Japanese companies should seek to establish a regionwide network in East Asia to maximize their business efficiency, turning not only to China but also to the 10-member Association of Southeast Asian Nations as their production bases, a government white paper on trade said Friday.
The annual paper by the Ministry of Economy, Trade and Industry called on Japanese businesses to avoid relying only on China, because labor costs do not vary greatly between the country and ASEAN, and various business risks exist in China.
"Japanese companies could face obstacles to their businesses which cannot be seen in matured markets, such as low levels of compliance and structural problems" in China, the 2005 White Paper on International Trade and Economy says. The document was approved by the Cabinet earlier in the day.