Problems relating to Trade and Investment on China
26. Others |
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Issue |
Issue details |
Requests |
Reference |
| (1) Increased Business Risk due to Aggravated Japan-PRC Relations | - The business has shrunken due to the uprising of demonstration against Japanese enterprises and people, due to the disputes over the Senkaku Islands, etc. - Since the Japan-PRC controversy in 2012, the sales have dropped, adoption of personnel has become difficult and business has substantially dwindled. - The negative impact of the Japan-PRC relations such as disputes over the Senkaku (Diaoyu) Islands: Example: Boycott against Japanese products, anti-Japan demonstration, etc., affecting the safety management of expatriates, etc. - Travelling Business suffered severed damage from the Japan/PRC Diplomatic Dispute over Senkaku (Diaoyu) Island disputes. - Outcome of diplomatic issues can give material impact on business. If not, within enterprises, the resulting negative impact socially, and upon infrastructure cannot be ignored. |
- It is requested that GOC gives due consideration of the Japanese affiliated enterprises operating in PRC. - It is requested that GOC gives due consideration of the Japanese affiliated enterprises operating in PRC. - It is requested that GOJ and GOC resolves the disputes as soon as possible for recovery of the amicable minds of both nationals. - It is requested that GOJ and GOC uses their best efforts for the maintenance of stable diplomatic relations. |
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| (2) Power Supply Shortage | - Blackout occurs due to the power supply shortage. (Blackout notices abruptly reach the user, when the power supply needs are at their peak). - During 2014, no blackout occurred, thanks to the overhauls of generating equipment and drop in power consumption by economic recession. However, the tightened demand/supply balance continues. - Production equipment is subject to the total power supply volume control. Upward change in power supply capacity is subject to governmental approval, provided, however, the timing of the grant of upward change is unpredictable. MFS has no alternative but foregoing the business opportunity that requires power output volume in excess of the budgeted plan at the fiscal year beginning. (Fatshan city, Guangdong province). |
- It is requested that GOC stabilizes the power supply. - It is requested that GOC beefs up the power supply that can meet the demand as soon as possible. - It is requested that GOC takes responsive action to ensure stable power supply, even at a moderate speed. |
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| (Action) - Guangzhou City invoked the measure for emergency restriction of power supply, again in January and February 2008. - On 1 April 2008, "Energy Conservation Law of PRC" was enforced. It stipulates among others enhancement of efficiency in energy consumption and tightening of penalties. |
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| (3) Unlawful Claim for Compensation of Damage | - A Japanese enterprise received a complaint from neighbouring farmers claiming unlawful damage compensation, when a Japanese enterprise constructed a forest road for logging (alleging that mud flew into their paddy field). This issue has since escalated, giving serious damage to logging and transportation. |
- It is requested that GOC: -- redoubles its effort to disseminate among local people that afforestation of eucalyptus trees is indispensable for development of local economy, and -- intercedes with the local farmers for conciliation. |
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| (4) Corruption | - While control has been tightened on bribery, entertainment, etc., local governments continue to demand gifts, or enterprises' products at no cost, or designate low, low prices, as if nothing has happened. - Due to the ambiguous definition of unfair competition (commercial bribery), there are cases where arbitrary authority's implementation is suspected. |
- It is requested that GOC: -- tightens its control, and -- conducts investigation of actual conditions. - It is requested that GOC takes step to stipulate its harmonised definition, employment, etc. into legislation for public disclosure. |
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| (5) Non-Payment / Payment Delays | - A year before last, having received dunning, a Member Firm's Subsidiary (MFS) under contract, however, without receipt of the contracted down payment, supplied equipment to a new building (under construction) of Public Security Bureau in certain Province (PSB). Due, in part, to the delay for more than one-year the completion of the building construction, the overdue amount remains unpaid to this day, (driving MFS into a financial shortage). As it stands, in light of the fact that certain portion of the work remains undone, the MFS proposed PSB that the remaining work would be suspended, pending receipt of payment. One of the shareholders of MFS is prompting payment by activating the personal contacts. - MFS is faced with collection problems with its customers: delays, difficulty in collection in its transactions, from differences in business custom, code of ethics, power balance, etc. While MFS deals on pre-payment principles, on high turnover business (smartphone parts manufacturing business, etc.), the highest priority falls on delivery and price, even the successful collection of accounts receivable has been achieved, the payment delays squeeze the profit. |
- It is requested that GOC supports Small-to-Medium Enterprises (SMEs) by providing information and warrants the collection risk. | |
| (6) Reimbursement is Difficult on Materials Price Differences | - In a case where: (1) Member Firm (from its Headquarters in Japan) procures centrally all materials and parts at volume discount prices (A) (2) for supply at market prices (B) to plural third party processing vendors, in PRC and/or in third countries, and (3) sells the Processed (finished) goods to Member Firm's Subsidiary (MFS) in PRC, Member Firm is unable to reimburse the differences [(C)=(A)-(B)] to MFS. |
- It is requested that GOC approves reimbursement in the mechanism similar to that employed as in the case of Hong Kong/Malaysia/Japan triangular trade. | |
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