The Impact and Effects of Changes in China's Economy

119 TH YEAR NO. 41,672 ISSN 0289-1956 ©THE JAPAN TIMES, LTD., 2015 ‘Summer Davos’ Special Wednesday, September 9, 2015

Clockwise from top; The World Economic Forum’s Annual Meeting of the New Champions, dubbed Summer Davos, took place in Tianjin, China, in 2014. This year’s forum will take place in Dalian from Sept. 9 to 11. More than 1,500 participants from business, government, research and media from over 90 countries will gather to hold discussions on “Charting a New Course for Growth”; Dalian is a major city and seaport in the south of Liaoning Province; The venue for the forum, Dalian International Conference Center in Donggang CBD; Since 2007, Dalian has been hosting the Summer Davos in alternating years with Tianjin. ISTock, flickr/World economic forum The impact and effects of changes in China’s economy said. Additionally, the number of Chi- Kong have come to Japan, but less than Despite economic slowdown, experts predict nese tourists to Japan or the amount of 1 percent of Chinese have. As Chinese money they spend may decrease. get to know the quality of Japan, they upside for some areas of Japanese business Numbers of Chinese tourists have will visit and tell their friends about it, increased dramatically over the past he added. Minoru Matsutani it began consistently falling and has couple of years because of various fac- “Therefore, Japanese department STAFF WRITER hovered roughly between 7 and 8 per- tors such as increasing Chinese wealth, stores and the tourism industry as a cent since the middle of 2012. This year, the Tokyo Olympics in 2020, the desig- whole should continue to strengthen Since late August, China’s economy and the growth rates for the first two quar- nation of washoku Japanese food, as a hospitality geared toward Chinese,” stock prices have dominated headlines ters from January were 7 percent each. UNESCO Intangible Cultural Heritage Zhou said. worldwide. To back up Zhou’s argument that 5 or and the Japanese government’s efforts Both Seki and Zhou believe China is Chinese stocks plummeted about 6 percent growth is substantial, the esti- to promote Cool Japan. on course to become a mature econ- 30 percent over the course of a week mated growth rates for Japan, the U.S. Another risk is that investors may sell omy, amid new normal policies, and in late August, affecting bourses and the eurozone for this year are 1.1, assets in yuan and buy them in other thus what people spend money on will around the world. Investors, brokers 2.7 and 1.5 percent respectively, accord- currencies too quickly, causing the yen shift from home appliances, cars and and strategists hold a poor outlook for ing to the Global Economic Prospects to rapidly appreciate against the yuan, other hardware to entertainment and a China’s economy, something that will June 2015 Edition by the World Bank. Seki said. more comfortable standard of living. likely be a major topic of discussion To achieve new normal, China needs On China’s recent move in mid- Given such a situation, Japanese mak- during the Annual Meeting of the New to become a “normal” economy by August to reverse its currency policy ers may want to withdraw or scale down Champions, dubbed “Summer Davos,” international standards. Xi knows it from promoting a strong yuan to weak- their manufacturing operations in in Dalian. and is aggressively taking measures to ening the yuan, Seki said it is probably China, and Japanese service companies However, a plunge in stock prices and eradicate corruption and reform because China wants to dodge accusa- may have a chance to succeed if they slumping capital investment and con- national companies. tions of manipulating the currency mar- provide desired services, such as online sumption are “growing pains” for China, Such measures are partially blamed ket to keep the yuan strong. He also said shopping, Seki said. which, as Chinese President Xi Jinping for the economic downturn because China’s economy and stock prices have dominated headlines worldwide since the secondary reason is probably that Zhou said restaurants, hair salons said, is entering a state of “new normal.” eradication of corruption reduced con- August. Afp China wants to help exporters. and other life and culture-related Considering China’s huge economic sumption of luxury goods and reform- In this situation, what should Japa- industries will see increased demand in potential, Japanese companies should ing national companies increased constantly even with aggressive mone- on June 12, the index plunged about nese companies do? For example, major China, and Japanese companies have not panic and make a hasty decision of bankruptcies. tary easing as companies don’t know 42 percent. Japanese department stores, such as opportunities there. withdrawing or scaling down their Chi- Still, “this is a good thing in the long what to do with excessive amounts of Both Zhou and Seki agree that stock Mitsukoshi, Takashimaya and Isetan, Demand for extreme luxury goods nese operations, economists have said. run,” Zhou said, praising Xi. These cash except to use it to buy stock or other prices were excessively overvalued. have seen huge increases in sales from and services may not increase now The new normal is China’s economic moves work favorably to foreign compa- financial products, he added. “In my mind, exceeding 4,000 points Chinese tourists over the past year. To because they do not fit what the new state of maintaining a growth rate of nies, including Japanese ones operating “When companies with huge debts was dangerous territory,” Seki said. accommodate them, they have normal is aiming for, Seki said. around 7 percent. It is expected that in China, he added. start cleaning their balance sheets, they “Company earnings were getting worse increased their numbers of Chinese- Japanese carmakers will probably China’s economic growth will dip under Shinichi Seki, vice senior economist reduce capital spending and the econ- and stock prices kept going up only speaking employees, put up more signs succeed because Chinese demand will 7 percent this year. in the Economics Department at The omy will stagnate more and more,” he because there was nowhere else for the in Chinese and stockpiled products shift from large, expensive cars to safe, “OK, GDP growth may not be 7 per- Japan Research Institute Ltd., also mir- said, adding that this would follow the money to go.” favored by Chinese. Should they con- easy-to-drive cars, something Japanese cent this year. So what? 5 or 6 percent rors Zhou’s praise for Xi and his new same pattern as the bursting of Japan’s Chinese market overreaction spread tinue to do these things? carmakers excel at producing. would still be very substantial growth,” normal policies. He also believes China bubble in the early 1990s. to the world and Japan’s stock prices Both Seki and Zhou said yes and Zhou said manufactures still have a said Zhou Muzhi, a professor in the Fac- still has major economic growth poten- Amid these economic conditions — also plunged. The Nikkei 225 Stock Aver- agreed that Japanese companies should chance to succeed if they focus on ser- ulty of Economics at Tokyo Keizai Uni- tial, but the world’s most populous even though economists were predict- age dropped to 17,806.7 on Aug. 25, never stop taking such measures. vice. For example, Hitachi group is mak- versity. “Do Japanese companies still country has a risk of going through stag- ing the slump would be short-lived and down from 20,620.26 on Aug. 17, and The two economists said Japan is ing a great deal of money in its elevator have a chance to succeed in China? Yes. nation in the short term. necessary for future reform — it is fair to had hovered in the range between still a minor destination for Chinese business, and Chinese people choose Do more and more Chinese come to The biggest problem is an excessive say investors overreacted. 17,600 and 19,200 until Sept. 4. tourists and overseas travel itself is a Hitachi instead of domestic makers Japan for binge shopping? Maybe not in amount of debt in local governments The Shanghai Composite Index, the The negative impact on the Japanese minor entertainment option for them. because Hitachi has better maintenance the short term, but they definitely will in and companies, Seki said. benchmark index for Chinese stocks, economy may be short lived, but it will As they become wealthier, overseas services, he said. the long term.” “China is now in a situation similar to floated around 4,000 points in mid- definitely be felt. travel will become more and more “Not every manufacturer will slump China’s growth rate peaked at over 12 Japan’s right before the burst of bubble August and fell to around 2,927.29 on Japanese makers of factory equip- popular, they said. in China. Japanese companies must percent on a quarterly basis in 2010 fol- economy (in the early ’90s),” he said. Aug. 26. It had hovered around 3,000 ment and electrical components may Zhou pointed out that more than 10 become smarter as Chinese consumers lowing the global recession in 2009. But Capital investment has been declining until Sept. 4. From a peak at 5,166.35 experience sales drops in China, Seki percent of people in Taiwan and Hong will become smarter,” Zhou said.

PAGE: 1 B2 The Japan Times Wednesday, September 9, 2015 ‘Summer Davos’ special Will AI become a threat to future white-collar workers?

Sayuri Daimon nies hope to take away technology that STAFF WRITER can help improve voice-agent apps, such as Shabette Concier or Siri, which Can a robot get into the University of answer verbal questions using informa- Tokyo, Japan’s most prestigious univer- tion culled from various sources, sity, by 2021? including Wikipedia. Some people may say “yes,” thinking According to Arai, a fill-in-the-blank that since robots can now beat profes- question on an English test can be useful sional chess players and shogi (Japanese for such research. chess) players, it shouldn’t be so difficult For example, if a person in a conversa- to realize this in the not-so-distant tion says, “It’s unbelievable that we grad- future. But it is not that simple. uated from school 10 years ago,” what To answer this question, the Tokyo- should the proper reply be? The right based National Institute of Informatics answer may be: “True. I feel like it was (NII), Japan’s only general academic just yesterday,” but it is often difficult for research institute for informatics, AI to fill in the blank with such a sophis- launched a 10-year project in 2011. Col- ticated answer. laborating with various companies and After taking mock exams in 2013 and institutions, the project aims to attain a 2014, the AI achieved a score on par high score on the National Center Test for with the average Japanese high school University Admissions, a standardized, graduate. The results mean that AI multiple-choice test taken by more than would have about an 80 percent chance half a million high school graduates of getting into about 80 percent of every year, by 2016, and achieve the level Japan’s private universities. to enter the University of Tokyo in 2021. Professor Noriko Arai SATOko kawasaki Arai is confident AI can reach a higher But its ultimate goal is not simply cre- score, perhaps eventually outperforming ating an artificial intelligence (AI) to “To develop AI with interdisciplinary more than two-thirds of students who answer questions on university entrance knowledge that can answer various take the test, but admitted attaining a exams. It is to raise the accuracy of AI questions, we should have a common score good enough to be accepted by the techniques that have been accumulated benchmark that can measure the ability University of Tokyo would be difficult. to date and to deepen the understand- of AI,” she said. “By having AI solve uni- Similar projects to use university ing of what it means to be human, versity exam questions, which require entrance exams as a benchmark are also according to Noriko Arai, director of the different tasks, we will be able to know underway outside Japan. project at NII. clearly how much their ability has devel- In the U.S., the Allen Institute for Arti- “Back in 2010, I wrote the book ‘How oped so far.” ficial Intelligence also started Project Above; AI can already beat humans at chess. A day may arrive when AI can pass the computers can take our jobs’ and pre- The business sector is actively involved Aristo, which has a system that acquires University of Tokyo entrance exam. Right; Students walk toward the entrance of the dicted that 50 percent of white-collar in this project. and stores vast amounts of knowledge in University of Tokyo. ISTOck, Kyodo jobs will be lost due to computers in 30 Companies in the education industry data form, then applies this knowledge years. But not many Japanese at the time such as textbook publisher Tokyo to answer a variety of science questions exist in the market, bankers must judge In the future, Arai predicts workers will took my prediction seriously enough,” Shoseki Co., Benesse Corp. and cram from standardized exams. how valuable it is and how society will be divided roughly into two categories Arai said in a recent interview with The school operator Sapix Yozemi Group This year, according to Arai, the Chi- accept it and whether it will make based on what they do. The first one will Japan Times. “Since university entrance participate in the project as data suppli- nese government also launched a similar money. Big data can’t provide the be low-income earners who assist and fix exams serve as a kind of gateway to ers. Software firm Cybernet Systems Co., two-year project jointly with iFlyTek Co., answers to such questions, and such operations done by not-yet-perfect AI, becoming a white-collar worker, I and various research institutes like a company that specializes in voice-rec- decisions will remain in the hands of while the second group will be high- thought people would pay more atten- Fujitsu Laboratories and NTT Commu- ognition systems. people,” she said. income earners who make the important tion if AI outperforms real students on nications Science Laboratories, are also Thanks to these research projects, AI Likewise, the job of pharmacists can decisions that computers cannot make. the tests.” involved with the project. may outperform humans in many areas be partly done by AI, but people are “Those who work above AI and make Japan has led the world in the area of Arai said as the national standardized in the near future. But it does not neces- needed for those aspects requiring high high-level decisions will be the future robot technology with Honda Motor Co.’s tests cover eight subjects — two social sarily mean white-collar workers have a levels of knowledge and judgement. white-collar workers, but they need ASIMO, a humanoid robot that can walk studies, two sciences, Japanese, English dim future with no hope to remain in the Arai warns that world leaders must extremely high-levels of education. and dance and Softbank Corp.’s Pepper, and two mathematics, each subject pro- market. foresee such a future society and form They have to acquire abilities to make which communicates with people by vides those companies opportunities to Arai cited bank loans as an example. A national strategies accordingly. difficult judgments and possess excel- analyzing facial expressions and voice explore technologies that can provide decision to provide an auto or housing “I think global leaders such as those lent communication skills,” she said, patterns, to name a couple. ideas for future businesses and products. loan to a consumer does not require dif- who gather at Davos or OECD meetings adding that the current Japanese educa- But Arai, a professor of mathematics, For example, education firms like Ben- ficult judgment and can be processed by should draw up a future scenario for tion system that emphasizes memoriza- said it is wrong to think these robots can esse and cram schools may be able to computers using big data, but providing their countries and for the world and dis- tion must change. act independently as ASIMO’s dancing speed up the process of grading their loans to venture firms is a different story, cuss what needs to be done to minimize “We must find out what skills can out- ability and Pepper’s communication tests if the process can be automated and she said. damage to society, to raise productivity pace AI and seriously discuss how we skills have been programed in advance screened by AI. “If a small venture company has devel- and to redistribute benefits gained from can acquire such skills before it’s too to respond to different situations. Meanwhile, mobile phone compa- oped an innovative product that does not increased productivity,” she said. late,” she said. YGL works to create a more resilient society

Mami Maruko through the DBJ’s ranking of companies STAFF WRITER according to how resilient they are to natu- ral and other disasters, and the companies Yoshiki Hiruma, one of the young global that are ranked as being highly resilient are leaders of the World Economic Forum’s financed through the bank’s program. Annual Meeting of the New Champions, “Resilience has been a key word and wants to make the world a better place by global agenda in society for a few years helping the homeless achieve emotional now. We are living with risks, and crisis is and financial independence through play- the new norm. A resilient society needs ing soccer. resilient companies. If risks are managed As a volunteer director of the homeless well, business can go on, but if badly man- soccer team “Nobushi Japan,” which com- aged, the investment will become a loss,” peted in the 2011 Homeless World Cup in he said. Paris, Hiruma, 31, says that his interest in Hiruma says that if a company or a homeless soccer started from an experi- nation faces some kind of risk such as a ence of helping a homeless person sell The major earthquake, losses cannot be Big Issue magazine on the street as part of ignored, but what is important is how it the volunteer educational program of his BCM Rating Director at the Development responds to the situation and recovers. banking job. The Big Issue is a publisher Bank of Japan Inc. Yoshiki Hiruma “Collective strength is needed at such a that hires homeless people to sell its maga- YOSHIaki miura time. One needs to build up a new position zines on the street. through reconstruction and innovation. He said that his sense of value fell apart the WEF’s Annual Meeting of the New This is what we call resilience and strength when a homeless person outsold him over Champions, dubbed Summer Davos, for to build back,” he said. a period of three hours, with the homeless two reasons. First was his involvement He is surely using this skill to lead the person selling 20 copies and Hiruma mov- with the soccer team, and second, in rec- homeless soccer team. He says that many ing only three. ognition of the development, along with of the soccer team members have regained “I was surprised that I was thoroughly fellow bankers, of an enterprise resilience their self-confidence and independence beaten by that homeless person in maga- rated loan program based on business through playing soccer, and some have zine sales. It was one of the most powerful continuity management rating (BCM rat- started working again. experiences in my life, and felt like getting ing) at the bank. He has also helped the soccer team hit in the head with a hammer,” he said. This is the first program of its kind, and grow, and the team now counts not only At the end of the three hours, the home- he says investors around the world have homeless people as members, but also less person asked him to play soccer with been interested in the program since people with disabilities or dementia. him on the weekend, which later led him 2012. Around the same time, Hiruma “It’s so diverse. It doesn’t matter to becoming director of the team. became a member of World Economic whether the person is homeless or not, nor As a banker working for the Develop- Forum’s risk response network and does it matter whether the person has dis- ment Bank of Japan Inc. in Chiyoda national resilience research team. abilities or not. People just get together as Ward, Tokyo, Hiruma received the Young The introduction of financial initiatives a team to genuinely enjoy playing soccer. Global Leader 2015 Award given out by for building a resilient society was done That’s all that matters,” Hiruma said. Young Global Leaders are the vanguard in business, politics and society In March, the World Economic Forum world’s future leadership is becoming cluding reinsurance, lending, leasing announced this year’s Forum of Young broader in terms of both gender and and private equity. Global Leaders (YGLs), the most excep- geography. Alongside 44 selected from tional leaders 40 years of age and North America and 39 from Europe, the Yoshiki Hiruma younger, who are believed to be the ar- class of 2015 includes 23 YGLs from As a director of business continuity chitects of future society. East Asia, 19 from South Asia, 17 from management (BCM) rating at the Devel- The Forum of Young Global Leaders Greater China, 17 from sub-Saharan Af- opment Bank of Japan Inc., Hiruma has was created in 2004. YGLs are young rica, 15 from the Middle East and North developed an enterprise-resilience-rat- leaders who are radically changing Africa and 13 from Latin America. ed loan program, which was highly re- their industries, politics and society. Current and former YGLs head gov- garded at the WEF in 2012. Hiruma is Entrepreneurial and optimistic, they ernments and Fortune 500 companies, also the director of the homeless soc- represent the next generation of global win Nobel Prizes and Academy Awards cer team Nobushi Japan. leadership. and become U.N. goodwill ambassa- This year’s class of 187 YGLs is split dors and social entrepreneurs. This Naomi Koshi evenly between business and nonprofit year, among the 23 YGLs chosen from Upon election in 2012 as mayor of sectors, the latter including science East Asia, three are based in Japan: the city of Otsu, Shiga Prefecture, and technology, arts and culture, civil Koshi became the youngest Japanese society, policy and government and Steve Kumar Arora woman ever to be elected mayor at the media and social entrepreneurs. Arora, who has a diverse track re- age of 36. She has focused on issues Women are strongly represented in cord, is currently president of Swiss related to gender equality and child- this year’s class and with half the intake Reinsurance Company, Japan. He has care. Prior to entering politics, she coming from emerging economies, the worked in various areas of finance, in- practiced law in Tokyo and New York.

PAGE: 2 THE JAPAN TIMES WEDNESDAY, SEPTEMBER 9, 2015 B3 ‘Summer Davos’ special Leading English MBA program Comfortable, accessible city set to become available online

Atsushi Kodera serves as ‘gateway to Asia’ STAFF WRITER Featuring its unique ambition-inspiring Minoru Matsutani kokorozashi, or personal mission, educa- STAFF WRITER tion and hands-on business education close to real-life experience, Globis Uni- e city of Fukuoka, which the national versity’s Master of Business Administra- government designates as a National tion program has rapidly grown into the Strategic Special Zone to attract global largest and one of the highest-ranked startups, is the perfect location for test MBA programs in Japan. Now the institu- marketing in Japan. tion is set to take the English version of “Business costs are low. An airport, Fukuoka Mayor Soichiro the program to a wider audience by major train stations and a seaport, every- Takashima YOSHIAKI MIURA bringing it online. thing is within a 2.5-km radius. is level “ e course is for people living in of convenience is very rare in the world,” MICE facilities, hotels and other enter- emerging countries who want to attend Fukuoka Mayor Soichiro Takashima, who tainment facilities in the waterfront area our MBA program in Tokyo, but can’t will attend the mayor’s sessions of the where there is already a great deal of a ord to do so,” said Tomoya Naka- Annual Meeting of the New Champions, MICE infrastructure in place. mura, dean of MBA programs. “It’s also dubbed “Summer Davos,” in Dalian, Also, the city is promoting so-called targeted at people who want to study China told e Japan Times in Tokyo on Tenjin Big Bang project to turn the Tenjin for their MBA in English, but live out- Aug. 24. district, the commercial center of the city, side of Tokyo, or have to look after their With the global startup designation, into a more attractive business district. children or parents and  nd it di cult Tomoya Nakamura, dean of GLOBIS’ Fukuoka will be allowed to ease condi- As the designation of a National Strategic to attend.” MBA program YOSHIAKI MIURA tions to issue visas related to foreign Special Zone lets the city deregulate the e online English MBA will start in startups, Takashima said, adding that he aviation law to allow taller buildings, the January. It will start as an single-unit business, notable among them being is in negotiation with the state to reduce city will also take measures to relax the program with the “Essentials of Mar- the annual venture plan competition. corporate tax to Singapore’s level of 17 regulation on the limit of  oor area ratio. keting and Strategy” class, followed by “In this competition, graduate stu- percent. As such, the city aims for reconstruction “Critical inking” and “Organizational dents as well as our alumni are invited e city’s designation as a special zone of 30 buildings in the next decade, whose Behavior and Leadership” to start in to submit business plans. And we shows the national government has rec- Fukuoka is a compact city with urban functions in the center and rich natural construction-investment e ect will be April. ereafter, further classes will be invest up to ¥5 million for viable ognized potential of Fukuoka as a global surroundings. FUKUOKA CITY ¥290 billion. After the completion of the added with an eye toward introducing plans,” Nakamura said. “So we kind of city. reconstruction, economic e ect is a full online MBA program in 2017. also have what you may call an infra- Demographic conditions make 20 cities. Tax revenue increased 1.3 per- in the Nankai Trough, whose epicenters expected to reach ¥850 billion a year. In their annual promotional tours to structure, or ecosystem, as part of our Fukuoka unique as the city’s population cent to ¥276.1 billion in  scal 2013 from would be a few hundred kilometers o Fukuoka airport is connected with 21 other Asian countries, Nakamura, along programs for students to bring busi- is expanding more and is younger than 2010, the highest percentage increase of the Paci c coast of the Kyushu, Shikoku, cities in the world, including Shanghai, with Globis University president Yoshito ness ideas to reality.” other major cities in Japan. e city of the 20 major cities. Kansai, Tokai and Kanto regions. Dalian, Seoul, Beijing, Taipei, Hong Hori, has discovered there is signi cant e school’s tie-ups with major Jap- 1.53 million adds about 10,000 people a Fukuoka also boasts multilingual avail- Japan’s major cities, such as Tokyo, Kong, Singapore and Amsterdam, via 540 interest in their programs, but that many anese corporations such as Nissan year, the most growth in the so-called 20 ability. For example, Fukuoka Asian Yokohama, Nagoya and Osaka are mostly  ights a week. e airport also accom- potential students cited the cost of living Motor Co. and IBM Japan Ltd. also pro- ordinance-designated cities, which are Medical Support Center supports non- on the Paci c coast and damage from the modates 382 domestic  ights per day. in Tokyo as a major obstacle. vide opportunities to participate in major cities with populations exceeding Japanese patients by providing interpre- two quakes and tsunami would be enor- e number of passengers using the “We think the English online pro- internship programs at such compa- 500,000, excluding Tokyo. tation services on the phone and other mous. airport hit 19.29 million in  scal 2013, gram will prove tremendously attrac- nies, helping students secure jobs. According to the census, Fukuoka language supports, Takashima said. e Meanwhile, Fukuoka is far from the making it Japan’s third-busiest airport tive to such people,” Nakamura said, While online programs provide the added 65,968 people from 2010 to 2015, city also has an international school and boundaries of tectonic plates and lies on after Haneda and Narita airports. citing those in countries such as Viet- opportunity for students with diffi- an increase of 4.5 percent, compared schools with International Baccalaureate the Sea of Japan coast. Having a busy seaport is also essential nam and ailand. culty to regularly attend a full-time with the average of 0.8 percent for the 20 recognition. Multilingual signs are every- Takashima is also the top promoter of to vitalize a city. A key feature of Globis’ programs is program, they are conducted through major cities, which include Osaka, Yoko- where, and thus the city o ers a comfort- MICE (meetings, incentives, conferences Oceangoing cruise ships made 99 port their emphasis on what the school computers over the Internet, separat- hama and Nagoya. e ratio of people able environment for foreigners, he said. and exhibitions) in the city. calls at Hakata port in 2014, making it the calls kokorozashi education in which ing students and lecturers. But Naka- aged 15 to 29 is 19.2 percent in Fukuoka, Proximity to Asia is another advantage Fukuoka has been Japan’s No. 2 venue busiest port in Japan. e economic students are encouraged to develop a mura sees no major disadvantages in the highest of the 20 cities. as Fukuoka, the largest city in Kyushu, is in the number of MICE events after e ect of the port accounts for 30 percent sense of mission and ambition to bring Globis’ online MBA, which it already Fukuoka’s population is expected to Japan’s gateway to Asia. Within a 1,000- Tokyo for  ve years in a row to 2013, of Fukuoka’s gross product, Takashima conducts in Japanese. keep increasing for the next 20 years, km radius are Dalian, Shanghai, Seoul according to the Japan National Tourism said. e secret is its adoption of the so- Takashima said. Comparatively, Tokyo’s and Tokyo. Beijing and Taipei are inside Organization, which does not have statis- e city regards the port as the hub of ‘We think the called small private online course sys- population is believed to peak in 2020. 1,500 km and Hong Kong lies within tics for 2014 yet. its economy and has made e orts to tem, and he claims Globis’ online class “Fukuoka is economically very active 2,000 km, meaning Fukuoka has access For example, the city will host the 99th enhance logistics e ciency through English online environment is nearly identical to an and seeks manpower all the time. Also, to a population of 1 billion within a Lions Clubs Annual International Con- information and communication tech- actual classroom. the living environment is very friendly. 2,000-km radius. vention, which will attract about 35,000 nology. As a result, it developed a system program will be “Let’s say I’m teaching a class of 25 at’s why the population keeps rising,” Takashima also pointed out Fukuoka’s people from 205 countries, bringing the to shorten the waiting time for trucks to students online. On the screen, all stu- Takashima said, adding that British mag- bene t in business continuity planning. economic e ects of ¥5.2 billion. It will load containers to as little as 15 minutes. tremendously dents are visible to me, just like in an azine Monocle ranked Fukuoka the As a big city with a low risk of earth- also be one of twelve cities in Japan to For example, the system detects when actual classroom. at’s because twelfth livable city in the world and sec- quakes and tsunami, it has a rare combi- host the Rugby World Cup in 2019. a truck enters the port to pick up con- attractive.’ everybody’s face is on screen. If Jane ond in Asia. nation of bene ts in Japan. He argues Amid these measures, the number of tainers and ensures no other containers TOMOYA NAKAMURA wants to speak, she would raise her e demographic advantage re ects that having secondary headquarters in tourists to Fukuoka exceeded 17 million are stacked on top of those the truck is hand, and I would instantly recognize economic growth. e real growth rate Fukuoka is a good backup plan in case of for two consecutive years in 2012 and going to pick up, shortening loading positive changes to society. It is the it and point at her ... and her face was 2.3 percent in  scal 2012, compared natural disasters and other unexpected 2013, reaching a record 17.82 million in time. founder’s belief that such a sense is an would be zoomed in on while she with the country’s 0.7 percent. e aver- incidents. 2013. “Logistics have become very smooth essential element in a leader. speaks through the microphone.” age annual growth rate from 2009 to 2012 Japan’s biggest disaster risks are the “ anks to the airport and seaport and Hakata port is easy to use,” said Ken- Students are required, for example, “ ere is a possibility that classes was 2.7 percent, the second highest of the Tokai earthquake or a major earthquake being so close to the city, Fukuoka is a taro Kishino, manager, Sales Section IV, to write an essay on their kokorozashi may even work better online than in very popular venue for international con- Sales Department II, Bridgestone Logis- in a compulsory entrepreneurial lead- real classrooms,” he added. ferences. We had to turn down 52 MICE tics Co. e tire maker’s logistics arm ership class taught by Hori and Naka- Yoshito Hori, a regular participant of events three years ago due to a lack of accounts for more than 20 percent of mura, developing it until the  nal the famous World Economic Forum capacity,” he said. exports from Hakata port. “We spent a lot session where they are required to (WEF) in Davos, Switzerland, started “Hotel occupancy rates are very high of money on logistics and any reduction make a presentation. Globis University in 1992 with only a now and it’s di cult to book hotel in those costs is a major bene t.” “For example, a ai student may marketing class in a small rented o ce rooms,” he added. anks to such improvements, sales of say, ‘I want to become a bridge in Tokyo. As of 2013, it had 7,000 stu- Of course, Takashima reacted to the Hakatakoun Co., a logistics company at between ailand and Japan and I dents (including those in non-degree shortage quickly, launching a project, Hakata port, jumped 20 percent in the especially want to help grow the auto programs) at  ve campuses. In 2014, dubbed “Water Front Next,” to develop past  ve years, said Ryota Yanase, general parts industry in my country with Japa- the Japanese MBA program had 629 manager, Business Development Divi- nese technology.’ We want students to students, representing Japan’s largest sion, Hakatakoun Co. express their missions like that and this accredited MBA program. With the vitality of a young population, type of education is a major aspect of During the upcoming WEF Annual proximity to Asia, low disaster risks, busy our programs,” he said. Meeting of the New Champions 2015 in ports and state designation as a National “We started an English MBA nights Dalian, China, from Sept. 9, Globis, Strategic Special Zone, Fukuoka is certain and weekend program in 2009, and along with other Japanese companies, to grow to be a leading city in Japan, since then, many non-Japanese stu- will host Japan Night, a social opportu- Takashima stressed. dents have shown interest in the nity for participants to enjoy dinner “If you want to take on new challenges kokorozashi aspect of our education,” and socializing. in Japan, you should look at Fukuoka. added Nakamura, a Harvard MBA “ e World Economic Forum is a We have every intention of becoming a graduate and business management place where issues that cannot be global gateway,” Takashima said. professional. solved by individual countries are dis- Globis University also has courses to cussed by the world’s leading minds For more information on Fukuoka city, see help students make their missions real- and we are grateful to be involved in Hakata port is the logistics hub of the http://facts.city.fukuoka.lg.jp/en. ity. Many classes are geared toward hosting Japan Night at such an auspi- Waterfront convention center district FUKUOKA CITY city. FUKUOKA CITY equipping them with the skills to start a cious forum,” Nakamura said.

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PAGE: 3 B4 The Japan Times Wednesday, September 9, 2015 ‘Summer Davos’ special ‘B-class’ cuisine: Food that reflects the soul of the people

Makiko Itoh rebelled against this though, arguing As the sluggish economy dragged SPECIAL TO THE JAPAN TIMES there was plenty of good food to be had on, the popularity of B-kyu gurume that didn’t cost the earth. continued to grow. A popular TV show From the impressive number of stars But B-kyu gurume didn’t really take of the 1990s was Iron Chef, which was garnered by restaurants in Tokyo to off until the 1990s, after the bubble later featured on American television. heads of state visiting the establish- economy burst and a mood of austerity The program featured chefs from top- ments of famed sushi masters, the high swept away the party mood of the end restaurants as contestants battling end of the Japanese culinary scene gets 1980s. Magazines and newspapers that the Iron Chef regulars, often using plenty of attention worldwide. But eat- had previously featured articles about expensive ingredients such as foie gras ing out in Japan doesn’t mean you have expensive restaurants devoted their and caviar in abundance in an over- to break the bank all the time, and pages to mom-and-pop restaurants the-top arena labeled Kitchen Sta- sticking to a budget doesn’t entail only that served filling, homey food. dium. This was haute cuisine as going to fast-food restaurants. Enter A dish that typified B-kyu gurume fantasy; for most people, the days of B-kyu gurume (B-class gourmet cui- early on was motsunabe, a hotpot made enjoying lavish meals were long over. sine) hearty, reasonably priced and with cow or pig offal, using leeks, garlic, In the meantime, the rest of the TV down-to-earth dishes, often with strong chili peppers and other seasoning to schedule was filled with stories about regional associations. offset the gaminess. A popular local no-frills mom and pop eateries that Hearty, homey cuisine beloved by dish in and around the cities of were beloved by local residents. ordinary folk has been around for a Fukuoka (especially in Hakata Ward) Certain types of food came to define long time of course, but the actual term and Shimonoseki in southern Japan, it B-kyu gurume. One was ramen, the B-kyu gurume was first coined in the uses inexpensive ingredients cooked hearty bowl of hot soup and noodles mid-1980s. It’s important to note that with care and served in hearty portions that has its roots in the noodle soups although “gurume” is the Japanese ver- both defining features of B-kyu brought over by Chinese immigrants in sion of “gourmet,” it doesn’t mean a gurume. Before the early ‘90s, motsu- the late 19th to early 20th centuries. Up person who enjoys food; it refers to a nabe was virtually unknown outside of until the 1970s or so, ramen was known type of cuisine. The Japanese economy its local region, but in the post-bubble for being cheap and filling tasty, but was booming and dining out at restau- economy period several restaurants not much more. rants that used expensive ingredients serving Hakata-style motsunabe Ramen was usually classified into and charged high prices was very much popped up in Tokyo. It was quickly three types, depending on the type of the “in” thing to do. championed as a dish that defined the sauce added to the soup: miso, soy The trendy set considered spending zeitgeist, and “motsunabe” was even sauce or salt the last meaning it had no less than ¥10,000 per person at a res- selected as one of top three new and sauce added, just seasoning. But in the taurant rather declasse. Some people trendy words of 1992. ’80s and ’90s, the humble bowl of soup and noodles was given a whole new level of respect and attention. Regional variations in ramen became important, even worth traveling to the region in question to partake in the “real thing.” Clockwise from above; Takoyaki, which For instance tonkotsu ramen, which originated in Osaka, is typical gotochi uses a thick, almost creamy broth made B-kyu gurume; Shirasu can only be caught with pork bones (tonkotsu) and other around ports such as Enoshima in ingredients, was virtually unknown out- Kanagawa Pref.; Yakisoba from Yokote, side of Fukuoka, Kumamoto and other Akita Pref., is sometimes sold as ekiben cities on the southern island of Kyushu. (station lunch boxes); Kakinohazushi is After being “discovered” by Tokyo- topped with cured mackerel and wrapped based food critics and others, it became in a persimmon leaf. Makiko itoh wildly popular nationally. Comparing the merits of regional varieties such as regional) B-kyu gurume using inexpen- miso ramen from Sapporo; milky white sive local dishes to lure visitors. chicken soup ramen from Kyoto; hearty One of the most notable examples of soy sauce-based ramen from Yokohama gotochi B-kyu gurume is Fujinomiya and more became important talking yakisoba, pan-fried noodles from Fuji- points for enthusiasts. “Gourmet” nomiya, a small city in Shizuoka Prefec- ramen continues to be very popular all ture. Locals had been making a version over Japan, and is making inroads inter- of yakisoba (which is a variation of the nationally, too. lo mein brought in by Chinese immi- In the late ’90s, the concept of B-kyu grants) using thick, chewy steamed noo- gurume got a new twist, inspired at least dles, tenkasu (deep fried batter bits that Okonomiyaki is a popular dish from Osaka, a city known for its hearty, down to earth in part by the popularity of regional are left after making tempura), topped cuisine. MAkiko itoh ramen, in the form of gotochi (local, or with katsuobushi (bonito flakes) and dried mackerel or herring powder. In the late 1990s, a group of local res- idents decided to try to use this yakisoba to attract visitors and boost the local economy. They gave it a proper name and promoted it heavily, with great success. Fujinomiya yakisoba won the top prize at the inau- gural B-1 Grand Prix, a contest set up to help promote gotochi B-kyu gurume, and other regional towns scrambled to follow their example. Authenticity is just as important for advocates of goto- chi B-kyu gurume dishes as it is for those involved in high-end traditional cuisine; the Fujinomiya Yakisoba Soci- ety lists 12 requirements for “real” Fuji- nomiya yakisoba, including the use of spring water from Mount Fuji. In recent years, there’s been a small backlash against the concept of gotochi B-kyu gurume. The main objection by detractors is that contests such as the B-1 Grand Prix encouraged regional organi- zations to invent new dishes and label them as “local,” even though the original nomiya period, as have similar variations great place to sample B-kyu gurume concept was to highlight and promote on the ever-popular curry with rice. from all regions, especially if you don’t dishes that were already well established. Some local dishes only qualify as B-kyu have the time to travel. The B-1 Grand Prix organization itself inexpensive and abundant dishes in their The best places to find hearty, reason- distances itself from the “B-kyu” aspect regions because the ingredients don’t ably priced B-kyu gurume is in small these days, saying they promote regional travel well, such as the raw shirasu izakaya (pubs) and restaurants, many of cuisine of any kind, and locals in some (whitebait) from Enoshima in Kanagawa which are to be found down little alley- regions insist that their much beloved Prefecture and Awajishima in Hyogo Pre- ways that hide in the shadows of high regional dishes are not “B-kyu.” fecture. Even something as mundane as a rise buildings a world apart from the For visitors, though, the prevalence hamburger becomes special and afford- image of Tokyo as a cool, modern of gotochi B-kyu gurume is great news, able, too when it’s made with locally pro- metropolis. The easiest way to find the since it makes it possible to sample duced beef, such as that from Matsuzaka, best ones? Just look for the places with regional specialities easily. Besides Hyogo Prefecture, famed for its epony- lines stretching outside. ramen, you may already know fare mous wagyu beef. These days, expensive restaurants are such as okonomiyaki (savory pan- Tokyo itself has its own gotochi B-kyu as popular as they were in the go-go ’80s, cakes), takoyaki (octopus balls) and gurume fare such as monjayaki, a savory but B-kyu gurume is just as popular, too. kushikatsu (grilled meat on skewers) pancake that’s akin to okonomiyaki but While kaiseki (traditional multicourse from Osaka, a city known for its hearty, looser and flatter, and Fukagawa meshi, meal) and other high-end cuisine repre- down to earth cuisine. freshwater clams and miso broth served sent the refined pinnacle of cooking in Regional varieties of yakisoba have over rice that’s been popular since Japan, B-kyu gurume is a reflection of the grown in popularity in the post-Fuji- Tokyo was called Edo. But it’s also a soul of its people.

Hakata-style motsunabe (left) and tonkotsu ramen are some of Fukuoka’s B-kyu gurume favorites. fukuoka city

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