increased Russia’s economic profits. However, the 2009 financial crisis caused the
price of natural gas to fall and Russia’s economic profits to decline. From 2010 to
2013, the price of natural gas and potential profits for Russia rose again with
economic recovery. However, the shale revolution in 2013 will have a considerable
impact on natural gas, significantly lowering the price of LNG and reducing the
potential economic profits for Russia again.
20.4 Cooperation of Japan and China in a Third-Country
Market
20.4.1 Types of Japan-China Cooperation in a Third-Country
Market
Based on our analysis, there are significant reduction potentials if India and Russia
could reach levels of energy consumption intensity and CO 2 emission intensity in
Japan. These reduction potentials could create a vast environmental market. However, when Japan cooperates with India and Russia alone, there are many engineering, procurement, and construction (EPC) issues such as barriers to plant cost
(economic efficiency) and transfer of appropriate technology that considers localization, such as financing. Therefore, for Japanese companies to access new markets
in the global economy, a new form of business is needed that surpasses the limits of
self-sufficiency and overcomes challenges by cooperating with, and complementing
the strengths of, foreign companies. It is desirable to promote third-country cooperation to improve competitiveness regardless of infrastructure (Ministry of Economy,
Trade, and Industry 2019).
For China to promote development of its domestic economy and realize the BRI
of a wide-reaching economic zone, it should utilize the advanced technologies of
developed countries. Then, the development needs of Belt and Road countries are
effectively linked, and individualized benefits can be coordinated in such a way as to
achieve a win-win result with reciprocal complementation. Detailed quantitative
analysis of a case study is provided later in this chapter.
Examples of Japan-China cooperation in third-country markets in the fields of
energy and the environment are summarized in Table 20.6 and can take the following forms.
Type 1 Japan supervises the investment, and China manages the project.
Type 2 Japan and China oversee investment and project management together.
Type 3 Japan provides the technology, and China provides EPC.
20 Potential for Technical Cooperation Between Japan and China in a Third-Country. . .
371
price of natural gas to fall and Russia’s economic profits to decline. From 2010 to
2013, the price of natural gas and potential profits for Russia rose again with
economic recovery. However, the shale revolution in 2013 will have a considerable
impact on natural gas, significantly lowering the price of LNG and reducing the
potential economic profits for Russia again.
20.4 Cooperation of Japan and China in a Third-Country
Market
20.4.1 Types of Japan-China Cooperation in a Third-Country
Market
Based on our analysis, there are significant reduction potentials if India and Russia
could reach levels of energy consumption intensity and CO 2 emission intensity in
Japan. These reduction potentials could create a vast environmental market. However, when Japan cooperates with India and Russia alone, there are many engineering, procurement, and construction (EPC) issues such as barriers to plant cost
(economic efficiency) and transfer of appropriate technology that considers localization, such as financing. Therefore, for Japanese companies to access new markets
in the global economy, a new form of business is needed that surpasses the limits of
self-sufficiency and overcomes challenges by cooperating with, and complementing
the strengths of, foreign companies. It is desirable to promote third-country cooperation to improve competitiveness regardless of infrastructure (Ministry of Economy,
Trade, and Industry 2019).
For China to promote development of its domestic economy and realize the BRI
of a wide-reaching economic zone, it should utilize the advanced technologies of
developed countries. Then, the development needs of Belt and Road countries are
effectively linked, and individualized benefits can be coordinated in such a way as to
achieve a win-win result with reciprocal complementation. Detailed quantitative
analysis of a case study is provided later in this chapter.
Examples of Japan-China cooperation in third-country markets in the fields of
energy and the environment are summarized in Table 20.6 and can take the following forms.
Type 1 Japan supervises the investment, and China manages the project.
Type 2 Japan and China oversee investment and project management together.
Type 3 Japan provides the technology, and China provides EPC.
20 Potential for Technical Cooperation Between Japan and China in a Third-Country. . .
371