Business with Japan increasingly important for German companies

The business of German companies with Japan and from Japan is gaining in importance in view of the war in Ukraine. According to a survey by the German Chamber of Commerce and Industry in Japan and the auditing company KPMG, the proportion of German companies surveyed that have their Asian headquarters in Japan has increased by six percentage points compared to the previous year. “Especially in the current phase of uncertainty and realignment of the global economy, Japan is considered an anchor of stability and an important cooperation and value partner in Asia,” said Marcus Schürmann, Executive Board Member of the AHK Japan.

In the survey, 17 percent of German companies in Japan stated that they were directly affected by Russia’s war of aggression and the sanctions and counter-sanctions imposed. 74 percent are indirectly affected, especially by the limited availability of and increased prices for raw materials and intermediate products as well as problems in the supply chain. Nevertheless, three quarters of German companies expect sales to increase this year, and more than half also expect rising profits in Japan. For the coming year, the forecasts of the companies surveyed are even more positive, it said.

As the survey also shows, 58 percent of the German companies surveyed are now cooperating with Japanese companies on joint projects in third markets. They used their traditionally good market access, especially in Asia, it said. “This development emphatically underscores the strategic importance of Japan for German companies. The Russia-Ukraine war has led to a reassessment of the risk position of multinational German companies,” explained Andreas Glunz, Head of International Business at KPMG.

The German companies surveyed considered Japan’s particular strengths to be Japan’s economic stability, the trustworthiness of business relationships, as well as security and social stability. However, 81 percent complained about a clear shortage of qualified workers. (dpa)

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