However, Japanese MNCs have long neglected the importance of cultivating qualified Chinese managers, and are used to sending senior Japanese executives to head their Chinese divisions.
Certain Japanese companies in China are overly worried about "Chinese risks," and unwilling to integrate into Chinese society. There is even a "village of Japanese companies in China" where Japanese businesspeople communicate with one another.
In addition to conservativeness in utilization of local talent, Japanese companies, especially major manufacturers, have seldom established technological research centers in China.
The negative attitude of Japanese enterprises toward the localization in Chinese market is greatly related with their overconfidence. However, once the market situation changes, the Japanese enterprises in China, which are ill-adapted to Chinese society in terms of qualified personnel, operating management, sales, purchase and product development, will soon become victims of the market competition.
As the first batch entering Chinese market, Japanese enterprises had made a brilliant success, but their inert thinking of resisting the localization and refusing to continue to improve themselves have led many of the top-class electrical equipment manufacturers to leave China.
Although the behavior that Japanese companies began paying attention to the localization in China may be an expedient to cope with the effect of diplomatic conflicts with China, some of them really reflected on their past practices and began to "observe the customs of the place."
Japanese companies should better integrate into Chinese society on the base of advanced, rigorous and clean-handed mode of Japanese business management.
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