Japan Federation of Economic Organizations, also known as Keidanren, is an economic body whose members include many Japanese major companies. Its chairman Mr. Okuda, also the president of the Toyota Automobile and known in Japan as the "prime minister of the financial world", is the natural spokesman of the Japanese industrial and economic circles. Japanese media recently reported that chairman Okuda advised Prime Minister Koizumi to "build a harmonious atmosphere for the Japan-China relations". But PM Koizumi said he would not change his beliefs and would continue to pay visit to the Yasukuni Shrine next year. During his visit to Beijing chairman Okuda accepted an exclusive interview by People's Daily during his busy schedule.

People's Daily: How would you comment on the current China-Japan economic relations?

Okuda: From consumption and investment perspectives China is the most attractive market for Japanese companies. Talks about the "China threat" theory are no longer heard these days. Not only products of Japanese companies have huge market in China but products made by Japanese companies in China can also be sold to other overseas markets. The Japan-China economic relations are getting closer.

People's Daily: How was it that you rarely mentioned China in your recent speech on East Asian economic cooperation?

Okuda: When talking about East Asian economic cooperation the first three countries that usually come to a Japanese's mind are Japan, China and ROK. I think the three countries all realized that they would be important partners of one another. As to the ways of East Asian economic cooperation the three countries are conducting consultations.

People's Daily: It is said that many Japanese companies have been to northeast China for investigation. What is the view of the Japanese economic circles on Chinese government's revitalization of northeast China?

Okuda: There are indeed many Japanese entrepreneurs who have been to northeast China many times for investigation. I heard from the leader of the Japan-China Economic Association Delegation that compared with the past the three northeast provinces have changed a great deal and they mean opportunities for Japanese companies. Japan also has its northeast regions and they have held economic cooperation symposiums in Sendai and Tokyo this year together with China's northeast regions. According to statistics there are more than 100 northeast China revitalization projects. Keidanren will continue to support the revitalization of northeast China.

People's Daily: You mentioned the China factor and the US factor in your speech on the current situation and prospect of the Japanese economy. What is your view on the Chinese economy through your visit to China?

Okuda: China's economic growth was 9.1 percent last year and is expected to maintain at 7 percent even in the long term. Difficulties appear accompanying the fast economic development. The state-owned enterprises and financial industry are the focal points of reform. During this visit to China I listened to the introduction by Premier Wen Jiabao and POB governor Zhou Xiaochuan on the Chinese economy. I increased my understanding of the adjustment on the Chinese economy and my reassurance. I believe the Chinese economy will realize a soft landing.

People's Daily: You had a meeting with the new Chinese Ambassador to Japan Wang Yi in Tokyo before your visit to China. Could you please tell us on what subjects you have exchanged views?

Okuda: The one that left me with the deepest impression is that Ambassador Wang Yi said the China-Japan relationship is "politically chilly and economically hot".

People's Daily: Are you worried that the "chilly politics" would affect the "hot economics"?

Okuda: By far the "chilly politics" has not affected the "hot economics". In the future I think the "hot economics" would have an indirect influence on the "chilly politics". Although it is impossible for people in the economic circles to solve political problems directly a better development of the Japan-China economic relations would certainly have a constructive impact on the political relations between the two countries.

By People's Daily Online