Asia 2009 Trade and Investment Mission Blog

Last evening we had dinner with government officials and business leaders that combined traditional American and Japanese food with Japanese entertainment.  The music was played from ancient instruments and the dancing was beautiful.

I've mentioned in previous posts that the Japanese put a lot of value on cleanliness and organization.  There is no trash in the streets.  The children wear uniforms and walk in very straight lines.  This emphasis even crosses over to their taxicabs.  Cabs have crocheted linens over seats, the drivers wear white gloves and there is special carpet installed.

Today was the closing of the Midwest U.S.-Japan Association and Japan-Midwest U.S. Association Conference.  Part of this day consisted of a panel discussion that included:

• Takehiko Kiyohara, Chairman and CEO, The Sankei Shimbun
• Katsuaki Watanabe, Vice Chairman, Toyota Motor Corporation
• James Mueller, Vice President – Pacific, United Airlines-Japan
• Katsunari Yamaguchi, Ph.D/CMA, President, Ibboton Associates Japan, Inc. a Morningstar company

Two of my fellow delegates, Jeff Knight at Old National Bank and Kevin Kelly with the city of Noblesville, made interesting observations regarding the panel discussion.

Comments from Jeff Knight, Old National Bank
The first speaker, Takehiko Kiyohara, is in the newspaper business.  His primary point of concern was the declining populations in the Asian markets (China, India and Japan) and the impact that will have on the economy.  He indicated that in Japan, by 2055 the Japanese populations will be 20-30 percent less than what it is today; losing about 1 million in population per year.   There have been several proposals to address this issue which are:

• The current government has proposed that each family receive approximately $300 per month per child.
• Raise retirement age from 60 to 70 years old.

James Muller from Pacific, United Airlines-Japan spoke about the difficulties of the airlines in the past 10 years.  He underlined the importance of the Asian market to United Airlines and keeping good customers and clients.  United Airlines designs programs to keep high paying first class business customers.

Katsuaki Watanabe from Toyota Motor Corporation addressed environmental concerns and talked about the Kyoto Protocol, which Japan signed.  India and China produce 50 percent of the carbon emissions in the world and environmental concerns need to be taken seriously.  Toyota hopes to refine the new technology on the hybrid batteries a market in which they currently have a competitive advantage.  Toyota has sold more than 2 million units with the goal of selling more so we can all breath cleaner healthier air.

Overall, one of the most significant things we learned was the importance of mingling the culture with business.  This is particularly true in China.  The trip was very positive and important for Indiana and our businesses.

Comments from Kevin Kelly, City of Noblesville
It's been a wonderful trip for the Indiana delegation.  We went to both China and Japan in order to help establish new relationships between the state and Chinese and Japanese companies.  Perhaps more importantly, we came to cement and strengthen existing relationships.  Indiana is a leading state for foreign direct investments from Japan and we're trying to be a leading state with China as well.

The state's history with Japan goes back over 30 years.  The Chinese initiative is much newer and under Daniels leadership a new emphasis has been placed on building relationships in China.

All the delegates feel it's been a productive 12 days.  Some are staying on to continue building their own relationships at the community and company level.  I am proud to have had the opportunity to participate in this trade mission.

Closing Comments from Melissa Proffitt Reese
Something that stands out for me regarding the entire trip is that the governor's efforts are really, after five years, starting to be recognized, especially in Japan.

The fact that Daniels' leadership is being recognized on the national level has helped, especially in China.  Some of the events, especially the banquets, happened because of the governor's prominence.  The Chinese view him as someone they want to partner with especially if he does something more like run for president (despite what he says).  Even though he says "no" he's being recognized.  He had an article run in the Wall Street Journal that was reprinted in the Asian Wall Street Journal while we were in China.  They see he is a man of great respect in America and that's helped him receive much respect in Asia.

The governor has spent a lot of time building Japanese relationships and understands the value of these relationships goes a long way.  The timing is right for these relationships in China also.

Tomorrow we head home, tired and very excited.  The future is bright.