Medical Services Providers of Taiwan and Japan Forming Joint Forces Aiming at Business Opportunities in China After the Signing of ECFA.

As the financial crisis and rising yen affected Japanese enterprises in recent years, they have devoted their efforts to seek more cost effective strategies.  Furthermore, some of the well-known Japanese brands reduced their scales of business operations which have severely impacted their subcontractors that are of small & medium entities.  In order to overcome all the above negative impacts, Japanese enterprises are anxiously seeking opportunities for forming strategic alliances with foreign companies.  In consideration of the advantages held by Taiwanese companies, including possessing global vision, foreign languages ability, ability in developing overseas market, high flexibility and cooperation, plus advantages (i.e. lower tariff and better IP rights protection terms) resulting from signing of ECFA, Japanese enterprises will establish closer business partnership ties with Taiwan’s enterprises.  According to the research conducted by Nomura Research Institute, if Japanese enterprise invests in China directly without forming any strategic alliance, the chance of success is 68%; nevertheless, the chance of success will increase by 10%, reaching 78%, if a strategic alliance is formed between Japanese and Taiwan enterprises.  Taiwanese and Japanese enterprises through technical cooperation or strategic alliances, mergers and acquisitions and other models, can combine their strengths with each other and create a win-win situation.

The Department of Investment Services (DOIS), MOEA of Taiwan and the Mizuho Financial Group of Japan have signed a Memorandum of Understanding (MOU) on 19 January 2010 at the location of MOEA, with the purpose of promoting bilateral investment and assisting enterprises from both countries to exchange and cooperate with any third countries.

Acting in accordance with the early harvest list contained in ECFA for the area of services and the measures for opening market, mainland China approved Taiwan’s medical service providers for establishment of new hospitals through forming joint venture or by cooperating with local medical service providers.  In addition, in areas such as Shanghai City, Jiangsu Province, Fujian Province, Guangdong Province and Hainan Province, Taiwan medical service providers are allowed to establish sole proprietorship hospitals.  The Straits Medical Industry Development Association (SMIDA) have started the layout of the Chinese market for many years, the association have entered into MOU with the local governments of Shandong Province, Jiangsu Province, Chongqing City and others.  In order for medical and healthcare industrial cooperation between Taiwan and Japan to get access to China’s market, the DOIS has arranged negotiations with the Japan Medical Equipment Association, Japan Medical Care Association, Japan Analytical Instruments Manufacturers’ Association and others with the assistance of both Economic Division of the Taipei Economic and Cultural Representative Office in Japan and Mizuho Bank.  The DOIS hopes to create a long-term cooperation mechanism between medical and healthcare providers of Japan and Taiwan by signing MOU between associations from both countries.  (2010.08)
/DC