economy - Japan's trade ministry warns for China risks

In a white paper the Japanese ministry of Economy, Trade and Industry warns Japanese companies of the increased risks of relying too much on its biggest trade partner China, writes the FT.

The white paper warned of China's "underdeveloped, opaque legal system", the poor enforcement of intellectual property rights, shortage of qualified local managerial staff and power outages.

The ministry asks companies to divide risks more between other Asian countries, including India.

It said there is no big difference between China and Asean countries with regard to production costs, and pointed out labour costs in hiring Chinese middle management are relatively high due to their scarcity.