Speaking at a Tokyo hotel on Monday, European External Trade Commissioner Peter Mandelson had this to say:
“For decades Japan has taken advantage of an open global investment climate, yet at home it remains the most closed investment market in the developed world.”
His comment, it seems, was prompted by the government’s rejection of a British hedge fund’s plans to increase its stake in the Electric Power Development Co., also known as J-Power, on the grounds of energy security. This is the latest in a string of high-profile rejections of foreign capital by the Japanese government and courts. In August of 2007, the Supreme Court ruled against Steel Partners, a U.S. investment fund which was making a takeover bid for Bull-Dog Sauce Co., upholding a lower-court verdict that had labeled the fund an “abusive acquirer”. In a March 10 contribution to the Japan Times, German business consultant Jochen Legewie comments:
“Opposition to hostile takeover attempts that originate off-shore is nothing unusual in Europe, or the even the U.S., but it was the blunt phrase coined by Japan’s highest legal institution that shocked the foreign business community. For many observers, both foreign and Japanese, the overwhelming lesson to be learned from this case was that external capital is no longer welcome in Japan.”
And during the debate over the idea of introducing a cap on foreign investment in Japan’s major airports, the governor of Chiba Prefecture, where Japan’s main international airport is located, made these remarks:
“Restrictions on foreign investment are necessary to ensure Japanese and Chiba citizen’s security. It would be a great problem if foreign investors in airport companies made decisions that would harm the interests of both Japan and Chiba Prefecture, if not as bad as terrorism.”
It’s interesting how terrorism comes up when foreigners are mentioned. Of course, xenophobia is not only a sticking point for those who would like to invest in Japan. The controversial practice of forcing foreigners who come to Japan to submit fingerprints was reintroduced last October with the new policy of taking fingerprints and photographs of all foreigners when they enter Japan, even those who actually live here. The justification for this heavy-handed measure is that it will prevent terrorists from entering the country and reduce the crime rate.
So, here we find ourselves in 21st century Japan, and foreigners are still stereotyped as either being rapacious businessmen, terrorists, or just out and out criminals. It goes without saying that, in the end, Japan is the country that will be hurt by its own discriminatory policies. Even so, I don’t foresee any change in the status quo. I mean, we are talking about a country that has designated the creation of humanoid robots as a main priority in order to stave off the need for immigrant workers. I understand the frustration of the aforementioned Peter Mandelson, but I don’t think that his complaints will cause a sudden change of heart in the Japanese government. Actually, his kvetching reminds me of an old Beatles’ song which goes, in part, like this:
“Come on, come on, come on, come on,
Please please me oh yeah like I please you.
I don’t want to sound complaining
But you know there’s always rain in my heart.
I do all the pleasing with you
It’s so hard to reason with you.
Oh yeah why do you make me blue?”
Please please me was released in 1963 which was the year when Beatlemania really started to take off, so I’m sure the Beatles were in no short supply of people, especially those of the female persuasion, who were willing to please them. I’m afraid that Peter Mandelson, on the other hand, is not likely to get any joy from his Japanese counterparts.
