Keiretsu

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A keiretsu (Japanese: 系列, literally system, series, grouping of enterprises, order of succession) is a set of companies with interlocking business relationships and shareholdings. In the legal sense, it is a type of informal business group that are loosely organized alliances within the social world of Japan's business community.[1] The keiretsu system predominated the Japanese economy for the second half of the 20th century, and, to a lesser extent,[2] continues to do so in the early 21st century.

The members' companies own small portions of the shares in each other's companies, centered on a core bank; this system helps insulate each company from stock market fluctuations and takeover attempts, thus enabling long-term planning in projects. It is a key element of the manufacturing industry in Japan.

History[edit]

The prototypical keiretsu appeared during the Japanese economic miracle which followed World War II, amid the collapse of family-controlled vertical monopolies called zaibatsu.

The zaibatsu had been at the heart of economic and industrial activity within the Empire of Japan since Japanese industrialization accelerated during the Meiji Era.[3] They held great influence over Japanese national and foreign policies which only increased following the Japanese victories in the Russo-Japanese War of 1904–1905[3] and World War I.[4] During the inter-war period the zaibatsu aided Japanese militarism and benefited from their conquest of East Asia by receiving lucrative contracts.[3]

Seizure of the zaibatsu families' assets, 1946

After the surrender of Japan the Allied occupation forces partially attempted to dissolve the zaibatsu which had worked closely with the militarists during the first half of the 20th century and during the war.[3] However, the United States government later rescinded those orders in an effort to reindustrialize Japan as a bulwark against Communism in Asia, so the zaibatsu were never completely dissolved.[5]

Types[edit]

The two types of keiretsu, horizontal and vertical, can be further categorized as:

  • Kigyō shūdan (企業集団, "horizontally diversified business groups")
  • Seisan keiretsu (生産系列, "vertical manufacturing networks")
  • Ryūtsū keiretsu (流通系列, "vertical distribution networks")

Horizontal keiretsu[edit]

The primary aspect of a horizontal keiretsu (also known as financial keiretsu) is that it is set up around a Japanese bank through cross-shareholding relationships with other companies. The bank assists these companies with a range of financial services. The leading horizontal Japanese keiretsu, also referred to as the "Big Six", include: Fuyo, Sanwa, Sumitomo, Mitsubishi, Mitsui, and DKB Group. Horizontal keiretsu may also have vertical relationships, called branches.

Horizontal keiretsu peaked around 1988, when over half of the value in the Japanese stock market consisted of cross-shareholdings. Since then, banks have gradually reduced their cross-shareholdings. The Japanese corporate governance code, effective from June 2015, requires listed companies to disclose a rationale for their cross-shareholdings. Partly as a result of this requirement, the three Japanese "megabanks" descended from the six major keiretsu banks (namely Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group) have indicated plans to further reduce their balance of cross-shareholding investments.[6]

Vertical keiretsu[edit]

Vertical keiretsu (also known as industrial or distribution keiretsu) are used to link suppliers, manufacturers, and distributors of one industry. Banks have less influence on vertical keiretsu. Examples of this type include Toyota, Toshiba, and Nissan.[7] One or more sub-companies, arranged in tiers of importance, are created to benefit the parent company. Major suppliers form the second tier beneath the parent, and smaller manufacturing companies make up the third and fourth tiers. Those at the highest levels are most profitable, and most insulated from fluctuations in the market.[8]

Some vertical keiretsu may belong to one or another horizontal keiretsu.[7] Some vertical keiretsu are family businesses, such as the Hitotsubashi/Shogakukan, Kodansha and APA groups. Studies have found these vertical keiretsus, particularly those that belong to the same horizontal keiretsu, are more likely to form alliances than the other types or even those companies where one or two have keiretsu affiliations.[9] Vertical keiretsu is considered an effective and competitive organizational model in the car industry.[10]

In Japan[edit]

During the occupation of Japan, under the Supreme Commander of the Allied Powers, General Douglas MacArthur, a partially successful attempt was made to dissolve the zaibatsu in the late 1940s. Sixteen zaibatsu were targeted for complete dissolution, and 26 more for reorganization after dissolution. However, the companies formed from the dismantling of the zaibatsu were later reintegrated. The dispersed corporations were reinterlinked through share purchases to form horizontally integrated alliances across many industries. Where possible, keiretsu companies would also supply one another, making the alliances vertically integrated, as well. In this period, official government policy promoted the creation of robust trade corporations that could withstand heavy pressures from intensified trade competition.[11]

The major keiretsu were each centered on one bank, which lent money to the keiretsu member companies and held equity positions in the companies. Each bank had great control over the companies in the keiretsu and acted as a monitoring and emergency bail-out entity. One effect of this structure was to minimize the presence of hostile takeovers in Japan, because no entities could challenge the power of the banks. Although the divisions between them have blurred in recent years, there have been eight major postwar keiretsu:[12]

Succeeded into Name Bank Major group companies
MUFG Mitsubishi Mitsubishi Bank (until 1996)
Bank of Tokyo-Mitsubishi (1996–2005)
MUFG Bank (2006– )
Mitsubishi Trust and Banking
Financial: Tokio Marine and Fire Insurance, Mitsubishi Estate, Meiji Mutual Fund
Construction: Pacific Consultants International
Food: Coca-Cola Bottling of Northern New England, Kirin Brewery, Morinaga & Company, Morinaga Milk Industry, Sapporo Breweries
Electronics: Hitachi, Matsushita Electric Industrial Co., Ltd., Mitsubishi Electric, Mitsubishi Precision, NEC Corporation, Pioneer Electronic Corporation, Sharp Corporation, Sony Corporation, Victor Company of Japan, Ltd.
Entertainment: Avex Trax, BMG Victor, Inc., CIC-Victor Video, Ltd., Fujisankei Communications Group (Fuji Television, Nippon Broadcasting System, Pony Canyon), MCA Victor, Inc., Nippon Columbia, Nippon Crown, Nippon Television, Pack-In-Video, Pioneer LDC Inc., PolyGram K.K. (Nippon Phonogram Co., Ltd., Polydor K.K.), Sony Computer Entertainment, Sony Music Entertainment, Sony Pictures Entertainment, other Sony subsidiaries, Teichiku Records, Tokyo Broadcasting System, TV Asahi, TV Tokyo, VAP, Inc., Viacom Inc. (MTV Networks, Paramount Pictures), Victor Musical Industries, Inc., Warner-Pioneer Corporation
Trading and Commerce: Mitsubishi Corporation
Vehicles: Fuji Heavy Industries (Subaru), Honda Motor, Isuzu, Mazda, Mitsubishi Fuso Truck and Bus Corporation, Mitsubishi Heavy Industries, Mitsubishi Motors, Suzuki Motor
Petroleum: Nippon Oil, Mitsubishi Oil, Mitsubishi Nuclear Fuel
Precision Machinery: Nikon
Chemicals: Mitsubishi Chemical, Mitsubishi Gas Chemical, Mitsubishi Rayon Co., Ltd., Mitsubishi Materials Corp., Mitsubishi Plastics Industries, Asahi Glass, Nippon Synthetic Chemical Industries (Nippon Gosei)
Paper: Mitsubishi Paper Mills Ltd.
Iron and Steel: Mitsubishi Steel
Shipping: Nippon Yusen Kaisha – "NYK"
Engineering: Mitsubishi Heavy Industries
SMFG Mitsui Mitsui Bank (until 1990)
Sakura Bank (1990–2001)
Sumitomo Mitsui Bank (2001– )
Sony Financial,
Sony Bank
Financial: Mitsui Real Estate, Mitsukoshi, Mitsui Mutual Life, Mitsui Marine & Fire
Food: Nippon Flour Mills, Mitsui Sugar, Asahi Breweries, Sapporo Breweries, Suntory
Chemicals: Fujifilm, Mitsui Toatsu Chemicals, Mitsui Petrochemical Industries, Toagosei, Denki Kagaku Kogyo, Daicel Chemical Industries, Mitsui Pharmaceuticals, Mitsui Toatsu Fertilizers, Mitsui Toatsu Dyes, Toray
Trading and Commerce: Mitsui Bussan
Vehicles: Daihatsu, Fuji Heavy Industries (Subaru), Honda Motor, Toyota
Petroleum: General Sekiyu, Kyokuto Petroleum Industries
Electronics: Fujifilm, Ibiden, Matsushita Electric Industrial Co., Ltd., Mitsubishi Electric, Sony Corporation, Toshiba, Victor Company of Japan, Ltd., Yaussa Corporation
Iron and Steel: Japan Steel Works
Gaming: Sony Computer Entertainment
Entertainment: BMG Victor, Inc., CIC-Victor Video, Ltd., Fujisankei Communications Group (Fuji Television, Nippon Broadcasting System, Pony Canyon), MCA Victor, Inc., Nippon Crown, Nippon Television, Pack-In-Video, PolyGram K.K. (Nippon Phonogram Co., Ltd., Polydor K.K.), Sony Computer Entertainment, Sony Music Entertainment, Sony Pictures Entertainment, other Sony subsidiaries, Teichiku Records, Toshiba-EMI Limited, Tokyo Broadcasting System, TV Asahi, TV Tokyo, VAP, Inc., Victor Musical Industries, Inc.
Shipping: Mitsui O.S.K. Lines ("MOL")
Engineering: Mitsui Engineering & Shipbuilding
SMFG Sumitomo Sumitomo Bank (until 2001)
Sumitomo Mitsui Bank (2001– ), Sumitomo Trust and Banking
Financial: Sumitomo Corporation, Sumitomo Corporation of America, Sumitomo Mitsui Financial Group, Sumitomo Trust & Banking, Sumitomo Life Insurance Co., Sumitomo Real Estate, Mitsui Sumitomo Insurance Co., Ltd., Sumitomo Realty & Development Co., Ltd., Presidio Ventures,

Construction: Sumitomo Mitsui Construction Co., Ltd., Sumitomo Densetsu, Sumitomo Osaka Cement Co., Ltd.,
Food: Asahi Breweries, Coca-Cola Bottling of Northern New England, Ezaki Glico, Kirin Brewery, Suntory
Rail: The Sumitomo Warehouse Co., Ltd., Hanshin Railway, Keihan Railway, Nankai Railway
Trading and Commerce: Itochu, Sumitomo Corporation
Vehicles: Fuji Heavy Industries (Subaru), Mazda, Mitsubishi Fuso Truck and Bus Corporation, Mitsubishi Heavy Industries, Mitsubishi Motors, Nissan
Precise machinery: Sumitomo Heavy Industries, Ltd.,
Electronics: Matsushita Electric Industrial Co., Ltd., Mitsubishi Electric, NEC Corporation, Pioneer Electronic Corporation, Sanyo Electric Co., Ltd., Sharp Corporation, Sumitomo Electric Industries, Ltd., Toshiba, Victor Company of Japan, Ltd.
Iron and Steel: Sumitomo Metal Industries, Ltd., Mezon Stainless Steel Fzco., Sumitomo Light Metal Industries, Ltd.
Chemicals: Joyce Chen Products, Sumitomo Chemicals, Nippon Sheet Glass Co., Ltd., Sumitomo Bakelite Co., Ltd., Sumitomo Rubber Industries, Ltd., Dainippon Sumitomo Pharma,
Mining: Sumitomo Metal Mining Co., Ltd.
Forestry: Sumitomo Forestry Co., Ltd.
Infrastructure: Nippon Koei
Entertainment: Avex Trax, BMG Victor, Inc., CIC-Victor Video, Ltd., Fujisankei Communications Group (Fuji Television, Nippon Broadcasting System, Pony Canyon), King Record Co., Ltd., MCA Victor, Inc., Nippon Crown, Nippon Television, Pack-In-Video, Pioneer LDC Inc., PolyGram K.K. (Nippon Phonogram Co., Ltd., Polydor K.K.), Teichiku Records, Toshiba-EMI Limited, TV Asahi, TV Tokyo, VAP, Inc., Viacom Inc. (MTV Networks, Paramount Pictures), Victor Musical Industries, Inc., Warner-Pioneer Corporation

Mizuho Fuyo Fuji Bank (until 2000)
Mizuho Bank (2000– )
Yasuda Trust and Banking
Yamaichi Securities
Financial: Yasuda Mutual Life, Yasuda Marine & Fire
Food: Nisshin Flour Milling, Sapporo Breweries
Precision Machinery: Canon, Hitachi, Ltd., Ricoh
Electronics: Fuji Electric, Fujitsu, Hitachi, Ltd., Pioneer Electronic Corporation, Sharp Corporation, Sony Corporation, Victor Company of Japan, Ltd.
Trading and Commerce: Marubeni
Chemicals: Showa Denko, NOF Corporation, Kureha Corporation, Nippon Sanso, Hitachi Chemical, Asahi Kasei
Rail: Tobu Railway
Vehicles: Daihatsu, Fuji Heavy Industries (Subaru), Nissan, Yamaha
Retail: Matsuya
Entertainment: BMG Victor, Inc., CIC-Victor Video, Ltd., Fujisankei Communications Group (Fuji Television, Nippon Broadcasting System, Pony Canyon), MCA Victor, Inc., Nippon Columbia, Nippon Television, Pack-In-Video, Pioneer LDC Inc., PolyGram K.K. (Nippon Phonogram Co., Ltd., Polydor K.K.), Sony Computer Entertainment, Music Entertainment, Sony Pictures Entertainment, other Sony subsidiaries, Tokyo Broadcasting System, TV Asahi, TV Tokyo, VAP, Inc., Viacom Inc. (MTV Networks, Paramount Pictures), Victor Musical Industries, Inc., Warner-Pioneer Corporation
Mizuho Dai-Ichi Kangyo (DKB) Dai-Ichi Kangyo Bank (until 2000)
Mizuho Bank (2000– )
Chuo Trust
Kankaku Securities
Long-Term credit Bank of Japan (until 2000)
Shinsei Bank (2000–)
Nippon Credit Bank (until 2001)
Aozora Bank (2001–)
Orient Group
Financial: Fukoku Mutual Life, Asahi Mutual Life, Nissan Marine & Fire, Taisei Marine & Fire
Food: Asahi Breweries, Coca-Cola Bottling of Northern New England, Kirin Brewery, Morinaga & Company, Morinaga Milk Industry, Sapporo Breweries
Electronics: Fuji Electric, Fujitsu, Hitachi, Ltd., Matsushita Electric Industrial Co., Ltd., Pioneer Electronic Corporation, Mitsubishi Electric, NEC Corporation, Nippon Columbia, Sharp Corporation, Sony Corporation, Toshiba, Victor Company of Japan, Ltd., Yaskawa Electric
Vehicles: Daihatsu, Fuji Heavy Industries (Subaru), Honda Motor, Isuzu, Kawasaki Heavy Industries, Mazda, Mitsubishi Fuso Truck and Bus Corporation, Mitsubishi Heavy Industries, Mitsubishi Motors, Nissan, Suzuki Motor, Toyota
Power Generation: Tokyo Electric Power
Petroleum: Showa Shell Sekiyu
Precision Machinery: Asahi Optical
Trading and Commerce: Seibu, Itochu,
Iron and Steel: Kawasaki Steel, Japan Metals, Kobe Steel
Chemicals: Denki Kagaku Kogyo-Mitsui Group, Nippon Zeon, Asahi Denka Kogyo, Sankyo Co., Lion Corporation, Kyowa Hakko Kogyo, Asahi Chemical Industries,
Shipping: Kawasaki Kishen Kaisha – K-Line
Entertainment: BMG Victor, Inc., CIC-Victor Video, Ltd., Fujisankei Communications Group (Fuji Television, Nippon Broadcasting System, Pony Canyon), MCA Victor, Inc., Nippon Columbia, Nippon Crown, Nippon Television, Pack-In-Video, Pioneer LDC Inc., PolyGram K.K. (Nippon Phonogram Co., Ltd., Polydor K.K.), Sony Computer Entertainment, Sony Music Entertainment, Sony Pictures Entertainment, other Sony subsidiaries, Teichiku Records, Tokuma Japan Communications, Tokyo Broadcasting System, Toshiba-EMI Limited, TV Asahi, TV Tokyo, VAP, Inc., Viacom Inc. (MTV Networks, Paramount Pictures), Victor Musical Industries, Inc., Warner-Pioneer Corporation
MUFG Sanwa ("Midorikai") Sanwa Bank (until 2002)
UFJ Bank (2002–2006)
Bank of Tokyo-Mitsubishi UFJ (2006– )
Toyo Trust and Banking
Food: Asahi Breweries, Coca-Cola Bottling of Northern New England, Ezaki Glico, Itoham Foods, Kirin Brewery, Sapporo Breweries, Suntory
Rail: Hankyu Railway, Keisei Railway
Steel: Kobe Steel, Nakayama Steel Works, Nisshin Steel
Precision Machinery: Konica Minolta, Hoya Corporation
Petroleum: Cosmo Oil
Electronics: Hitachi, Iwatsu Electric, Kyocera, Matsushita Electric Industrial Co., Ltd, NEC Corporation, Nitto Denko, Pioneer Electronic Corporation, Sharp Corporation, Sony Corporation, Victor Company of Japan, Ltd.
Trading and Commerce: Takashiama, Orix, Nissho Iwai
Chemicals: Ube Industries, Tokuyama Corp, Hitachi Chemical, Sekisui Chemical, Kansai Paint, Tanabe Seiyaku, Astellas Pharma, Daiso Co., Teijin, Unitika Fukusure
Vehicles: Daihatsu, Fuji Heavy Industries (Subaru), Honda Motor, Hitachi Zosen Corporation, Isuzu, Mazda, Mitsubishi Fuso Truck and Bus Corporation, Mitsubishi Heavy Industries, Mitsubishi Motors, Nissan, Suzuki Motor, Toyota
Retail: Takashimaya
Entertainment: Avex Trax, BMG Victor, Inc., CIC-Victor Video, Ltd., Fujisankei Communications Group (Fuji Television, Nippon Broadcasting System, Pony Canyon), MCA Victor, Inc., Nippon Columbia, Nippon Television, Pack-In-Video, Pioneer LDC Inc., PolyGram K.K. (Nippon Phonogram Co., Ltd., Polydor K.K.), Shin-Maywa, Sony Computer Entertainment, Sony Music Entertainment, Sony Pictures Entertainment, other Sony subsidiaries, Toho, Tokuma Japan Communications, TV Asahi, TV Tokyo, VAP, Inc., Viacom Inc. (MTV Networks, Paramount Pictures), Victor Musical Industries, Inc., Warner-Pioneer Corporation
MUFG Tokai
(Toyota Group)
Tokai Bank
Chuo Trust
Food: Kagome
Vehicles: Daihatsu, Fuji Heavy Industries (Subaru), Honda Motor, Isuzu, Mitsubishi Fuso Truck and Bus Corporation, Mitsubishi Heavy Industries, Mitsubishi Motors, Nissan, Suzuki Motor, Toyota
Steel: Daido Steel
Precision Machinery: Ricoh
Petroleum: Idemitsu Kosan
Electronics: Hitachi, Matsushita Electric Industrial Co., Ltd., Pioneer Electronic Corporation, Sony Corporation, Toshiba Corporation, Ushio Industries, Victor Company of Japan, Ltd.
Trading and Commerce: Toyota Tsusho Corporation
Entertainment: BMG Victor, Inc., CIC-Victor Video, Ltd., MCA Victor, Inc., Nippon Columbia, Pack-In-Video, Pioneer LDC Inc., PolyGram K.K. (Nippon Phonogram Co., Ltd., Polydor K.K.), Sony Computer Entertainment, Sony Music Entertainment, Sony Pictures Entertainment, other Sony subsidiaries, Teichiku Records, Toshiba-EMI Limited, TV Asahi, Victor Musical Industries, Inc., Warner-Pioneer Corporation
Mizuho IBJ
Industrial Bank of Japan
Chuo Trust
New Japan Securities
Wako Securities
IBJ Securities
Vehicles: Daihatsu, Fuji Heavy Industries (Subaru), Honda Motor, Isuzu, Mazda, Mitsubishi Fuso Truck and Bus Corporation, Mitsubishi Heavy Industries, Mitsubishi Motors, Nissan, Suzuki Motor, Toyota
Precision Machinery: Ikegai, Riken
Electronics: Fuji Electric, Fujitsu, Hitachi, Ltd., Matsushita Electric Industrial Co., Ltd., NEC Corporation, Sumitomo Electric Industries, Ltd., Sony Corporation, Toshiba Corporation, Victor Company of Japan, Ltd.
Chemicals: Joyce Chen Products, Nippon Soda, Chisso Corporation, Nissan Chemical Industries, Tosoh Corporation, Hodogaya Chemical, Plas-Tech, Taihei Chemical, Japan Organo, Kuraray
Food: Asahi Breweries
Entertainment: BMG Victor, Inc., CIC-Victor Video, Ltd., Fujisankei Communications Group (Fuji Television, Nippon Broadcasting System, Pony Canyon), MCA Victor, Inc., Nippon Columbia, Nippon Television, Pack-In-Video, PolyGram K.K. (Nippon Phonogram Co., Ltd., Polydor K.K.), Sony Computer Entertainment, Sony Music Entertainment, Sony Pictures Entertainment, other Sony subsidiaries, Teichiku Records, Tokyo Broadcasting System, Toshiba-EMI Limited, TV Asahi, TV Tokyo, VAP, Inc., Viacom Inc. (MTV Networks, Paramount Pictures), Victor Musical Industries, Inc.

Toyota is considered the biggest of the vertically integrated keiretsu groups, although the company is rather considered as a "emerged" keiretsu, along with Softbank, Seven & I Holdings Co.[13] The banks at the top are not as large as normally required, so it is actually considered to be more horizontally integrated than other keiretsu.

The Japanese recession in the 1990s had profound effects on the keiretsu. Many of the largest banks were hit hard by bad loan portfolios and forced to merge or go out of business. This had the effect of blurring the lines between the individual keiretsu: Sumitomo Bank and Mitsui Bank, for instance, became Sumitomo Mitsui Banking Corporation in 2001, while Sanwa Bank (the banker for the Hankyu-Toho Group) became part of Bank of Tokyo-Mitsubishi UFJ.

Generally, these causes gave rise to a strong notion in the Japanese business community that the old keiretsu system was not an effective business model, and led to an overall loosening of keiretsu alliances. While they still exist, they are not as centralized or integrated as they were before the 2000s. For instance, many troubled Japanese companies are faced with a new reality in which receiving financial support from their main banks are getting harder and unlikelier than ever before. The companies include Sharp Corporation and Toshiba, both the iconic Japanese corporations that were forced to accept foreign investment in their aftermath of financial difficulties in 2010s.

This changed environment, in turn, has led to a growing corporate acquisition industry in Japan, as companies are no longer able to be easily "bailed out" by their banks, as well as rising derivative litigation by more independent shareholders.

Outside Japan[edit]

The keiretsu model is fairly unique to Japan. The closest foreign counterpart would be the Korean chaebol, but many diversified non-Japanese businesses groups have been described as keiretsu, such as the Virgin Group (UK), Tata Group (India), the Colombian Grupo Empresarial Antioqueño and the Venezuelan Grupo Cisneros.

Some industry consortiums and alliances have also been described in this way. The most common examples are the airline code-sharing alliances, such as Oneworld and Star Alliance. While those arrangements link a broad range of companies around a common organization, the groupings tend to have minimal financial entanglement and are generally designed around gaining access to foreign markets within industries that governments consider sensitive such as mining and aviation when foreign ownership is limited or even banned.

The automotive and industries have created broad cross-ownership networks across nations, but the national companies are normally independently managed. Banks cited as being central to keiretsu-like systems include Deutsche Bank and some keiretsu-like systems, generally referred to as trusts, were created by investment banks in the United States such as JP Morgan and Mellon Financial/Mellon family beginning in the late 19th century (roughly the same period they were created in Japan), but they were largely curtailed through anti-trust legislation championed by Theodore Roosevelt in the early part of the 20th century. A form of keiretsu can also be found in the cross-shareholdings of the large media companies throughout most developed nations.[14] These are largely designed to link content producers to particular distribution channels, and larger content projects, such as expensive movies, are often incorporated with ownership spread across a number of larger companies.

Contrarian view[edit]

Harvard Law School professor J. Mark Ramseyer and University of Tokyo professor Yoshiro Miwa have argued that the postwar keiretsu are a "fable" created by Marxist thinkers in the 1960s so as to argue that monopoly capital dominated the Japanese economy. They point to the sparsity and tenuousness of cross-shareholding relationships within the keiretsu, the inconsistency in members' relationships with the "main banks" of each keiretsu, and the lack of power and reach of the zaibatsu alumni "lunch clubs" which are often argued to form a core of keiretsu governance.[15]

United States–Japan bilateral relationship[edit]

By April 2015, U.S. Trade Representative Michael Froman and Japanese Economy Minister Akira Amari, representing the two largest economies of the 12-nation Trans-Pacific Partnership, were involved in bilateral talks regarding agriculture and auto parts, the "two largest obstacles for Japan."[16] These bilateral accords would open each other's markets for products such as rice, pork and automobiles.[16]

During the two-day ministerial TPP negotiating session held in Singapore in May 2015, the U.S. Trade Representative (USTR) and veteran negotiator, Wendy Cutler, and Oe Hiroshi, of the Japanese Gaimusho, held bilateral trade talks regarding one of the most contentious trade issues, automobiles. American negotiators wanted the Japanese to open their entire keiretsu structure, a cornerstone of the Japanese economy, to American automobiles. They wanted Japanese dealer networks such as Toyota, Nissan, Honda, Mitsubishi, and Mazda to sell American cars.[17] The successful conclusion of these bilateral talks was necessary before the other ten TPP members could complete the trade deal.[16]

See also[edit]

References[edit]

  1. ^ Snyder, Francis G. (2002). Regional and Global Regulation of International Trade. Oxford: Hart Publishing. pp. 113. ISBN 1841132187.
  2. ^ Aoki, Masahiko (1988). Information, Incentives and Bargaining in the Japanese Economy: A Microtheory of the Japanese Economy. Cambridge: Cambridge University Press. doi:10.1017/CBO9780511571701. ISBN 9780521354738.
  3. ^ a b c d Addicott, David A.C. (2017). "The Rise and Fall of the Zaibatsu: Japan's Industrial and Economic Modernization". Pepperdine University.
  4. ^ Encyclopædia Britannica. "Zaibatsu".
  5. ^ In his 1967 memoirs, George F. Kennan wrote that aside from the Marshall Plan, setting the "reverse course" in Japan was "the most significant contribution [he] was ever able to make in government." George F. Kennan, Memoirs, 1925–50 (Boston, 1967), 393.
  6. ^ Fukase, Atsuko (31 July 2015). "Mitsubishi UFJ Joins Crusade on Cross-Shareholding". Wall Street Journal. Retrieved 7 August 2015.
  7. ^ a b Benhabib, Beno (2003). Manufacturing: Design, Production, Automation, and Integration. New York: Marcel Dekker, Inc. pp. 19. ISBN 0824742737.
  8. ^ "What is Keiretsu?". Retrieved 3 February 2022.
  9. ^ Lincoln, James R.; Gerlach, Michael L. (2004). Japan's Network Economy: Structure, Persistence, and Change. Cambridge: Cambridge University Press. pp. 362. ISBN 0521453046.
  10. ^ Aras, Guler; Uddin, Shahzad (2011). Governance in the Business Environment. Bingley, UK: Emerald Group Publishing. p. 101. ISBN 9780857248770.
  11. ^ "Japan Again Plans Huge Corporations". The New York Times. Associated Press. 17 July 1954. Retrieved 4 July 2011.
  12. ^ "The Keiretsu of Japan". Archived from the original on 1 March 2021. Retrieved 24 September 2011.
  13. ^ "The Toyota Group, the One and Only Horizontal-Vertical Keiretsu". Archived from the original on 23 February 2021. Retrieved 29 February 2008.
  14. ^ See Columbia Journalism Review's "Who Owns What" Archived 23 April 2007 at the Wayback Machine website or They Rule.
  15. ^ Miwa & Ramseyer, 2001
  16. ^ a b c "Japan, U.S. Seek Trade Pact Deals on Rice, Auto Parts", Bloomberg, 19 April 2015, retrieved 8 August 2015
  17. ^ Stephen Harner (20 May 2015), "Japan Auto Imports, TPP, and the Price of American 'Leadership'", Forbes, retrieved 8 August 2015

Further reading[edit]