“Taiwan is one of the friendliest countries toward Japan and due to its geographic location, Taiwan has long been one of Japan’s cooperative partners in commerce, investment and industry,” said Chiu Hui-Li, executive director of TAITRA’s Market Development Department.

“As Japan’s fourth-largest trading partner, our bilateral trade volume in 2020 reached $71.18 billion. Although Taiwan and Japan do not have formal diplomatic relations, our bilateral civic friendship, economic, trade and industry cooperation exist on a very strong foundation. Moving forward, Taiwan will remain one of the best global cooperative partners for Japan.”

As Taiwanese and Japanese manufactures share the need to develop third-country markets together, TAITRA is supporting companies as they work more closely together to serve customers in foreign markets. “TAITRA handles Japan-Taiwan industrial supply chain cooperation in third countries through trade promotion activities and industrial cooperation initiatives to coordinate a win-win strategy for Taiwanese and Japanese manufacturers,” Chiu said.

JTEA playing crucial role

The desire of Taiwan and Japan to cooperate more closely is being strengthened by the Japan-Taiwan Exchange Association.

“As essential partners, Japan and Taiwan have developed economic ties in various fields over several decades,” said Hiroyasu Izumi, the Japan-Taiwan Exchange Association’s chief representative.

“In 2020, trade remained in line with yearly averages despite increases in transportation costs, and trade is expected to increase once shipping container shortages and the rise in transportation costs is resolved,” Izumi said. “Demand for electronic components and semiconductors is also expected to increase.

“Key industries have realized the importance of restructuring their supply chains and to recognize the risks involved in centralized production and procurement. The digitalization and digital transformation of businesses will lead to increased demand within the semiconductor, information technology and electronics industries and we expect trade in these sectors to increase accordingly.

“It is important to strengthen the Taiwan-Japan relationship in order to achieve sustainable economic growth. We believe our cooperation will continue and together we will find solutions to global challenges.”

en.taitra.org.tw
www.koryu.or.jp/en

Akira Otsuka, General Manager of Hirose Electric (Taiwan)   |  © HRS Taiwan

“Innovative automotive design is developing rapidly as drivers demand more, and modern vehicles require added electronic devices as functionality increases,” he said. “We expect Taiwan to play an important role in tomorrow’s automotive market.”

Otsuka concluded: “Across all markets in which Hirose Electric is active, clear communication is at the very heart of our business. Communicating in the local language enables us to do better business, build relationships with customers and win hearts. Our employees and partners in Taiwan play an important role in our success, and I always encourage our team to remember the advantages we offer customers in terms of quality and service.”

www.hirose.com/tw

Recognized as one of Taiwan’s most prestigious law firms, Tsar & Tsai has acted as a full-service law firm since 1965 and the firm’s team of expert lawyers has a special interest in Japan.

“Japanese companies need Taiwanese lawyers who are not only fluent in Japanese and can understand Japan’s corporate culture, but also provide legal services in English, especially for large-scale projects across multiple jurisdictions,” Lin said. “Tsar & Tsai is able to successfully assist Japanese clients as many of our lawyers are fluent in both Japanese and English.”

Relationships between Japanese companies and their Taiwan business partners can sometimes present challenges. Many Japan-Taiwan joint ventures bring together Japanese listed companies and small to midsize Taiwanese firms.

“Even as a majority shareholder in a joint venture, Japanese companies can face regulatory challenges in Taiwan,” Lin said.

“Stringent compliance regulations are often imposed on Taiwan-listed companies and Taiwanese businesses are often unaware of the legalities applicable to their joint ventures. Taiwanese companies are more familiar with the local market and often manage joint ventures, so in order to minimize risk, Japanese companies need expert legal advice.”

While many Taiwanese law firms are able to provide corporate and litigation services in Japanese, Tsar & Tsai has a wealth of experience in providing Japanese-language legal services across corporate, foreign investment, competition law, biotechnology, cryptocurrency and dispute resolution practice areas.

“As a leading Taiwan-based law firm and a specialist in Taiwan law, we are proud of our ability to provide legal services in multiple languages,” Lin said. “Moving forward, we look forward to working closely with our Japanese friends here in Taiwan.”

www.tsartsai.com.tw

The company has ensured the Daikin brand leads the Taiwan residential and commercial air conditioner market by providing total solutions and a diverse product line in addition to marketing, industrial design and engineering services through its subsidiary companies.

“With approximately 1,000 dealers, our dealership network is very strong and we place great emphasis on providing a high level of customer service,” Soo said. “Our strong team of maintenance personnel are able to serve our clients all year round, delivering a timely and quality-driven service which is particularly important in the hot summer months.”

Japan’s Daikin Industries invested in Hotai Development in 2016 and today owns a 10% stake in the company.

“Through our joint venture, we fully expect to build on our successful relationship and strengthen the Hotai Development and Daikin partnership,” Soo concluded.

“The Daikin product range is outstanding and as we expand and grow our business in Taiwan, we are proud to be in a position to share our success with our dealers and customers as we approach our 60th anniversary in 2023.”

www.hotaidev.com.tw
www.hotaico.com

Synergy Media Specialists: How important is it for Japan and Taiwan to strengthen their economic relationship?

Hiroyasu Izumi: “As essential partners, Japan and Taiwan have developed economic ties in various fields over several decades. It is important to strengthen our relationship in order to achieve sustainable economic growth and we believe our cooperation will continue and together we will find solutions to global challenges.”

“Firstly, both Japan and Taiwan promote renewable energy solutions in order to reduce carbon emissions. As a country, Japan has set itself the target of becoming carbon neutral by 2050. Offshore wind power and hydrogen solutions are contributing to energy challenges in Japan. Taiwan wants renewable energy solutions to account for twenty percent of its energy needs by 2025. To meet this target Taiwan is promoting offshore wind power and solar photovoltaic cell solutions and many Japanese companies are participating in energy projects in Taiwan. Japan and Taiwan’s cooperation will boost renewable energy solutions and contribute to a carbon-neutral global society.”

“Secondly, the resilience of global supply chains is vital for sustainable growth. The importance of robust supply chains was evident during the COVID-19 pandemic and during any U.S.-China trade friction.”

“Furthermore, shortages of automotive semiconductor chips revealed the importance of strong semiconductor supply chains for today’s digital society. While Taiwanese companies dominate the global semiconductor manufacturing market, Japanese companies are strong suppliers of equipment and materials for semiconductor manufacturing. Japan and Taiwan’s close cooperation has lead to the resilient supply chain we see today.”

Synergy Media Specialists: What does the future hold, post-pandemic, for Japan and Taiwan in terms of trade and culture ties?

Hiroyasu Izumi: “Economic, travel and trade ties between Japan and Taiwan have been stable over the last ten years. The Japan National Tourism Organization (JNTO) and the Taiwan Tourism Bureau under the Ministry of Transportation and Communications both revealed the number of tourists between Japan and Taiwan exceeded seven million for the first time in 2019.”

“According to Japan’s Ministry of Finance, total trade between Japan and Taiwan since 2017 has amounted to over JP¥ 7trillion and reveals our close economic partnership. We saw travel restrictions in 2020 due to the pandemic. This lead to the number of Japanese visitors to Taiwan and Taiwanese visitors to Japan decrease to 960,000, an 86.3 percent drop from the previous year. On the other hand, the pandemic had almost no impact on trade statistics and these figures show the strong economic relationship between Japan and Taiwan.”

• JP¥ 4.7trillion (US$ 44.4billion) – Exports from Japan to Taiwan.
• JP¥ 2.9trillion (US$ 27.4billion) – Imports from Taiwan to Japan.
• JP¥ 7.6trillion (US$ 71.8billion) – The amount of total trade between Japan and Taiwan, maintaining the previous year’s level.

“In terms of transportation costs, the pandemic has impacted a wide range of industries, including the transportation of automobile components due to shipping container shortages. Transportation costs between Japan and Taiwan have risen rapidly. According to one Japanese company operating in Taiwan, transportation costs between Yokohama port and Keelung port are six times higher than last year.”

“With regards to travel between Japan and Taiwan, there is a high interest among Taiwanese to travel to Japan and the number of Taiwanese visitors to Japan is expected to increase significantly with the lifting of travel restrictions. Taking first place as Taiwan’s ‘most favored travel destination after the pandemic’, Japan won 42.1 percent of the votes in a survey for major Taiwan business magazine “遠見”.”

“Trade remained in line with yearly averages despite increases in transportation costs in 2020. Trade is expected to increase once the shipping container shortages and the rise of transportation costs are resolved. Demand for electronic components and semiconductors is expected to increase. Key industries have realized the importance of restructuring their supply chains and recognize the risks involved in centralized production and procurement. The digitalization and digital transformation of businesses will lead to increased demand within the semiconductor, information technology and electronics industries and we expect trade in these sectors to increase accordingly.”

“2021 marks a decade years since the Great East Japan Earthquake and tsunami. In the wake of the earthquake, Taiwan donated more than NT$ 6.8billion and offered relief supplies in addition to dispatching rescue teams to affected areas. Japan rediscovered Taiwan which is an extremely crucial partner and an important friend.”

“Late last year The Japan–Taiwan Exchange Association launched a new original logo ‘Japan-Taiwan Friendship, Always Here’. With this logo, the Japan-Taiwan friendship campaign is now underway and we will carry out a series of cultural events to express our sincere gratitude to Taiwan and the people here for their help and friendship.”

Taiwan is an indispensable player in information communication technology (ICT) and other supply chains within the Japan-Taiwan commercial, industrial and investment relationship.

In recent years, Taiwanese manufactures have been actively cooperating with Japan in the manufacture of semiconductors, electronics and within the automotive sector.

From 1952 to 2020, over 33,023 cases of Japanese foreign direct investments (FDI) reached Taiwan and amounted to US$ 48.7 billion.

Major sectors of Japan’s FDI into Taiwan are in the following sectors: wholesale, retail trade, construction, chemical manufacturing, electronic parts manufacturing and metal product manufacturing.

Meanwhile, Taiwan has made over US$ 9.22 billion direct investments in Japan.

Japan-Taiwan: Industrial supply chain cooperation in third countries

Taiwanese and Japanese manufactures share the need to develop third-country markets together.

TAITRA handles Japan-Taiwan industrial supply chain cooperation in third countries through trade promotion activities and industrial cooperation initiatives to coordinate a win-win strategy for Taiwanese and Japanese manufactures.

Our strong bilateral industrial cooperation varies from any Indo-pacific strategy and Sino-American trade war issues and is in line with the diversification supply chain policies of Japan’s Ministry of Economy, Trade and Industry.

Although Taiwan and Japan do not have formal diplomatic relations, our bilateral civic friendship, economic, trade and industry cooperation exists on a very strong foundation. Moving forward, Taiwan will remain one of the best global cooperative partners for Japan.

www.taitra.org.tw

“Our studies show the unique anthocyanins and other polyphenols found in New Zealand’s blackcurrants improve vision, combat obesity and prevent cognitive decline that can lead to Alzheimer’s disease, Parkinson’s disease and dementia.”

“Many Japanese doctors recommend the daily intake of New Zealand blackcurrant product to prevent age-related conditions such as macular degeneration, glaucoma and cataracts,” noted Shiojima.

“Even the doctor of the Hanshin (Tigers) professional baseball team uses New Zealand blackcurrant products to improve vision and recovery.”

JTBPD also supplies ingredients made from New Zealand blackcurrant to global food companies.

“As people continue to invest in their health, a daily intake of blackcurrant anthocyanins will improve their lives,” Shiojima concluded.

www.jtbpd.com

NPIL’s industry-recognized reputation is based on the delivery of consistent and high-quality products, sustainable resource management, low environmental-impact practices, market-led research and continuous product development. The company intends to contribute to Sumitomo Forestry’s W350 plan — a 350-meter high-rise wooden building, to celebrate its 350th anniversary in 2041.

“The W350 project is an opportunity for the Sumitomo Forestry family to work together, find solutions and create a structure which has never been built before,” Kruse said.

“I have the upmost respect for the senior management of Sumitomo Forestry and our friendships have strengthened over time. We share the same business ethics and passion for forest products.”

The forestry industry has seen a tremendous revival in recent years. Driven by environmental efforts toward carbon neutrality, the industry today plays a significant role. As trees grow they sequester carbon, which is then stored in wood products. Both Japan and New Zealand have committed to becoming carbon neutral by 2050.

Research and development and innovation are central to NPIL’s high-performance timber materials, and the company works closely with Sumitomo Forestry’s Tsukuba Research Institute in Japan. The company also collaborates with the University of Canterbury and Auckland University of Technology to educate the next generation of architects and civil engineers on the benefits of timber construction.

“Wood and timber-built buildings contribute to people’s wellbeing,” said Kruse. “More people understand this today and we will deliver renewable and sustainable building materials to future generations.”

www.nelsonpine.co.nz

Panasonic Homes partnered with Mike Greer Commercial (MGC), one of New Zealand’s largest privately owned residential building companies, and completed a prototype home in Waikato, New Zealand.

“While most homes in New Zealand take seven months to build, our technology reduces construction time and enabled us to complete the prototype house in three months and it will also lead to skill transfer to construction personnel.” Tanaka said.

“Through the introduction of housing technology cultivated in earthquake-prone Japan, we look forward to delivering solutions to the country’s building sector and sharing our expertise to contribute to the further development of construction industry in New Zealand,” said Tanaka.

homes.panasonic.com/english
www.mikegreercommercial.co.nz
www.kaingaora.govt.nz

“We have put ourselves under pressure to achieve something exceptional and this is not an easy task. But our resilient team can leverage from our strong base that is rooted in the values and principles of our parent company in Japan,” he continued.

Toyota’s journey in New Zealand began in 1966 when TMC awarded a franchise to private owners Cable Price and Wright Stephens. It assembled a variety of “completely knocked down” vehicles in Thames and Christchurch all the way through to the late ’90s.

Local assembly ceased in New Zealand after the government lifted tariffs on imported vehicles.

“When the markets started to open up, TMC took full ownership of Toyota New Zealand and our innovation really accelerated,” Lala shared.

Major developments included the introduction of Toyota Financial Services and Lexus, the launch of the iconic “Welcome to our world” campaign and the establishment of the National Customer Centre.

Toyota is the only car brand in New Zealand that has a national center dedicated to its customers.

“With the introduction of independently owned Toyota stores and Toyota’s continuous innovation, we became a most loved brand, jumping from sixth in the market to No. 1, a position we’ve held on to for a record 33 consecutive years,” he added.

As the economy opened, used car imports started flooding the market and for many years New Zealand was the No. 1 export destination for used cars from Japan.

Toyota New Zealand made the strategic decision to refurbish the used Toyotas entering the country and market them under its Signature Class brand, making it the first Toyota distributor in the world to have a full used-vehicle division.

“We always have our customers at the center of everything we do and we felt that we needed to look after those that have purchased these used Toyota vehicles even if we did not bring them in,” explained Lala.

Connecting to Toyota President Akio Toyoda’s concept of waku doki (heart-pumping excitement), the Toyota Racing Series was introduced in New Zealand. Motorsport was used to inject excitement into Toyota, turbo-charging the brand even further in the country.

In recent years, Toyota New Zealand launched the customer- centric Drive Happy Project to remove the pain points associated with buying a brand-new car and to make the process as efficient and as enjoyable as possible. Upfront, haggle-free prices, “no hard sell, just happy customers” and flexible test drive options are just some of the ways they do this.

Neeraj Lala shares in President Toyoda’s passion and enthusiasm to transition from being a traditional automaker known for cars, trucks and vans to a mobility company focused on exciting future technologies. “We are in a very good place to leverage off the strengths of our parent company. I look forward to leading Toyota New Zealand through these exciting times and to winning the hearts of New Zealanders.”

www.toyota.co.nz