20.4.2 Process of Japan-China Cooperation
in a Third-Country Market
The process of cooperation between Japan and China in a third-country market is
shown in Fig. 20.6. Japanese and Chinese companies provide funds, technology, and
EPC following the basic principles of mutual commerce, mutual development, and
mutual enjoyment and support or undertake projects in fields such as infrastructure,
Table 20.6 Examples of Japan-China cooperation in third-country markets in the fields of energy
and the environment
Sort
Field
Overview
Type
1
Resource
mining
Japan financed a resource mining operation in Egypt with approximately $50 million. China manages the project generally
Type
2
Natural gas
mining
The Dutch Royal Dutch Shell, China Petroleum and Natural Gas Corporation (CNPC) Mitsubishi Trading Co., Korea Gas Corporation
(KOGAS), and Canada jointly carry out a natural gas mining business.
The result was 12 million tons of LNG generated per year and obtained a
25-year export license (no export destination restrictions)
Type
3
Hydropower
China Hydroelectric Process Advisory Group Co., Ltd., and Toshiba
Hydroelectric Equipment (Hangzhou) Co., Ltd., have provided power
generation facilities with a total output of 260 MW to the Chun Son
Hydroelectric Power Plant in Vietnam
Type
3
Hydropower
Zhejiang Guomao Dongfang Electric Machinery Co., Ltd., and Toshiba
Hydroelectric Equipment (Hangzhou) Co., Ltd., will provide a total
output of 288 MW to the Upper Yeywa Hydroelectric Power Plant in
Myanmar
China
(CompanyGovernment)
Japan
(CompanyGovernment)
Negotiation, joint construction and sharing
Information provision, subsidy support, simplified
examination, risk management
Funding, Technology, Labor, EPC
The third country (CompanyGovernment)
• "Market principle + profit distribution"
method
•
Needs for third-country development plans
and market environment
•
Infrastructure, logistics, energy-saving
environment, factory modernization and
remodeling projects
Input
Economic profit
(including energy
saving profit)
Environmental benefits
CO2 reduction effect
Environmental benefit
SOx, NOx reduction
effects
Other social benefits
(e.g. improvement of
comprehensive ability)
Output
Fig. 20.6 Schematic diagram of Japan-China cooperation in a third-country market. (Source: Zhou
2019)
372
Y. Ling et al.
in a Third-Country Market
The process of cooperation between Japan and China in a third-country market is
shown in Fig. 20.6. Japanese and Chinese companies provide funds, technology, and
EPC following the basic principles of mutual commerce, mutual development, and
mutual enjoyment and support or undertake projects in fields such as infrastructure,
Table 20.6 Examples of Japan-China cooperation in third-country markets in the fields of energy
and the environment
Sort
Field
Overview
Type
1
Resource
mining
Japan financed a resource mining operation in Egypt with approximately $50 million. China manages the project generally
Type
2
Natural gas
mining
The Dutch Royal Dutch Shell, China Petroleum and Natural Gas Corporation (CNPC) Mitsubishi Trading Co., Korea Gas Corporation
(KOGAS), and Canada jointly carry out a natural gas mining business.
The result was 12 million tons of LNG generated per year and obtained a
25-year export license (no export destination restrictions)
Type
3
Hydropower
China Hydroelectric Process Advisory Group Co., Ltd., and Toshiba
Hydroelectric Equipment (Hangzhou) Co., Ltd., have provided power
generation facilities with a total output of 260 MW to the Chun Son
Hydroelectric Power Plant in Vietnam
Type
3
Hydropower
Zhejiang Guomao Dongfang Electric Machinery Co., Ltd., and Toshiba
Hydroelectric Equipment (Hangzhou) Co., Ltd., will provide a total
output of 288 MW to the Upper Yeywa Hydroelectric Power Plant in
Myanmar
China
(CompanyGovernment)
Japan
(CompanyGovernment)
Negotiation, joint construction and sharing
Information provision, subsidy support, simplified
examination, risk management
Funding, Technology, Labor, EPC
The third country (CompanyGovernment)
• "Market principle + profit distribution"
method
•
Needs for third-country development plans
and market environment
•
Infrastructure, logistics, energy-saving
environment, factory modernization and
remodeling projects
Input
Economic profit
(including energy
saving profit)
Environmental benefits
CO2 reduction effect
Environmental benefit
SOx, NOx reduction
effects
Other social benefits
(e.g. improvement of
comprehensive ability)
Output
Fig. 20.6 Schematic diagram of Japan-China cooperation in a third-country market. (Source: Zhou
2019)
372
Y. Ling et al.