was selected for its substantial production activities in the region and its characteristic high scale economies production which is commonly found in Japanese direct investment there. YKK was also selected for its sizeable investment as well as the characteristic low-volume, high-variety and extensive customer-orientation of its products. It is therefore useful to give an insight into the impact of the programme on the investment of a non- Canon type enterprise. In addition to its similar substantial operations in the region, Mitsui OSK Lines is in the transport service business, which faced an immediate business environment change as a result of liberalization of trade and service flows.

Suggested Citation

  • Tadamasa Imaguchi & Xinjian Li, 2003. "Japanese Businesses in China: Performance, Control, Trust and their Relations in Japanese–Chinese Joint Ventures," Palgrave Macmillan Books, in: Sung-Jo Park & Sierk Horn (ed.), Asia and Europe in the New Global System, chapter 9, pages 172-184, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50306-9_9
    DOI: 10.1057/9780230503069_9
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