Japan and members of the Association of Southeast Asian Nations must consider how they can cooperate to compete with China, which is becoming more economically powerful, Asian business leaders said in Tokyo on Friday.
Around 100 business leaders from Japan, Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand discussed various economic issues at the 27th ASEAN-Japan Business Meeting, organized by the Japan Association of Corporate Executives (Keizai Doyukai).
Closing the three-day gathering, Keizai Doyukai Chairman Yotaro Kobayashi told a news conference that China's economy is expanding more rapidly than expected and is becoming a threat to other Asian countries.
"China is increasing its presence not only in labor-intensive industries but also in technology-oriented ones," said Kobayashi, who is also chairman of Fuji Xerox Co.
According to Cesar Virata, vice chairman of Philippine firm Rizal Commercial Banking Corp., Philippine businesses must discover in which technology-based industries they can best compete with Chinese counterparts.
He said some labor-intensive manufacturing industries, including shoes, apparel and toys, have already moved from the Philippines to China since Beijing devalued its currency in 1994. The participants also agreed that the Chinese market will provide their nations with business opportunities.
Arab-Malaysian Group Chairman Azman Hashim said Malaysian companies are trying to find niche industries such as palm oil and tropical woods, to do business in China.