Mitsui & Co., Ltd. is planning to
increase investment in China's energy industry. The company's general
representative in China, Toshihiro Soejima, said in an interview with the
Shanghai Securities News yesterday that the company is considering cooperating
with Chinese companies to develop resources overseas to meet the needs of the
Chinese market. But he did not disclose the Chinese "candidates"
being negotiated. Mitsui & Co., Ltd. is a trading company of the Mitsui
Consortium, one of Japan's six major conglomerates.
"The area we most want to invest in is
the energy industry, such as the development of oil and natural gas, and coal
mining," Toshihiro Soejima said. "But this area has not yet been
opened to foreign investment in China. Mitsui & Co. has invested the least.
It is a pity, but we Really want to get in and develop.”
Toshihiro Soejima believes that, subject to
restrictions, the most likely field to enter now is coal. Although it cannot
enter the mining process, it can enter the coal liquefaction, gasification and
coal chemical product production processes. "We may look at those
aspects."
Toshihiro Soejima said that Mitsui &
Co.’s future key strategic development areas are new energy development,
application environment, new public transportation systems and recycling
businesses.
Toshihiro Soejima believes that China’s
energy policy should be guided by improving energy development and utilization,
introducing advanced foreign technologies, vigorously developing high-value,
energy-efficient coal resources, and actively acquiring overseas resource
rights.
Mitsui & Co. is a trading company, and
most of its cooperation with Chinese companies is responsible for
"promotion." Toshihiro Soejima said that Mitsui & Co.’s
advantages in global trade can help more Chinese companies “go global.”
It is reported that Mitsui & Co., Ltd.
has signed a strategic agreement with Shanghai Radio and Television, with the
goal of building it into the Sony of China. The export business of LCD panels
produced by SVA is carried out in cooperation with Mitsui & Co. "We
are working hard to expand its sales market."
Toshihiro Soejima also revealed that a new
business that has just been started recently is the plan to export Chinese auto
parts to the international market. He believes that China's auto parts industry
can become China's powerful export industry in the future. "We are in
contact with many auto parts manufacturers in China and are selecting partners.
Of course, this has just begun."
Toshihiro Soejima said that China's GDP has
maintained a growth rate of more than 9% in recent years. This situation will
continue for some time and may slow down in the future.
Toshihiro Soejima emphasized that there is
currently no overall acquisition plan in China and will only invest in existing
companies. But before investing, a market survey will be conducted. He said
that Mitsui & Co.’s main considerations for investing in China include:
whether there is market space for the investment target product, what
competitors are in the industry, and cost accounting.
Although Chinese real estate is favored by
foreign investors, Toshihiro Soejima is very cautious. He said the company has
only made a small portion of real estate investments in China. Japan
experienced a bubble economy from the 1980s to the early 1990s, in which
Japanese real estate was the hardest hit. Mitsui & Co., which invested in
real estate at that time, suffered heavy losses as a result, so the company
became very cautious in real estate investment.
Founded in 1876, Mitsui & Co. is the
oldest trading company in Japan. Its business involves energy, steel,
non-ferrous metals, machinery and electronic information, infrastructure,
chemicals, grain and oil, retail logistics, finance, etc. Overseas branches are
located in 72 countries. It is now affiliated to the Mitsui Foundation of
Japan. This consortium, together with the Mitsubishi Foundation, Sumitomo
Foundation, Marubeni Foundation, Itochu Foundation, etc., controls 99% of
Japan's large-scale manufacturing companies and trading companies, and controls
the lifeblood of various Japanese industries.
At present, Mitsui & Co.'s turnover in
China has reached about 9 billion US dollars, but Toshihiro Soejima admitted
that the company's business volume in China only accounts for about 8% of its
global business volume.