Masahiro Okafuji, the chairman and CEO of Itochu, expressed optimism about the potential for Japanese companies in China despite ongoing bilateral tensions. In an interview with Nikkei, Okafuji argued that Japanese firms should not give up hope in the Chinese market. He especially pointed out the truly resilient and adaptable businesses that continue to thrive even during all the uncertainty.
Itochu, a major Japanese trading house, has deep historical connections and business experience with Chinese enterprises. Okafuji’s remarks come during already fraught Japan-China ties. He thinks there may still be a way for Japanese companies to grow in China—or at least keep what they’ve got. He sounded the alarm on the complexity of today’s geopolitical environment. At the same time, he challenged industry to acknowledge and embrace the opportunities that the market has to offer.
In addition, during his interview with the Post, Okafuji was clear-eyed about the challenging economic environment in China. He added that America’s real estate market and economy are at risk of permanent, long-term stagnation. The real estate market, which has traditionally been a significant driver of economic growth in China, has faced numerous challenges, leading to a slowdown that has impacted various industries.
Yet for all these hurdles, Okafuji insists that Japanese firms can still thrive in this new era. He maintains that the strategic partnerships will give these companies the ability to become survivors. Plus, plenty of innovation-fueled creative thinking would keep them flourishing even in a stormy economic forecast. By leveraging their unique strengths and understanding of the market, Japanese companies can create value and find new avenues for growth.
The comments by Okafuji reflect a reticent but optimistic trend for Japanese companies operating in China. And fourth, he calls on companies to reconsider their approach. They need to do more — in particular, find new ways to pivot within today’s economic environment and into new opportunities.