GUANGZHOU, Dec. 16 (Xinhua) — At a brand new facility in south China’s Guangdong Province, air conditioners roll steadily off the meeting traces, whereas robots glide by way of the aisles transporting merchandise.
This facility is the preliminary section of an enormous air conditioner manufacturing base by Daikin Industries, a number one air-con and refrigeration system producer headquartered in Osaka, Japan. With an funding of 1.75 billion yuan (about 243 million U.S. {dollars}) and spanning 220,000 sq. meters, the bottom is about to change into Daikin’s largest air-con manufacturing hub in China as soon as totally accomplished.
In 2024, Daikin celebrates its a centesimal anniversary and 29 years of operations within the Chinese market. The firm presently operates 22 manufacturing bases and a number of analysis facilities in cities reminiscent of Shanghai and the jap metropolis of Suzhou.
Despite financial challenges, Daikin is amongst many Japanese corporations doubling down on the Chinese market. Data reveals that Japanese corporations have established over 55,000 enterprises in China, with cumulative funding exceeding 130 billion U.S. {dollars}, making Japan one of many main supply of overseas funding within the nation.
“Although China’s economy faces some challenges, Japanese companies remain committed to deepening their presence in the market,” stated Tetsuro Homma, president of the Japanese Chamber of Commerce and Industry in China and government vp of Panasonic Holdings Corporation.
According to a November survey by the chamber, greater than half of Japanese corporations plan to keep up or improve their funding in China in 2024.
“The strong demand in the Chinese market motivated us to increase investment and build the new production base,” stated Ishikawa Yasuhiro, managing director of Daikin Air Conditioning (Huizhou) Co., Ltd. He added that Guangdong’s industrial clusters, strong labor market and sound enterprise setting had been additionally elements within the choice.
Daikin is just not alone in capitalizing on Guangdong’s strategic benefits. Saizeriya, a Japanese chain of Italian eating places, just lately opened a brand new location in Yangjiang City and invested 4 billion yen (about 26 million U.S. {dollars}) this yr in a 12,000-square-meter meals manufacturing plant within the province to fulfill rising demand.
“Thanks to the convenient transportation and logistics network of the Guangdong-Hong Kong-Macao Greater Bay Area, products from our plant can be delivered to restaurants across Guangdong within a day,” famous Miyamoto Noriaki, normal supervisor of Guangzhou Saizeriya Co., Ltd.
Since opening its first retailer in Shanghai in 2003, Saizeriya has expanded to over 500 areas throughout the Chinese mainland. According to its monetary report, the mixed working revenue of its subsidiaries in Beijing, Shanghai and Guangzhou reached 8.35 billion yen between Sept. 1, 2023, and Aug. 31, 2024, a rise of 32.58 p.c in comparison with the earlier fiscal yr.
“The Chinese market significantly contributes to our profits, and our future growth will center on China,” Noriaki stated, including that the corporate is eyeing growth in cities like Wuhan, Qingdao and Changsha.
Homma emphasised the huge potential for China-Japan cooperation in fields reminiscent of inexperienced growth, power, digital transformation, provide chain automation, high-end supplies and silver financial system.
Taking Panasonic for example, Panasonic in October broke floor on a brand new digital supplies manufacturing unit in Suzhou in a bid to produce superior supplies for China’s semiconductor trade.
In response to China’s rising silver financial system, Panasonic has developed a collection of senior-friendly merchandise, that are already in use on the Yada Panasonic Community in Yixing, east China’s Jiangsu Province — Panasonic’s largest sensible retirement mission in China.
“The Chinese market has unparalleled advantages,” stated Homma. “It boasts a vast market, a comprehensive industrial and supply chain, strong adaptability to new technologies, and immense economic development potential, offering enterprises extensive opportunities for growth.”