Panasonic to continue to delve into Chinese market, says Panasonic VP

Executive Vice President of Panasonic Corporation Tetsuro Homma said the business environment in China is desirable and Japanese companies regard China as an important market and actively promote their business in China.

Homma, who also serves as the president of the Japanese Chamber of Commerce and Industry in China (CJCCI), told Xinhua in a recent interview that the Japanese tech company will continue to delve into the Chinese market.

Since Panasonic Group established China and Northeast Asia Company headquartered in Beijing in 2019, its products and services have become closer to the Chinese market, and its business in China has achieved relatively high growth for several consecutive fiscal years, Homma said.

Noting that in the past few years, the world has experienced multiple challenges such as the COVID-19 pandemic and the deterioration of the trade environment, Homma said Panasonic has continued to strengthen its investment in the Chinese market and built 17 new production bases, including three new bases in 2023, adding that Panasonic has made several investment plans for China this year.

For Homma, the Chinese market has five major characteristics: a huge market size, the continuous advancement of intelligence, the ability to digest and absorb new technologies, fault tolerance for innovation, talent reserves and a strong supply chain. He stressed that today's China is not only a manufacturing power, but also a consumer and innovation power.

Starting from the 2023 China International Import Expo, Panasonic has divided its business in China into three major categories: healthy and intelligent living space, new electric vehicle components, and intelligent manufacturing, proposing the overall concept of "Panasonic GREEN IMPACT," according to Homma.

Panasonic believes that these three areas are in line with the demand of the Chinese market and the development trend of the Chinese economy, he added.

Homma introduced the latest progress made by the company in the above areas. In the field of new electric vehicle components, a joint venture between Toyota Motor and Panasonic in Dalian, China, for vehicle-mounted lithium batteries completed the construction of the third phase of the plant last year and has begun mass production.

In the field of intelligent manufacturing, Panasonic Motor (Hangzhou) Co.,Ltd. began to relocate and build a new factory in September last year. With a total area of more than 50,000 square meters, the new place will be put into operation in April 2025. In terms of healthy and intelligent living space, currently 35 projects are in progress.

Homma said that Panasonic will continue to delve into the market in China and, in accordance with market changes, combine its experience in elderly care, housing and precision manufacturing accumulated in Japan with the reality of the Chinese market to help the high-quality development of China's manufacturing industry.

As the CJCCI president, Homma spoke highly of China's commitment to reform and opening up and its efforts to continuously optimize the business environment, which he believes will contribute to the long-term stability and sustained growth of China's economy and promote technological innovation and industrial upgrading.

Homma also introduced a recent survey of Japanese companies in China conducted by the CJCCI, which showed that most Japanese companies in China are satisfied with the business environment in China and more than half of Japanese companies are actively promoting business in China.

Regarding China's market positioning after 2024, more than half of the companies surveyed said that China is "the most important market" or "one of the top three important markets."

Homma said that the survey results suggest that the business activities of Japanese companies in China are becoming increasingly mature and better equipped to cope with market changes.