SHOSHA Handbook

Introduction
The Shosha have always reorganized and expanded their roles and the services they offer, to adapt
with the change of the times. For this reason, it may be difficult for people in general to understandexactly what the Shosha do. This is even more true for people from other countries where companies
similar to Japan's Shosha do not exist.
Even people who have worked at Shosha for many years likely have problems explaining them toothers in a succinct, easily understandable manner.
The purpose of this Handbook is to help as many people as possible to understand the activities inwhich the Shosha are involved.
The theme of this edition is Towards Sustainability and Prosperity. Chapter 1 explains the essenceof the Shosha and their strengths, and summarizes the value chain and how their recent businessmodel is based on two cornerstones -- trading and business investments.
Chapter 2 provides six perspectives on the role the Shosha play in the global economy and how
they are working to solve global social issues.
It also summarizes the activities in which the Shosha are engaged in the area of social
contributions.
Finally, Chapter 3 introduces the activities of Japan Foreign Trade Council (JFTC) and includes a listof JFTC regular members and a chronological table.
We hope this Handbook will provide everyone interested in the Shosha with a better understandingof their past, present, and future activities, businesses, and operations.
September 2022
*This is the English-language version of "SHOSHA Handbook 2022", published in September 2022.
02

SHOSHA Handbook 2022

Contents
Introduction………………………………………………………………………………………………………… 02
Chapter 1: What Are the Shosha?
1. The Strengths of the Shosha		What Are the Shosha?…………………………………………………………………………………
（1）		
Extensive Range of Assorted Products and Business Sectors…………………………
（2）
		
Global Networks…………………………………………………………………………………………
（3）		
Using a Variety of Functions to Create Businesses…………………………………………
（4）
		
The Continuously Evolving Functions and Roles of the Shosha………………………
（5）
		
The Shosha Functions to Make Proposals to Meet Wide-ranging Needs…………
（6）
Column ❶ How the Shosha Overcame a Variety of Crises…………………………………………
		
Column ❷ The History of the Shosha……………………………………………………………………
		
Column ❸ Catchphrases That Summarize the Shosha's Activities……………………………
		

04
05
06
08
09
10
11
12
13

2. The Shosha's Business Model		
Trade and Business Investment Are the Two Cornerstones………………………………
（1）
		
The Features of the Shosha's Business Investments………………………………………
（2）
		
The Shosha's Value Chain Strategy………………………………………………………………
（3）
Column ❹ The Challenges Facing the Shosha…………………………………………………………
		

14
15
16
17

Chapter 2: The Shosha Are Active Worldwide
1. Working to Resolve Global Social Problem
		SDGs and the Shosha………………………………………………………………………………… 18
（1）
		
The
（2） Shosha's Sustainability ………………………………………………………………………… 19

2. Shosha Initiatives
		Conservation of Global Environment（1）
		 ▶Renewable energy business………………………………………………………………………
		 ▶Circular economy business…………………………………………………………………………
Column ❺ Biodiversity Conservation………………………………………………………………………
				
Responsible for Stable Supply（2）		 ▶Food business…………………………………………………………………………………………
		 ▶Energy buisiness………………………………………………………………………………………
		 ▶Mineral resource business…………………………………………………………………………
		
Supporting Global Business（3）		 ▶Logistics service business…………………………………………………………………………
Column ❻ Respecting Human Rights in Supply Chains……………………………………………
				 ▶Overseas industrial parks business……………………………………………………………
		
Supporting More Comfortable Lifestyles（4）		 ▶Infrastructure business………………………………………………………………………………
		 ▶Consumer goods industries………………………………………………………………………
		 ▶Healthcare business…………………………………………………………………………………
		
Create New Value（5）▶Digital and next generation technology business……………………………………………
		
Enriching People and Society（6）		 ▶Promote diversity and flexible work style……………………………………………………
		 ▶Shosha's CSR Activities……………………………………………………………………………

20
22
23
24
26
28
30
31
32
34
36
38
40
42
43

Chapter 3: What JFTC Does
1. Japan Foreign Trade Council, Inc. (JFTC)… ………………………………………………… 44
Column ❼ Shosha's Corporate Codes of Conduct and Vision…………………………………… 46
		
2. JFTC Kids☆Site…………………………………………………………………………………………… 48

3. Action for a Better International Community (ABIC)…………………………………… 49

Appendix ❶Regular Members of JFTC… …………………………………………………… 50❷The World Economy and Trade… …………………………………………… 52
SHOSHA Handbook 2022

03

1-1

What Are the Shosha?

Known as a uniquely Japanese business model*, the Shosha have been responsible for overseas transactions
since Japan opened up to the outside world around the time of the Meiji Restoration. As Japan recovered as a
trading nation after WWII, they grew significantly as they took charge of imports and exports, proactively expanded
overseas, and expanded their global networks. They have leveraged these networks in recent years, making
investments and developing various businesses on the world stage.
* Comment by Professor YASUDA Ryuji, Graduate School of International Corporate Strategy, Hitotsubashi University, during the symposium on The
Front Line of the Shosha Business sponsored by JFTC.

The main features of the activities of the Shosha today are as follows.
①The Shosha handle products in a wide range of business sectors that are said to cover everything "from mineralwater to communications satellites (see P.13 Column③)". Their business domains extend from upstream todownstream sectors, from the development and procurement of raw materials, to manufacturing and processing,

Chapter 1

logistics, sales and services. They contribute at each stage by enhancing value-added (see P.5 Chapter 1.1-2).
②The Shosha operate worldwide, making business investments on a global scale. By building numerous value
chains (see P.16 Chapter 1.2-3), they contribute to creating richer lives for people through satisfying their varied

What Are the Shosha? The Strengths of the Shosha

needs in countries and regions around the world (see P.6-7 Chapter 1.1-3).
③They quickly identify, and attempt to anticipate, customers' ever-diversifying needs as they change with the times,
expanding their roles and functions on their own initiative, while constantly and flexibly altering and expanding theirbusiness portfolios (see P.8 Chapter 1.1-4).
Varying in type and size of business, the Shosha include general trading companies, specialized trading companies,
sales agents and wholesalers. This Handbook deals primarily with Shosha that are members of JFTC.

GlobalNetwork

Problem-solving
Value Creation
Extensive
Rangeof Assorted
Products andBusiness
Sectors

Ahead of theTimes withvriety of
FunctionsContribution to life, socity and the global environment
04

SHOSHA Handbook 2022

1-2

Extensive Range of Assorted Products and Business Sectors

The Shosha handle a wide range of products and services, and their businesses are constantly transforming as
they adapt to changes in industry and society. Given the rise in environmental awareness and the evolution of digitaltechnology in recent years, they have been entering into new businesses such as electric vehicles (EV, PHEV and
HEV) and renewable energy sources, including hydrogen and ammonia.

Network
Machinery,Transportationequipment

Energy,Metals,ChemicalsLifeindustries◦ Construction machinery, machine
tools, agricultural machinery, mining
machinery◦ Automobiles (EV, PHEV, HEV), autoparts, railways, ships, aircraft◦ Iron ore, coal
◦ Iron & steel products, steel service
centers◦ Copper, aluminum, nickel, precious
metals, rare metals◦ Crude oil, LNG, LPG, petroleum
products, renewable energy sources(hydrogen, ammonia, etc.)◦ Petrochemicals, inorganic & finechemicals, synthetic resins,
electronics materials, fertilizers &agrochemicals, pharmaceuticals,
and biochemicals◦ Textiles (raw materials, products,
industrials materials, apparel,branded goods)◦Lumber & construction materials,
paper & pulp, chippings, leather,
ceramics, tires, rubber products,
interior goods and householdsundries, forestry◦Grains, raw sugar, marine & livestock
products, fruit & vegetables, oils &fats, beverage ingredients◦Processed foods (alcoholic
beverages, canned goods, dairy
products, etc.)◦Pharmaceuticals, drugstores,
health-related products, hospitals,
and facilities for the elderly◦Convenience stores & supermarkets◦Recycling

Media,
DigitalInfrastructure,
Real estate

Finance,
Logistics◦ Information & communications,
CATV, TV & Internet shopping◦Digital solution services◦Space business, satellite media &ridesharing◦5G, IoT, AI◦Cellular phone service◦IT, BPO services◦ Infrastructure, real estate◦ Overseas industrial parks◦ Comprehensive regional
development, urban development,
housing (development, construction,
sales & management), commercial
facilities, office buildings (facilities
management, leasing, distribution)◦ Smart city
◦ Ports, bridge, road
◦ Railway, airports◦ Electric business, Solar, wind &geothermal power generation◦ Water supply & sewerage systems◦ Telecommunications infrastructure(base stations, optical cables, data
centers, etc.)◦ Leasing (automobiles, railway rollingstock, aircraft, etc.)◦ Insurance◦ Domestic and overseas
logisticsDistribution center◦ Dealing (Precious metals etc.)◦ REIT

SHOSHA Handbook 2022

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1-3

Global Networks

As they are active on the global stage, the Shosha run various types of offices around the world,
including local subsidiaries, regional and branch offices, representative offices, and field offices.
These locations all collaborate in effectively developing each Shosha's global business.

Europe, Russia, CIS◦Prague◦Paris◦Dusseldorf◦Budapest◦Milan◦Warsaw◦Madrid◦London◦Almaty◦Moscow

Chapter 1

etc.

◦St. Petersburg◦Vladivostok◦Kiev◦Tashkentetc.

43cities in total

What Are the Shosha? The Strengths of the Shosha

Middle East

Africa◦Alger◦Casablanca◦Addis Ababa ◦Lagos◦Accra◦Johannesburg
etc.
◦Nairobi

etc.

17cities in total◦Cairo◦Teheran◦Baghdad◦Tel Aviv◦Amman◦Kuwait◦Muscat

etc.

◦Doha
◦Riyadh◦Istanbul◦Abu Dhabi◦Dubaietc.

20cities in total

Huge Industrial Grouping

In Japanand overseas Approx.

5,900 460,000
copmanies/

employees

Consolidated companies/employees of seven Shosha*(incl. employees of parent companies: 30,000)
Establishing business corporations, entering new sectors through acquisitions of existing companies* Seven Shosha: ITOCHU Corporation, Marubeni Corporation, Mitsubishi Corporation, Mitsui & Co., Ltd., Sojitz Corporation, Sumitomo Corporation,
Toyota Tsusho Corporation (The same applies hereinafter.)
Note: Derived from the seven Shosha’s Annual Securities Reports 2021.

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SHOSHA Handbook 2022

22

216

No. ofCitiesCitiesdomestic &overseasin Japanoverseas
locations (Reference: The number of Japanese Embassies, Consulates                      and Permanent Missions totaled 229 as of January 2022)

North America

East Asia◦Beijing◦hangchun◦Chengdu◦Chongqing◦Dalian◦Guangzhou◦Qingdao ◦Seoul◦Shanghai ◦Ulaanbaatar◦Shenzhen ◦Kaohsiung◦Tianjin◦Taipeietc.
◦Wuhan◦Hong Kong

etc.

◦Toronto◦Vancouver◦Chicago◦Detroit◦Houston◦Los Angeles◦New Yorketc.

◦Portland◦Seattle◦Silicon Valley◦Torrance◦Washington D.C.
etc.

48cities in total

28cities in total
Latin America◦Buenos Aires◦Rio de Janeiro◦Sao Paulo◦Santiago◦Bogota

etc.

◦Quito◦Mexico City
◦Lima
◦Caracasetc.

20cities in total

Asia & Oceania◦Dhaka◦Phnom Penh
◦Bengaluru◦Chennai◦Kolkata◦Mumbai◦New Delhi◦Jakarta◦Surabaya◦Vientiane◦Kuala Lumpur◦Nay Pyi Taw◦Yangon◦Islamabad◦Karachi◦Lahore◦Manila◦Singapore◦Colombo◦Bangkoketc.

◦Hanoi◦Ho Chi Minh
◦Brisbane◦Melbourne◦Perth◦Sydney◦Aucklandetc.

40cities in total

Note: Number of cities in which the seven Shosha have established business locations derived from Annual Reports (Integrated Reports) 2021, websites
and other sources (this number differs from the numbers disclosed by individual companies).
East Asia: China, Hong Kong, Taiwan, Korea, Mongolia

SHOSHA Handbook 2022

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1-4

Using a Variety of Functions to Create Businesses

The Shosha make use of various functions to create many types of business. These functions areconstantly becoming more sophisticated in response to changing times and environments.

Origin / Core Function

Businesstransactions(Global trade)

Intermediate transactions concluded between companies
wanting to sell goods and services and their customers

Chapter 1

Business transactions and associated functions thathave developed as a result

What Are the Shosha? The Strengths of the Shosha

Analysis, management and support functions

Informationgathering

Marketdevelopment

Gather and analyze widely
ranging information on
economics, trade, international
affairs, industry, etc., and apply
it to business

Gather and analyze information
on supply and demand trends
and new technologies, and use
it to develop domestic andoverseas markets

Finance

Risk management

Provide unique financial
functions such as support for
financing and leasing business

Analyze and minimize businessrisks based on accumulated
knowledge

Logistics
Aim for the most efficientlogistics by utilizing networks
connecting the entire world

Functions developed as a result of increasing thenumber of subsidiaries and related businesses

Provide total group company management support from businessBusinessdevelopment through expansion
As organizers, the Shosha utilize their domestic and international
management
to bring together and coordinate partner companies with
(Business Investment) networks
outstanding capabilities and technologies

08

SHOSHA Handbook 2022

1-5

The Continuously Evolving Functions and Roles of the Shosha

Amidst the constantly changing external environment, the Shosha have always adopted a flexible,
autonomous approach to evolving and expanding their roles and the services they offer, while
anticipating and identifying the current needs of industry and society.
As discussed in P.11 Column① below, the Shosha have faced doubts about their future, such as
when people talked about "The Decline of the Shosha," or "The winter years of the Shosha." For theirpart, the Shosha took a positive attitude and repeatedly reformed themselves.
We believe this ability to respond to change is in itself the greatest strength that the Shosha
possess.

◦The Evolution of the Functions and Roles of the Shosha
1945

1950

1960

Postwarrecovery

1970

Rapid economic growth

1980
Stable growth

1990
Bubbleeconomy2000
Post-bubble

Historical background▶World War II ends (1945)▶Private foreign trade resumes (1947)▶Fixed exchange rate (1949)

2010

The Rise ofProtectionism

Globalization▶Globalization 9.11 terrorist
attacks (2001)▶China joins the WTO (2001)▶The GFC (global financial
crisis) (2010)▶Korean War (1950)▶Export promotion measures (1952)▶European sovereign debt
crisis Archipelago (2010)▶Shosha authorized to hold limited foreignexchange open positions (1956)▶Great East Japan
Earthquake (2011)▶Nixon Shock (1971)▶Boom triggered by the Plan for Remodeling
the Japanese Archipelago (1972)▶Paris Agreement(2015)▶Floating exchange rate system introduced (1971)▶First Oil Crisis (1973)▶Intensified
USA-China
trade friction(2018)▶Second Oil Crisis (1979)▶Plaza Accord (1985)▶Bubble economy
Berlin Wall comes down (1989)

Reputation▶Earth Summit (1992)▶Asian currency crisis (1997)"Almighty
Shosha"debate"The Decline of
the Shosha"
debate"WickedShosha"debate"The winteryears of the
Shosha"The roles and functions of the Shosha◦ Business transaction functions◦ Risk management◦ Information gathering functions◦ Market development functions

functions◦ Finance functions◦ Shosha finance (Financial functions)◦ Import/export offoods, textiles andlight industry products◦ Earn foreign
currencies

Introduce foreigntechnology◦ Export manufactured
products (ex. heavy &chemicals industries(iron & steel,shipbuilding, plant,
petrochemicals, etc.))

management
functions◦ Upgrade
information
gathering,marketdevelopment,
finance, risk
management◦ Support◦ Import raw materials◦ Resources & energy▪ Development▪ Procurement▪ Preparations foralternative energy
sources▶COVID-19
pandemic(2020)

Debate over whether
Emerging"The winter years
Reassessing
the IT revolution will
economies/of the Shosha" trading company
sideline the Shosha resources boom
(Return)functions◦ Business◦ Logistics functions

2020

overseas
expansion◦ Promoteimports Promotecommercialization◦ Develop
domestic
demand◦ Upgradebusiness
investment,
logistics andother functions,and riskmanagement
methods◦ Respond to

globalization andthe information
revolution◦ Build up
logistics andsupply chains◦ Respond to
globalenvironmental
problems◦ Value chain

and integrator
functions thatmake use ofotherfunctions◦ Platformer

functions◦ Improve

infrastructure
in Japan andoverseas◦ Realize more
comfortable
lifestyles◦ Prepare for the
aging society◦ Respond tocarbon neutral
and DX◦ Realize SDGs

SHOSHA Handbook 2022

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1-6

The Shosha Functions to Make Proposals to Meet Wide-ranging Needs

The functions of the Shosha described in P.8 Chapter 1-4 are linked to the strengths of the Shosha when they
engages in a wide variety of businesses. By leveraging these strengths, the Shosha can respond to changes in thetimes and the environment.

Extensive
knowledge ofmarkets aroundthe world

What Are the Shosha? The Strengths of the Shosha

★

★★
★

In-house experts
in areas such as
taxation,
accounting,finance, legal
matters and risk
management

Networks covering
a wide variety ofindustries

Ample financial
resources

Ability to operate
entire value chains
efficiently

Ability to respondto customers'
needs by providing
solutions to all
their problems

Ability to fosterand manage
businesses thatwork together toincrease value

10★

Chapter 1

Ability to assesscollected
information anduse it to develop
new businesses
and markets

Know-how
accumulated overa long history

SHOSHA Handbook 2022

Column

1

How the Shosha Overcame a Variety of Crises

Although the Shosha have been key drivers of Japan's

adopted measures to improve management, including steps

postwar growth, they have certainly not enjoyed smoothto reduce their interest burdens by diversifying their funding

sailing at all times. As they faced multiple difficulties in themethods and preventing bad debts through more rigorous

process, they responded to the needs of the times byrisk management. They also became more proactive towards

flexibly evolving their functions.

exports to the oil producing nations, which had begun to

1960s"The Decline of the Shosha" debate
The first indication of doubts in the future of the Shoshacame in the form of an article on "The Decline of the
Shosha.*1" Since trade was the mainstay business of the
Shosha, the argument went, their services would no longer
be needed if manufacturers became large enough toplay a much greater role in the global economy following theoil crisis, and towards overseas investment and entry into
new business sectors.

1990s

The "collapsing Shosha" debate and the theory
that the IT revolution would eliminate the needfor the Shosha

establish their own sales networks. In reality, however, JapanThe after-effects of the collapse of the bubble economy

was in the midst of its rapid growth era, leading to a situationand the Asian currency crisis presented the Shosha with an

where the manufacturers needed the Shosha more than everunprecedented management problem in the latter half of the

because of their skills in procuring the necessary raw

1990s, prompting business magazines to put out numerous

materials and introducing first-class technology from

special editions on the collapse of the Shosha. This led to aoverseas. The manufacturers and the Shosha also worked

sectoral restructuring whereby the Shosha sought to get

together to develop export markets and steadily expand

back on their feet again by focusing on their core

their businesses. Several factors were behind the rapid

competences, liquidating their unprofitable businesses, andadvance of the Shosha. The debate over the decline of thewriting off their problem loans. Other observers wondered

Shosha not only provided them with an opportunity towhether the IT revolution would render the intermediarystrengthen their corporate structures, but also encouragedfunction of the Shosha unnecessary. Against thisthem to formulate long-term strategies that included

background, the Shosha saw business investment as a newdiversifying their operations.

way out of their difficulties, proactively expanding their

Around the time of the Oil Crisis

Criticism of the Shosha and the theory thatthey were no longer neededSocial criticism of the Shosha mounted from the second
half of 1971 through 1975, when the Japanese economy
faced disruptions caused by rapid price increases. The
Shosha were seen as the ringleaders behind runaway
inflation because they were accused of hoarding andwithholding goods from sale. Japan Fair Trade Commission

resource and energy sectors, and their businesses inemerging economies such as China. They also channeledmore effort into their downstream businesses in Japan.
Making greater use of IT in the logistics sector, they moved
ahead with supply chain management initiatives designed toenhance their customers' production and sales activities.

Second half of the 2000s through the first half of the 2010s"The winter years of the Shosha, Return? "The turmoil occurring in the US financial markets led to acarried out investigations, while the top management of themassive credit crunch, resulting in a global recession thatmajor Shosha were summoned to the Diet (Japan's

caused major countries to post negative growth across theparliament) as a witness. This alerted the Shosha to theboard. Shosha sales fell sharply, simultaneously leading to a

impact that their own activities had on society and to the

sharp decline in profitability. While China avoided themagnitude of their social responsibilities. As a result, theyconsequences through massive fiscal investment to maintaindrew up Sogo-Shosha's Code of Conduct*2, which declared

positive growth, the excessive consumption of resourcesthat the entire sector would henceforth act in a spirit ofthat accompanied this growth led to a sharp rise in global

self-restraint.

commodity prices, inevitably causing the resource bubble to

Second half of the 1970s through the first half of the 1980s"The winter years of the Shosha"
The global economic stagnation and ongoing appreciation

burst. The profitability of Shosha investee companies
deteriorated and their business investments depreciated asa result, but they successfully maintained market confidenceby cutting and disclosing their losses as quickly as possible.

of the yen against the dollar that followed the Oil Crisis
eroded Shosha profits, ushering in what was known as "Thewinter years of the Shosha." Weaker Shosha profits were
attributed to four factors: ①the Shosha were slow to react tochange in Japan's industrial structure as it made thetransition from heavy industries to lighter, more compact
industries; ②growing exchange and country risk; ③
manufacturers' growing disengagement from Shosha; and④increasingly bloated in-house organizations. The Shosha
survived the winter years of the Shosha by taking a moredefensive stance. To overcome these problems, they

*1 In 1961, Japan's The Weekly Economist magazine published a report
entitled Are Japan's Shosha in Decline?
*2 Formulated on May 10, 1973, revised as Shosha's Corporate Code of
Conduct on July 8, 1999. see P.46-47 Column⑦ for details.
Reference materials: Seminar: Nihon no Sogo Shosha (Second
edition) (Ed. Research Division, ITOCHU Corporation, Pub. Toyo Keizai
Shimposha)
Sogo Shosha no Kenkyu -- Sono Genryu, Seiritsu, Tenkai (TANAKA
Takayuki, Pub. Toyo Keizai Shimposha)

SHOSHA Handbook 202211

Column

2

The Shosha came into being at the same time as Japan's

raw materials in the Philippines, the Malay Peninsula,

Chapter 1

The History of the Shosha

modernization began, and their history shows they faced

Singapore, and other areas in Southeast Asia, then known

many difficulties and transformed themselves in the process

as "the South." They were also obliged to engage in suchof overcoming them. This Column examines the Shosha ①

nontraditional Shosha areas as plantation management andbefore WWII, ②during WWII and under the Occupation, andforestry development. The Shosha were forced to cooperate③post-WWII.

with government policies until the end of the war, and it isbelieved that this wartime experience led to their① The Shosha Before WWII

transformation into more general trading companies in the
postwar era.

The principal prewar Shosha can be divided into three
categories: the Shosha affiliated with the zaibatsu(conglogerates), and textile Shosha, and iron & steel Shosha.
The main zaibatsu-affiliated Shosha are the former Mitsui &③ Postwar Shosha
After Japan's defeat in WWII, the former Mitsui & Co. andWhat Are the Shosha? The Strengths of the Shosha

Co.*1 and the former Mitsubishi Corporation*2. The former

the former Mitsubishi Shoji were dismantled in 1947 underMitsui & Co. had become a general trading company by thethe GHQ memorandum ordering the dissolution of thetime of the Sino-Japanese War and handled all kinds of

trading companies. This dramatically changed the structurecommodities in addition to exporting cotton yarn, coal, andof the Shosha industry. The ability to establish Shosha

raw silk, and importing raw cotton, machinery, and otherwithout adequate capital created a rush to set up numerous

products. In contrast, the former Mitsubishi Shoji handled

small scale companies. The Five Cotton Companies offewer products when it was first established, limiting itself to

Kansai plus Nissho Co. Ltd., (the successor to Suzuki & Co.,

coal and copper from the copper mines it owned, and wasLtd.), Ataka & Co. Ltd., (the designated Shosha of Yawata

reluctant to handle items that it did not produce itself. After

Steel Works), and Iwai Sangyo Co. Ltd, emerged as the

WWI ushered in the Great War economy for Japan, however,it began to handle a wider range of commodities. Whilethese two companies were set up as Shosha by zaibatsu,
Suzuki & Co., Ltd.*3 and other Shosha are said to have done
the opposite by establishing their own zaibatsu.
The textile Shosha included companies with roots in the
textile wholesalers of the Edo period (1603-1868) and trading
companies established to supply raw cotton to spinningcompanies. Five companies in particular -- ITOCHU
Corporation*4, Marubeni Corporation*5, Toyo Menka Kaisha,Ltd. *6 (now Toyota Tsusho Corporation), Japan Cotton
Trading Co., Ltd., *7 (now Sojitz Corporation), and Gosho
Company*8 (now Kanematsu Corporation) -- were known as
the Five Cotton Companies of Kansai. They exemplified thebusiness acumen for which people from the Kansai arefamous as they expanded their business and size in line withthe times.
Steel trading companies included Iwai & Co. Ltd. *9 andAtaka Shokai*10, which became designated trading
companies of Yawata Steel Works, as well as the former
Mitsui & Co. and the former Mitsubishi Corporation which
emerged from the end of the Meiji period. Initially, these steel
trading companies enhanced Japan's military capabilities byimporting iron ore from China, India, and other countries,
transporting it to iron & steel works, and using their products

centers of immediate postwar trade. Around the same time,
Sumitomo Corporation*11 launched trading activities toprovide jobs to repatriates from Sumitomo's business inmainland China. The Act for the Elimination of Excessive
Concentration of Economic Power was promulgated andenforced in 1947. Daiken Co., Ltd., which had been
established during the war through the merger of the former
C. Itoh & Co., Ltd. and Marubeni Shoten, was separated toform ITOCHU Corporation and Marubeni Corporation.
After the Korean War broke out in 1950, the Shosha
greatly expanded their exports and sharply increased theirearnings on the back of special military procurement
demand. Once the truce was called, however, thingschanged dramatically. The textile business faced aparticularly severe decline, and the Shosha, including theFive Cotton Companies of Kansai, immediately fell on hardtimes and suffered huge losses. Moreover, GHQ changed its
occupation government policies and relaxed its orders to
dismantle the zaibatsu, resulting in the emergence of
Mitsubishi Shoji Kaisha Ltd. in 1954 and Mitsui & Co. in
1958. To compete with the zaibatsu-affiliated Shosha, theFive Cotton Companies of Kansai and other trading
companies sought to consolidate their product lines byabsorbing and merging with Shosha specializing in steel andto build machinery and weapons. Over the longer term, they

Shosha Hakusyo(UCHIDA Katsutoshi,
Pub. KODANSHA)

came to underpin the development of Japan's modern
heavy industry.

② The Shosha During WWII and Under
the Occupation
During WWII, the Shosha were forced to close theirbranches and field offices in the United States, Europe, andother opponents, and in some cases their assets werefrozen. Unable to engage in free trade activities, they wereordered by the Japanese government and the military topurchase oil, iron, timber, rubber, and other resources and

12

SHOSHA Handbook 2022

Shosha Hakusyo (UCHIDA
Katsutoshi, Pub. KODANSHA)

machinery. This ultimately led to the strengthening of the
Shoshas' business foundations and eventually spurred theestablishment of an integrated trading company structure that

*1 Founded in 1876. Japan's first general trading company.
Note: Legally speaking, the former Mitsui & Co. and the present-day Mitsui & Co.
are completely different corporate entities with absolutely no continuity
between them.
*2 Established in 1918 as the independent sales division of Mitsubishi Goshi
Kaisha. The company was originally established by IWASAKI Yataro in 1870
as Tsukumo Shokai, a steamship transportation business. After several namechanges and reorganizations, the company became Mitsubishi Goshi Kaisha.
*3 Founded in 1874. Nissho was established in 1928 as a successor to Suzuki
Shoten a year after it went bankrupt and merged with Iwai Sangyo Co. Ltd in1968 to form Nissho Iwai Corporation.
*4 ITOH Chubei commenced linen trading operations in linen in 1858. He set up
Itoh Itomise (Thread and Yarn Store) as a private enterprise in 1893, creating
the predecessor of the ITOCHU Corporation. Itoh Itomise was reorganized as
C. Itoh & Co. in 1914. In 1918, the sales division was split into Itochu Shoten,
Ltd. (the predecessor to Marubeni Corporation) and the former public stockcompany C. Itoh and Co., Ltd.
*5 With its roots in C. Itoh and Co., Marubeni Shoten was established in 1921
through the merger of Itochu Shoten Ltd., and Itoh Chobei Shoten. Sanko
Kabushiki Kaisha Ltd. was established in 1941 through the merger of theformer C. Itoh & Co., Ltd. and other companies. Daiken Co., Ltd. wasestablished in 1944 through the merger of Daido Boeki Kaisha Ltd. and othercompanies.
*6 Established in 1920 as an independent cotton division of the former Mitsui& Co., Ltd. Company name changed to Kabushiki Kaisha Tomen in 1970.
Merged with Toyota Tsusho Corporation in 2006.
*7 Established in 1892. Changed its name to Nichimen Co., Ltd. in 1943, and to
Nichimen Corporation in 1982. Merged with Nissho Iwai Corporation in 2003
and became Sojitz Corporation in 2004.
*8 Fusajiro Kanematsu Shoten of Australia Trading in 1889. Kitagawa Shoten,
the predecessor to The Gosho Company established in 1891. Merged withThe Gosho Company to form Kanematsu-Gosho, Ltd. Changed name to
Kanematsu Corporation in 1990.
*9 Established in 1896. Renamed Iwai Sangyo Co. Ltd. in 1943.
*10 Founded in 1904. Name changed to Ataka & Co. Ltd. in 1943. Ceased to exist
after acquisition by ITOCHU Corporation in 1977.
*11 Originally established as The Osaka North Harbour Company Limited in
1919 with real estate management as its core business. Changed its nameto Nippon Engineering Co., Ltd. in 1945. In 1952, after the ban on theuse of former zaibatsu trade names was lifted, took the name Sumitomo
Corporation.
Reference materials:
Yokuwakaru Shosha --Saishin Gyokai no Joshiki (NAKAOKA Inataro, Pub.
NIPPON JITSUGYO PUBLISHING)
Sogo Shosha no Rekishi (OMORI Kazuhiro, OSHIMA Hisayuki, KIYAMAMinoru, Pub. Kansei Gakuin University Press)

Book
introduction

3

The catchphrases used to describe the Shosha's
activities have changed with the times.
Today, "from mineral water to communications

Catchphrases That Summarize the Shosha's Activities

would support rapid economic growth.

Columnsatellites" is often used. At the beginning of the 20th
century, the slogan was "from bird feed to warships,"
but this changed to "from ramen*1 to missiles."Following complaints that "missiles" were not goodfor the corporate image, however, "rockets" or"aircraft" were adopted instead and used proactively.
The idea was to use a simple expression thatconveyed the idea that the Shosha handle a very wide
range of products, from the smallest to the largest.
However, the message that the Shosha handled every
conceivable product unfortunately conveyed thenegative impression that they were suspicious mega
corporations. We believe this was one reason for thecriticism of the Shosha*2 that occurred in the 1970s(see Page.11 Column①).
Shosha are sometimes compared to amoeba
because they have historically survived by flexibly
adapting their business formats to the major trends ofthe times. In recent years, they have become involvedin such a wide range of fields that it has become
impossible to describe their business in a few words,
not least of all because they handle an almost infinite
variety of products, from tangible goods to intangible
services. Many catchphrases have been used todescribe the activities of today's Shosha as they
constantly create new businesses and expand
globally. It will be interesting to see whatcatchphrases emerge next and whether they gain
global currency.

The Shosha
handle a very wide
range of products,from the smallest
to the largest.

Sogo Shosha no Kenkyu-- Sono Genryu, Seiritsu, Tenkai

The history of sogo
shosha is explained
in detail.
Author :TANAKA Takayuki,
Professor, Faculty of
Economics, Senshu
University.
Publisher：Toyo Keizai
Shimposha

https://www.jftc.or.jp/publications/assets/pdf/shosha_
research_201203.pdf

Leisure Facilities
Photo courtesy of Hanwa
Co., Ltd.

Resin Raw Materials
Photo courtesy of Inabata & Co., Ltd.
*1 Sales of Nissin Foods' Chicken Ramen started in May 1958. The packs
weighed 85g and the retail price was ¥35.
*2 Oil prices rocketed when the Fourth Arab-Israeli War broke out in 1973.
The mass media and consumer groups accused the Shosha of causing
the jump in prices for petroleum products and general consumer goods
by hoarding and withholding goods from sale. The top management of the
major Shosha were summoned to the Diet (Japan's parliament) as part ofits intensive investigations into price rises.

SHOSHA Handbook 2022

13

2-1

Trade and Business Investment Are the Two Cornerstones

The Shosha have two sources of revenues: traditional trading, and their growing investment activities. Theirbusiness portfolios are thus based on two cornerstones, trade, and business investment.
Their basic business model for trade consists of utilizing global information, logistical networks, and financial
resources to seek buyers and sellers on behalf of their customers, and earning commissions on linking them together.
In contrast, the business investments made by Shosha have various objectives. Unlike investment banks andfunds, they seek neither capital gains on sales of the businesses involved nor dividend receipts from the outset.
Instead, they engage in long-term ownership to foster the businesses themselves in the hope of expanding trade orfinding synergies with other businesses under their ownership. In addition to acting as a sole investor, they seek
strong partners to make joint investments with a view to securing knowhow in new sectors. Both cases arecharacterized by relatively long-term strategic investments and a deep involvement in managing the targets of theinvestments, or investee's.

Chapter 1

Shosha revenue structures are transitioning from a focus on commissions arising from conventional trading
towards the wide-ranging revenue opportunities obtainable from the manufacturing and service businesses in whichinvestments have been made, as well from the overall activities of the group, including subsidiaries (see P.16 Chapter
1.2-3).

What Are the Shosha? The Shosha's Business Model

Differences Between the Trade Business and Business Investment
Trade businessBusiness investment

Beef Producers

Beef farms

Beef cattle breeding and production(ranching)(Business investment)

Improvement offeed, breeding
methods, etc.
for higher
quality
Beef importer

Involvement in
the production
process

Meat processing plant*Processing beef to meet customers' needs(Business investment)
Value-added
through quality
and hygiene
management,
branding
strategies, etc.

Customers(processors, wholesalers,
food service industry, etc.)
Shosha revenues(commissions)

14

SHOSHA Handbook 2022

Involvement in
the processing
process

Customers(wholesalers, food service
industry, etc.)
Shosha revenues(commissions + labor charges,
dividend receipts from the business)

2-2

The Features of the Shosha's Business Investments
They cover a wide spectrum of businesses from upstream to downstream sectors.

They utilize the Shosha's overall capabilities based on typical functions such as
capital, managerial and organizational strengths to advance into hitherto unfamiliar
business domains. The Shosha did not have the diversified functions they possess
today from the outset. Instead, they have acquired them through businesses
with partners in various specialist sectors, and in many respects the investment
experiences they have had with their partners around the world have enhanced
their overall capabilities.

While dividends and equity gains are the basis of the returns that Shosha derivefrom their business investments, they also earn commissions on trading in raw
materials, profit margins on purchases and sales of facilities, and advisory fees.

They do not see business success or failure in terms of whether a single
investment deal is profitable or not. There are cases where they earn profits byengaging in similar investments in similar schemes with other companies, anddeploy this approach to other countries and regions.

Unlike investment banks and funds that aim for short-term capital gains, they
make strategic investments based on long-term ownership.

Book
introduction

Toward a New Foreign
Trade Country
Full text isavailable on the
JFTC website.
Author : Special ResearchCommittee on"midterm trade andinvestment vision"◦From Trade to Business Investment(trends affecting Japan and the Shosha)
While Japan is known as a trading nation, its balance of payments
statistics showed that its trade balance posted a deficit of JPY1.65
trillion (preliminary balance of payments statistics, Ministry of Finance)in fiscal 2021. In contrast, its primary income balance comprising
dividends and interest received was in surplus to the tune of JPY21.59
trillion.
Japan's primary income balance surplus comprising investment
income began to exceed its trade balance surplus in fiscal 2005 andtoday has become the primary support for Japan's current accountsurplus.
A similar situation applies to the Shosha because the earnings of theiroverseas subsidiaries and affiliates began to exceed those of theirparent companies from around the same time. The shift from trade tobusiness investment suggests that a similar trend is affecting Japan and
the Shosha.

https://www.jftc.or.jp/publications/assets/pdf/trading_
200801.pdf

In light of these developments, JFTC compiled and published a
special research report entitled Towards a New Trading Nation in
January 2008.

*1 Environment, Social, Governance*2 "The Three Corporate Principles" (Mitsubishi Corporation), "Benefit for self and others, private and public interests are one and thesame." (Sumitomo Corporation), "Sampo-yoshi" (ITOCHU Corporation and Marubeni Corporation) etc.

SHOSHA Handbook 2022

15

2-3

The Shosha's Value Chain Strategy

A value chain is a series of activities in which companies engage in order to deliver value to customers. Shosha
covers everything from developing and procuring materials, to manufacturing, processing, sales and services. Value
chains are the key to ensuring higher returns through traceability, reliability and stable supplies. They increase valueadded for individual businesses by linking the knowledge and information that Shosha have gained throughoperations in a wide range of sectors and are very important for understanding how today's Shosha work.
Understanding a value chain is very important when it comes to understanding the Shosha.
Take beef as an example (see figure below）.
(1) The Shosha invest in feed manufacturers to develop, produce and procure the feed essential for raising beef
cattle, and supply it to livestock farmers.
(2) They invest in the business of raising and producing beef cattle, and supply feed to the ranches they manage.

Chapter 1(3) They invest in the meat processing business to add value through processing to meet customer needs, thoroughquality control, and branding.
(4) Downstream, they not only sell to supermarkets and other retailers, restaurants and other food service businesses,
but also engage in these businesses themselves.

What Are the Shosha? The Shosha's Business Model

This participation in mutually-related businesses in upstream through downstream sectors gives them a birds-eyeview of the overall business processes involved, enabling them to offer financial, information and logistical functions
as necessary. This, in turn, helps them enhance customer convenience and aspire to higher value-added business. It
also explains why value-chains are significant for the Shosha, and why they are building value chains in various
sectors, including energy development, foods and textiles.

The Beef Value Chain
The Areas of the Shosha Buisiness

（1）
Feed
development,
production andprocurement

（2）
Ranch
management,
beef cattle
breeding andproduction（４）
Supermarkets（3）
Beef
processing

Upstream（４）
Food service
industry such as
restaurants
Downstream

A Farm Abroad

Beef Processing Plant

Supermarket (Summitstore)

Photo courtesy of Kanematsu Corporation

Photo courtesy of Kanematsu Corporation

Photo courtesy of Sumitomo Corporation

16

SHOSHA Handbook 2022

Column

4

As the Shosha business is broad and global, it isthat need addressing must be recognized as issues

The Challenges Facing the Shosha

affected by domestic and international economic

that require countermeasures. They include matterstrends, changing social and political conditions,that are directly related to business, laws andand technological innovations (changes in industrial

institutions, and the social environment. It is also a

structure). These external factors may have agiven that business activities always involve risk

positive or negative impact on business, and thosethat must be dealt with.

Key Challenges Facing the Shosha
Matters directly related to business◦ Strengthen the supply chain: achieve supply chain DX (digital transformation), deal with economic security, develop
strategies to support the development of key technologies and prevent its leaks, strengthen/review existing businesses,etc.
◦ Encroachment on existing business areas: rise of platformers such as GAFA (Google, Apple, Facebook, Amazon),spread of new technologies such as AI and blockchain◦ Impact of the COVID-19 pandemic: emergence of supply chain vulnerabilities, economic slowdowns in China andelsewhere

Laws and institutions◦ Economic partnership agreements, investment agreements, tax treaties, social security agreements◦ Trade- and investment-related procedures◦ Security Export Control System◦ International taxation, Japanese taxation and accounting standards◦ Policy program related to the Promotion of Overseas Infrastructure Systems◦ Improve compliance and governance and strengthen internal controls

Social Environment◦ Sustainability management with SDGs and ESG in mind
◦ Promote diversity and inclusion: develop diversity in human resources and strengthen them by promoting work styles
that match life stages◦ Promote initiatives to become carbon neutral◦ Develop responses to the advent of the digital society (e.g., penetration of the metaverse into society)◦ Ensure the safety of employees and the business

Major Risks Surrounding the Shosha
Business-related◦ Market risk (interest rates, exchange rates, commodity prices, listed security prices）◦ Credit risk
◦ Business investment risk
◦ Country risk

Management-related◦ Legal and compliance risk
◦ Information systems security risk

External Environment◦ Risk arising from changes in the macroeconomic environment◦ Climate change- and global environment-related risk
◦ Risk arising from natural disasters, terrorism, and emerging infectious diseases (employee safety, business continuity)
ReferenceMaterials：Each company's annual securities report ／ HP.etc

SHOSHA Handbook 2022

17

1-1

SDGs and the Shosha

The United Nations adopted the SDGs (Sustainable Development Goals) in 2015 with the objective of solving
common global economic, social, and environmental challenges by 2030. The SDGs call upon companies tocontribute to achieving these objectives through their business operations.
The Shosha have always responded to the demands of the times by constantly reviewing the roles and functions
they should fulfill to deal with the changing environment. It is often said that the Shosha business is difficult tounderstand because it covers a wide range of sectors and complex business methods. That said, the 17 SDGs andthe businesses handled by the Shosha have much in common, as evidenced by a special JFTC research report

Chapter 2

entitled Sustainable Development Goals and Shosha. There are six main points of affinity between the Shosha
business model and the SDGs.

The Shosha Are Active Worldwide Working to Resolve Global Social Problem◦Affinities Between the Characteristics of SDGs and the Strengthsof the Shosha
Characteristics of SDGs

The Shosha strengths(perspectives required to achieve the goals)

Global, borderless approach tosocial issues
Composite approach

Ability to grasp global issues quickly and respond across national
borders

Composite approach
Ability to create business through diverse functions and services,multi-faceted resources and expertise

Partnerships

Partnerships

Large-scale project organization function using partners withexpertise in various regions and fields, comprehensive strength

Innovation

Innovation

Discernment to open new business fields, ability to offer solutions
to diverse challenges

Bird’s-eye view approach
Goal-based governance("back-casting")Book
introduction

Global networks

Bird’s-eye view approach
Diverse activities from upstream to downstream processes

Focus on the future
Future-oriented business development that anticipates the times
and looks ahead to the next generation

Sustainable Development Goals& SHOSHA
Featuring case studiesof Shosha activities
Author :Japan Foreign
Trade Council, Inc.
Special ResearchCommittee on
Sustainable
Development
Goals & SHOSHA
Supervision : KANIE Norichika,
Professor,
Graduate Schoolof Media andGovernance, Keio
University
https://www.jftc.or.jp/publications/assets/pdf/SDGs_2020_
0001.pdf
18

SHOSHA Handbook 2022

Shosha Symposium (Organized by JFTC)

https://toyokeizai.net/articles/-/580070

1-2

The Shosha's Sustainability

Sustainability management has come into the spotlight as a result of growing interest in the SDGs and ESG*1.
Companies must not only pursue profits but must also contribute to the survival of society by taking a proactive
approach to resolving social, environmental, and other issues. Investors have come to value highly those companies
that incorporate environmental and social impacts into their management strategies and expand ESG investment,
and demand that they adopt sustainability initiatives.
The Shosha have therefore identified a number of social issues that should be addressed proactively on a priority
basis as key sustainability issues (Materiality), and have incorporated it into their management policies. They aim toincrease enterprise value by maximizing their own strengths and Shosha functions and working together with groupcompanies to resolve problems. The Shosha approach to sustainability is embedded in their corporate DNA, either
as a corporate philosophy*2 established at the time of the company's founding or as an inheritance from years gone
by. They have actually been promoting socially and environmentally conscious business activities since before theSDGs and ESG came into the spotlight. Based on this philosophy, they will maintain a sincere commitment totackling and resolving social issues with a view to enhancing their enterprise value and achieving the SDGs, which
address key issues.
Recently, they have been working on activities aimed at helping a wide range of stakeholders understand theirsustainability efforts, preparing sustainability reports and disclosing itemized ESG information.
*1 Environment, Social, Governance*2 "The Three Corporate Principles" (Mitsubishi Corporation), "Benefit for self and others, private and public interests are one and thesame." (Sumitomo Corporation), "Sampo-yoshi" (ITOCHU Corporation and Marubeni Corporation) etc.

◦The Shosha’s Activities and the Related SDGs
IssuesShosha’s Activities

Related SDGs

in renewable
Conservation of Global Environment Engage
energy projects, recycling

Renewable energy business P.20-21
Circular economy business P.22-23
Column⑤ Biodiversity conservation
P.23

Responsible for Stable Supply

Food business P.24-25
Energy business P.26-27
Mineral resource business P.28-29

Supporting Global Business

Logistics service business P.30-31
Column⑥ Respecting Human Rights in
Supply Chains P.31
Overseas industrial parks business
P.32-33

Supporting More Comfortable
Lifestyles

Infrastructure business P.34-35
Consumer goods industries P.36-37
Healthcare business P.38-39

Create New Values

Digital and next generation technology
business P.40-41

Enriching People and Society

Promote diversity and flexible work
style P.42
Shosha's CSR Activities P.43

projects, and environmental
conservation with a view torealizing a carbon-neutral
society.

Create stable food andresource supply systems.

Support business activities
in various ways, build supply
chains that reduce theenvironmental impact oflogistics and protect humanrights.
Engage in infrastructure,
consumer goods industries
and healthcare businesses
to enable everyone to enjoy
healthy and prosperous lives.

Create innovative
businesses that
contribute to resolvingsocial issues.

Create opportunities andworkplaces to enable diverse
workforces to share values
and grow. Play a part in thedevelopment of countries andregions through CSR activities.

SHOSHA Handbook 202219

Conservation of Global Environment ① ①

2-1

Renewable energy business
Disasters arising from climate change have increased globally by 83% in the two decades since
2000. The climate change issue now threatens the security of people in both developed anddeveloping countries, and the world must come together to resolve it and realize a sustainable
society. Shosha management policies position climate change as one of their most important issues.
They take the impact on climate change, the environment, and society into consideration when
considering investments and loans for business and development projects such as infrastructure
improvement.
Since the Paris Agreement of 2015, the global trend toward decarbonization has accelerated, andChapter 2

as of April 2021, more than 120 countries and regions had declared that they will achieve carbon

The Shosha Are Active Worldwide Shosha Initiatives

the coal-fired power generation business. More specifically, they are engaged in efforts to build andneutrality (zero net greenhouse gas emissions) by 2050. Some Shosha have also adopted explicit◦商社が参画している海外の主な再生

initiatives, setting their own greenhouse gas reduction targets
and announcing their withdrawal
可能エネルギー発電プロジェク
ト fromFinland

NorwayGlobal Natural Energy
Generating Capacity in 2022

Unit : GW(referecce)

Hydrogeneration

Renewable
power
capacity
Geothermal
power
generation
Biomass &Biogas power
generation

Wind power
generation

Solar power
generation

1 China China China China Spain China
2 U.S.A U.S.A Brazil Indonesia U.S.A Brazil
3 Japan Germany U.S.A Philippines China Canada
4 Germany India Germany Turkey Morocco U.S.A
New
South
5 India Spain India ZealandAfrica Russia
World

760

743

145

14

6

China
Laos

MoroccoEgypt

JordanOman
Thailand

Qatar

Malaysia

Kenya

Singapore

1,170

Generation Capacity Total 1,668
Note: Totals are not necessarily consistent because fractions of the displayed
units have been rounded(Source: Prepared by JFTC based on the Renewables 2021 Global Status Report- REN21)

South Africa

Belgium
Netherland
UK
Germany
IrelandWind Power Generation (USA)Photo courtesy of Marubeni Corporation

20

SHOSHA Handbook 2022

Solar
power generationWind
power generation
Biomass & Biogas
power generation
Geothermal
power generation

Portugal

Spain

France

Italy

Polandexpand their power generation businesses in Japan and around the world using renewable energy
sources (geothermal, solar, wind and hydropower) as alternatives to thermal power generation using
fossil fuels such as oil and coal.
They are also involved in various initiatives to advance the transition to a carbon neutral society.
These include expanding the use of hydrogen energy, which is now in the spotlight as a nextgeneration clean energy alternative to fossil fuels, as well as promoting next-generation vehicles suchas electric vehicles and developing smart cities.
According to the Renewable Energy Policy Network for the 21st Century (REN21), a non-profit
organization headquartered in Paris, global renewable power capacity (excluding hydroelectric power)
amounted to 1,668 gigawatts (GW) in 2020 (see table on the left-hand page). Currently solar power
has the highest renewable power capacity, generating around 46% of the total, followed by wind
power with around 45%.
The global map below shows the main overseas renewable energy power generation projects inwhich the seven Shosha* are involved（As of the end of March 2021）。
* Seven Shosha: ITOCHU Corporation, Marubeni Corporation, Mitsubishi Corporation, Mitsui & Co., Ltd., Sojitz Corporation, Sumitomo
Corporation, Toyota Tsusho Corporation (The same applies hereinafter.)

17,9593,407

Total power
generation
capacity
Equity power
generation
capacity(seven

MW Shosha total)(five

MW Shosha total*)* Marubeni Corporation, Mitsubishi Corporation, Mitsui & Co., Ltd.,
Sojitz Corporation, Sumitomo Corporation

CanadaUSA

Solar Power Generation (Chile)
Photo courtesy of Sojitz Corporation

Korea
TaiwanMexicoPhilippines
USA (Hawaii)Indonesia

BrazilJamaica

Peru

Australia
Chile
UruguayArgentine

Offshore Wind Power Generation (Netherlands)
Photo courtesy of Mitsubishi Corporation

Source : Prepared by JFTC based on Annual Reports, Sustainability Report, Integrated Reports published in 2021, websites, etc.

SHOSHA Handbook 2022

21

2-1

Conservation of Global Environment ② ①

Circular economy business
Garbage is inevitably generated as we go about our lives and companies do business. To realize asustainable society, it is essential to follow the 3R Initiative: "Reduce" waste, "Reuse" items that still
have usable aspects and "Recycle" waste and use it as a resource for new products. In addition to
the 3R Initiative, global efforts are accelerating to achieve a "circular economy" -- an economic modelthat create added value through services such as sharing and leasing while reducing the use ofresources during manufacturing.
With their networks in many industries in Japan and around the world, the Shosha are working torealize a circular economy by focusing on adding new value using the various types of upstream andChapter 2

downstream waste created in a wide range of business areas in the value chain.

The Shosha Are Active Worldwide Shosha Initiatives

environmentally friendly materials in the field of chemicals. In the garments sector, they recycle used

They recycle metal waste (scrap metal) generated from factories and cities in the metal sector,
reuse auto parts in the machinery sector, and recycle plastics by developing and selling
clothing and scraps generated during manufacturing, while in the food sector, they recycle containers
and packaging and reduce food loss.
Sumitomo operates
a large-scale energy
Sumitomo storage facility in
Corporation
Namie, Fukushima
Prefecture using spentbatteries from EVs. It contributes tothe achievement of RE100 targets by
4R Energy Corporation, which recycles
used batteries.
"EV Battery Station" in Namie
Photo courtesy of Sumitomo Corporation

ITOCHU
Corporation

ITOCHU has developed garbage bags made partly outof the estimated 20,000㎥ of marine plastic garbage
washed ashore each year, then collected, sorted andcrushed in Tsushima City, Nagasaki Prefecture. It has alsocommercialized shopping baskets and collection boxes
for use at some FamilyMart stores.

Marubeni
Corporation
Tableware
Upcycling Food
Waste
Photo courtesy of
Marubeni Corporation

Marubeni has developed proprietary technology to create"edish", upcycled tableware using the skins, cores and otherfood waste such as wheat bran (the residue from wheat grain
refining) generated in food company manufacturing processes.
Edish can be recovered after use, converted into compost
together with food scraps, then used in soil for growing
vegetables and fruits.

Plastic Bags Containing
Marine Plastic Waste

Shopping Baskets Using
Marine Plastic Debris

Hanwa Co.,Ltd.

Photo courtesy of ITOCHU Corporation

PET Raw Materials
Recycled from Discarded
SojitzCorporation PET Bottles
Photo courtesy of Sojitz
Corporation

PRT (PET Refine Technology Co., Ltd.) uses
its proprietary chemical recycling technology
to reprocess PET bottles into resin of the samehigh quality as virgin resin derived frompetroleum. It is mainly used in applications
such as PET bottles for beverages.

22

SHOSHA Handbook 2022

Aluminum Sash Scrap
Photo courtesy of Hanwa Co., Ltd.

Hanwa collects used aluminum cans, remove foreignmaterials and matter, and supply remelt scrap ingots to rolled
aluminum manufacturers after having melted down the metal
and adjusted the constituents. They are then used again asaluminum cans. Similarly, they are also involved in the "sash tosash" business of recycling aluminum window sashes.

Column

5

The business activities of global Shosha benefit

Formulation facilities of biologicalpesticide with less environmental
impact (India)

from the global biodiversity created by the

Biodiversity Conservationinterrelationships among a wide variety of living

Photo courtesy of Mitsui & Co., Ltd.

organisms. To conserve this biodiversity, they
monitor populations of rare plants and animals
and their habitats and conduct other surveys on
the impact of their resource development, foodproduction, and other operations. They are also
striving to minimize the negative impact ofpesticides and chemical fertilizers by reducing
their use. In addition to CSR and other nonbusiness activities (see P.43, Chapter 2.2-6), they
contribute to biodiversity conservation byprotecting endangered species, engaging in forest
management and supporting conservation

ALALA series decomposed
easily in the sea and rivers

activities and research.

Photo courtesy of Iwatani Corporation

Mitsubishi
Corporation

Thailand’s Shinkong Synthetic Fibers
Corporation (Shinkong) plant
Photo courtesy of Mitsubishi Corporation

Mitsubishi has invested inThai Shinkong Industry
Corporation Ltd., which
manufactures and sells PET
resin for beverage bottles inThailand. PET resin is ahighly recyclable mono-material for which robust collection andrecycling systems have been established. Thai Shinkong plans to
introduce chemical recycling technology to manufacture recycled
PET resin, starting commercial production around the end of 2022.

Metal Recycling

JFE Shoji BusinessPhoto courtesy of
Corporation JFE Shoji Corporation
JFE Shoji is actively engaged indomestic and international tradingof steel scrap with a view to
reducing the CO2 emissions
generated in steel production.

As part of its
plastics reuse
Chori
initiative, ChoriCo., Ltd.
recyclesdiscarded PET
bottles at its own recycling
facilities and makes raw
material pellets for polyesterand yarn (ECO BLUE).

Inabata &Co., Ltd.
Repelleted
Resin Materials

Recycled Pellet Extruder
Photo courtesy of Chori Co., Ltd.

Photo courtesy of
Inabata & Co., Ltd.

Inabata collects used plastic and waste plastic from plastic
processing plants for processing and sales, providing a stablesupply of consistently high-quality recycled plastic raw materials.

Using appropriate treatment

NIPPON STEELTRADINGCORPORATION

Nippon Steel Trading has developed abrand of bags that use recycled leather
from leather scraps and other materials
generated during production processes,
as well as discarded airbags andseatbelts.

and recycling processes,
ToyotaToyota Tshusho has achievedTsushoCorporation a recycling rate of over 99% inCollected ELVs

Photo courtesy of Toyota Tsusho
Corporation

the ELV (end-of-life vehicle)
recycling business. It is involved in thebusiness of dismantling and recycling ELVs in
India and Thailand as well as the factory scrap
resource recycling business at a global level,collecting and recyclingscrap generated in the
manufacturing and processing of automobiles
and auto parts. It also carries out researchand development in connection with thedisassembly characteristics of ELVs.

Bag Made from Airbags
Photo courtesy of NIPPON STEELTRADING CORPORATION

Source: Prepared by JFTC based on Annual Reports, Sustainability Report, Integrated Reports published in 2021, websites, etc.

SHOSHA Handbook 2022

23

2-2

Responsible for Stable Supply ① ①

Food businessAccording to the United Nations, the global population was 7.8 billion people in 2020, and is expected to increase
going forward, especially in the emerging economies. By 2050, it is forecast to reach 9.7 billion, which will lead to anincrease in demand for food. One of the major challenges facing the world is ensuring that food is not only available
in sufficient quality and quantity but is also nutritious enough for healthy living.
The Shosha strive to improve agricultural productivity, diversify agricultural suppliers, and establish reliable
procurement routes. Their aim is to deliver stable food supplies through global procurement links that ensure foodsupplies meet demand efficiently. Through their involvement in business areas ranging from raw materials
procurement and processing to product manufacturing, distribution, and retailing, they are able to respond to

Chapter 2

increasingly diverse and sophisticated consumer needs and growing interest in food safety and security. However,there is a danger that forced labor and child labor may be used to support the production of highly labor-intensive
crops. In response, the Shosha and their group companies are together carrying out due diligence on human rights inaccordance with the United Nations Guiding Principles on Business and Human Rights, and insisting on respect for

The Shosha Are Active Worldwide Shosha Initiatives

human rights throughout their supply chains.
Their food safety initiatives include the introduction of new management systems and digital technologies toimprove traceability and support safe, secure, and stable food supplies.

◦Food Business Map
NorwayRussiaFully-closed Life-cycle Aquacultureof Bluefin Tuna (Japan)
Photo courtesy of Toyota Tsusho Corporation
China

Poultry meat
Pork
Switzerland
Beef
Tuna
SalmonShrimpTurkeyGrain
Flour milling
Dairy products
Eggs
Agricultural products
CoffeeBananaPineapple
Sugar
SesameOil seeds
Edible oil refining
Advance into the Smart
Agriculture Field (Japan)
Oil & fats processing Photo
courtesy of Kanematsu Corporation
24

SHOSHA Handbook 2022

Japan

Singapore

ThailandAustralia
MyanmarVietnamPhilippines
Malaysia

Indonesia

◦Key Shosha Initiatives
Improving agricultural
productivity

Strengthen food procurement
and supply capacity

Ensure safety
and quality▪Participate in the agricultural production
business, fishery product aquaculturebusiness, etc.
▪Improve grain collection & shipping, andsales networks▪Supply agrochemicals, fertilizers,
agricultural materials▪Enhance traceability◦Example of Food Value Chain Production & Procurement
Farm management,
Aquaculturebusiness

Primary
processing

Secondaryprocessing

Intermediate
distribution

Retailing▪Grain production,
Grain collection &shipping
Agrochemicals &fertilizers▪Agricultural materials▪Oils & fats, Animal
feeds▪Flour milling, Sugar
manufacture▪Dairy products▪Marine productprocessing▪Marine products,
Meats▪Sesame oil, Edibleoils▪Beverages▪Fruit & vegetables▪Processed food
▪Meat distribution▪Food distribution▪Confectionery/
Alcoholic beverages▪Convenience stores▪Supermarkets▪Mass retailers▪Food service
industry

CanadaDole BusinessPhoto courtesy of ITOCHU Corporation

USA

MexicoGrain Export Terminal (USA)Photo courtesy of Marubeni Corporation

New
ZealandChile
BrazilArgentine

Salmon Aquaculture Business (Chile)
Photo courtesy of Mitsui & Co., Ltd.

Source: Prepared by JFTC based on Annual Reports, Sustainability Report,
Integrated Reports published in 2021, websites, etc.

SHOSHA Handbook 2022

25

Responsible for Stable Supply ② ①

2-2

Energy buisiness
Since Japan lacks natural resources, it must rely on imports from overseas to secure sufficient, stable supplies ofenergy. The Shosha have endeavored to secure rights at their own risk through efforts ranging from negotiating withgovernments of resource-rich countries and companies that hold interests to exploring for resources and investing inbusinesses. They also work with leading overseas partners to expand the number of countries and regions fromwhich they procure resources. At the distribution stage, they contribute to price and supply stability by building
extensive value chains covering everything from refining and trading to managing LPG dealers and gas stations.
As the global trend toward decarbonization has gained momentum in recent years, the Shosha have become
actively engaged in wind power generation and other renewable energy projects to achieve carbon neutrality by 2050

Chapter 2(see P.20-21, Chapter 2.2-2). Since it is extremely difficult to achieve carbon neutrality in a single leap, they must
continue to use fossil fuels until new energy sources become readily available. The Shosha have an important role toplay in ensuring a smooth transition to alternate forms of energy. In order to make cleaner use of fossil fuels, they areswitching from coal and oil to LNG, which has a relatively low environmental impact. Together with leading partners,

The Shosha Are Active Worldwide Shosha Initiatives

they are also promoting research and development into the commercialization of new technologies such as CO2
capture and storage (CCS business) and mixed combustion of fuel ammonia.
The following global map shows the energy and resource rights held by the seven Shosha (As of the end of March
2021). According to METI, Japan was responsible for 40.6% of its own oil and natural gas development* in fiscal
2020, including imports from the equity interests of the Shosha.
*Take-up of oil and natural gas under Japanese corporate equity interests as a proportion of total imports and domestic production volume.

◦Energy Resources Map

RussiaRussia12.2%

NorwayNorth Sea

5.0mt

UK North
Sea

Azerbaijan

Italy

Russia(Eastern Siberia)

Russia(Sakhalin)

31.3%

16.7bm3
MyanmarThailand
Brunei

Middle East

17.7%

Angola8.8bm3125.1mt

Middle East

Equatorial Guinea

17.4%

36.3bm3
27.2bm3
Indonesia

Papua New Guinea

Malaysia

Asia & Oceania

Indian Ocean

Oil & gas
Crude Oil

Iraq
Mozambique

Shale gas & oil
LNG
26

SHOSHA Handbook 2022

Egypt

Abu Dhabi

Australia

16.6%

Qatar
Oman

Waitsia Gas Project(Australia)
Photo courtesy of Mitsui & Co., Ltd.

◦The LNG Value Chain
Development

LNG production

Logistics

Liquefaction

Charterage &LNG carrier operations

Exploration &development▪Rights holdings▪Business investment▪Business investment

Sales

Japan/
Overseas▪Transactions▪Business investment▪Transactions

Upstream

Downstream

Methanol Plant that UsesNatural Gas (Indonesia)◦Japan's Major Petroleum Import
Partners

Photo courtesy of Sojitz
Corporation

Russia
Qatar

4%

Other

6%

8%

144

Kuwait8%

Saudi Arabia

40%

M kl
(2021)

UAE

35%
Share of oil
production volume
Share of natural
gas production

Principal importroutes for oil◦Japan's Major LNG Import Partners

Principal import routes
for natural gas

Papua New Guinea

5%

Other

10%

6%

Brunei

101

9%

RussiaCanada13.3mt

USA

Qatar

14%

Algeria
Nigeria
Qatar

2%

2%

2%

2%
2%
Norway 2%
Kuwait 3%
Brazil 3 %

USA

Other

Iran

Venezuela

18%

89.9

Kazakhstan

Gulf of Mexico

USA

16%

Mexico3.5mt

Malaysia

12%

10%◦Principal Oil-producing Countries

USA

23.1%

9.6bm3

M B/D(2021)

Russia

12%

4%

4%

6%

4%

Iraq

5%

◦Principal Natural Gas-producing
Countries
USA

Other
Egypt
Malaysia

2%
2%

Turkmenistan
Offshore
Brazil2%

2%
Norway 2%
Algeria

23%

22%

4,037
bn m3
(2021)

Qatar

4%
3%
Australia 4% Canada 4%

Saudi Arabia

Photo courtesy of Mitsubishi Corporation

Saudi Arabia

12%

China Canada
UAE

Peru

LNG Shipping Facility(Indonesia)

36%

bn m3
(2021)

USA

18.5%

Australia

Russia

17%

Iran

6%
China

5%

Source: Prepared by JFTC based on Annual Reports, Sustainability Report, Integrated Reports published in 2021,
websites, etc. Graphs were compiled from MOF’s Trade Statistics and BP statistics

SHOSHA Handbook 2022

27

2-2

Responsible for Stable Supply ③ ①

Mineral resource businessIn addition to energy resources such as oil and natural gas, the Shosha handle mineral resources such as iron ore.
They also handle base metals, including aluminum, copper and lead, as well as precious metals, the rare metals(lithium, vanadium, cobalt, nickel, niobium, molybdenum and tungsten) and the rare earths (Lanthanum, Cerium,
Dysprosium, Praseodymium and Neodymium) used in various industries.
The Shosha endeavor to ensure long-term, stable supplies of such resources by securing mining rights toparticipate directly in mine operations and engaging in the smelting & refining business. In recent years, the Shosha
have been working to reform their existing resources businesses in response to the major changes in theenvironment, including the transition to a decarbonized society, and will continue to play a role in ensuring stable

Chapter 2

supplies of resources going forward.
The following map shows how the rights to metal resources held by the seven Shosha are distributed (As of theend of March 2021*).

*Rights that have been confirmed as acquired or relinquished since April 2021 have been added or deleted.

The Shosha Are Active Worldwide Shosha Initiatives◦Metal Resources Map

Kazakhstan

Mongolia

Philippines(Nickel,Cobalt)
New Caledonia

Laos(Nickel)Madagascar

AluminumIndonesia(Nickel,Cobalt)

Stainless steel
raw materials

Mozambique(ferrochrome)

CopperAustralia

CIron ore
UraniumSouth AfricaGold
Silver(Nickel)Zinc, lead
Coal

28

Rare metals

Iron Ore Business(Australia)

Rare earth

Photo courtesy of Mitsui & Co.,Ltd.

SHOSHA Handbook 2022

◦The Steel Value Chain

Recycling

Mine ownershiprightsProcure raw
materials

Manufacture

Processing,
distribution and sales

Recycling

Development
and Mining

Iron ore

Blast furnaces,
Electric furnaces

Coil centers, Parts
manufacturing

Recycling▪Rights holdings▪Business investment▪Procurement of
independently
developed ore▪Loan-purchase ore,
simple purchase ore▪Sales to
manufacturers▪Businessmanagement▪Procure products
Sales to end users▪Scrap Receiving andUtilization

Upstream

Downstream◦Japan's Major Iron
Ore Import Partners

Cerro Verde Copper Mine Project(Peru)
Photo courtesy of Sumitomo Corporation

Canada

Other

6%

8%

Brazil27%

113 59Australia%

Mt(2021)◦Japan's Major Copper
Ore Import Partners

CanadaPapua New
Guinea

USA

Other

4%

(Molybdenum)

11%

Canada4,959

8%

thousand t(2021)

Papua
Venezuela

チリ

38%

12%

Australia
Mexico13%

Indonesia

13%

Peru

◦Japan's Major
Aluminum Import
Partners

Bolivia

Russia

Chile
Other

33%

18%

2,793 15Australia

thousand t(2021)

Brazil%UAE(Molybdenum)

China(Niobium)
Argentine

9%

Brazil5%

14%

New Zealand5%(Lithium)

Lithium Mining Project (Argentina)
Photo courtesy of Toyota Tsusho Corporation © Allken All Rights Reserved.

Source: Prepared by JFTC based on Annual Reports, Sustainability Report, Integrated Reports published in 2021, websites, etc.
Graphs were compiled from MOF’s Trade Statistics

SHOSHA Handbook 2022

29

2-3

Supporting Global Business ① ①

Logistics service business
Considered to be the lifeblood of the economy, logistics are a vital part of the social infrastructure supporting
economic activities and people's daily lives. The Shosha constantly strive to optimize their own logistics and leverage
their accumulated know-how and Shosha functions to provide customers with high-value-added logistical services.
They work with partners in Japan and overseas who possess superior digital technology on the visualization oflogistics networks (movement of goods and transactions) and its integrated management throughout supply chains.
They are also improving efficiency and making labor savings by introducing robotics into warehousing and delivery
operations at ports, depots and distribution centers.
To reduce environmental impacts, they provide businesses with logistical support through green distribution

Chapter 2

initiatives, introducing advanced technologies and other measures to improve domestic logistics.

◦Shosha Logistics Optimization Initiatives
Improve overall supply chain efficiency

The Shosha Are Active Worldwide Shosha Initiatives▪Logistics center business▪Promote DX• Labor-saving, automation• Consolidate logistics networks• Utilize RFID*▪Joint delivery initiatives▪Promote Modal Shift*Radio Frequency Identification technology using wireless Data communications

Trunk
transportation

Deliveries

Ports, freight stations,manufacturing plants, etc.

Logistics bases

Retailers, consumers

Increase depot
efficiency

Improve efficiencyof warehouse operations

Improve efficiency
of delivery operations▪Truck reservation
systems▪ AGV (AutomatedGuided Vehicles)▪Unmanned delivery
robots▪Driverless deliveries◦Green Logistics (key initiatives through operating companies, etc.)

30

Land
transportation◦ Use of large trucks and larger vehicles to increase load
capacity◦ Use mixed loading shipments◦ Devise transportation routes and methods◦ Promote Modal Shift (use railroads and ships)

Marinetransportation◦ LNG bunkering initiatives

Airtransportation◦Use Sustainable Aviation Fuel (SAF) (a petroleum
alternative)

SHOSHA Handbook 2022

Column

6

Since the SDGs all concern human rights, their objective isessentially to realize such rights for all. The world is now approaching

Respecting Human Rights
in Supply Chainsa turning point in the era of human rights, justice, and fairness inbusiness. The Japanese government drew up Japan's National Action
Plan (NAP) on Business and Human Rights in 2020.
Companies are required to comply with human rights due diligence(DD) based on international standards such as the UN's Guiding
Principles on Business and Human Rights, the ILO's International
Labor Standards, and the Voluntary Principles on Security and Human
Rights.
Shosha with global operations have established diverse supply
chains and are directly and indirectly involved in the human rights of
their various stakeholders. Liability for associated environmental
destruction or human rights violations arises when a supply chain
adversely affects the lives of local residents through such things as
environmental pollution or land expropriation. The Shosha are fully
aware of the risks and issues associated with supply chains and work

Public Inquiry Into Labor Conditions
Photo courtesy of ITOCHU Corporation

with suppliers and other business partners to resolve human rights
and environmental problems.

Warehousing DX(Digital Transformation)
Business (Gaussy Inc.)

Photo courtesy of Mitsubishi Corporation

Warehousing and Inventory
Systems Using RFID Tags

t-Sort Robot System

Photo courtesy of Toyota Tsusho Corporation

Photo courtesy of Mitsui & Co., Ltd.

Source: Prepared by JFTC based on Annual Reports, Sustainability Report, Integrated Reports published in 2021, websites, etc.

SHOSHA Handbook 2022

31

Supporting Global Business ② ①

2-3

Overseas industrial parks businessJapanese manufacturers are expanding into fast-growing emerging economies as globalization progresses.
Establishing a production base overseas requires a variety of measures, including securing land, completing legal
procedures such as corporate registration, and hiring local employees.
The Shosha are engaged in the industrial parks business, including sales of lots for the construction of factories after
securing land with the understanding of the local side, and preparing the electricity supplies, water supplies, seweragesystems and other infrastructure necessary for companies moving into the parks. They are strong in the industrial parkbusiness overseas not only on the physical infrastructure side, but also because they can provide in-depth intangible
support based on the know-how they have accumulated through many years of experience in development andChapter 2

operations. This covers procedures for obtaining permits to set up local subsidiaries, hiring support, labor management
know-how, and updates concerning frequent legislative revisions in certain countries and regions.
They also support manufacturing in foreign countries in various ways. These include: arranging for construction
companies and construction materials for factory buildings; procurement, imports & customs clearance, andThe Shosha Are Active Worldwide Shosha Initiatives

transportation; providing raw materials, importing parts and other resources necessary for production; providing
just-in-time logistical services, including the use of their own warehouses; and product marketing and clientele
development. They also provide rental plants for small-scale businesses. Industrial parks provide support in various◦Industrial Park Map
Name
Thilawa Special
Economic Zone

Name
China-Singapore
Suzhou Industrial Park

Area (ha)Company name

629

Mitsubishi Corporation,
Marubeni Corporation,
Sumitomo Corporation

Name

Area (ha) Company name

190
Bangladesh Economic
Zones Authority(Phase1)

Sumitomo
Corporation

Area (ha)Company name26,000Mitsui & Co., Ltd.
Mitsubishi Corporation

China(Total:26,000ha)

Myanmar(Total:629ha)

Bangladesh(Total:190ha)

Name

Area (ha)Company nameToyota Techno Park India

12

Toyota Tsusho Corporation

Sri City

3,000

Toyota Tsusho Corporation

Toyota Tsusho India Autopark

22

Toyota Tsusho Corporation

TT Techno Park Management Services India

0.6

Toyota Tsusho Corporation

Sojitz-Motherson Industrial Park

115

Sojitz Corporation

ORIGINS by Mahindra World City, North Chennai 107(Phase1)

India(Total:3,975ha)Sumitomo Corporation

Techno Trends Auto Park

28

Toyota Tsusho Corporation

Model Economic Township

690

Marubeni Corporation

Thailand(Total:19,631ha)

Rojana Nongyai
Industrial Estate(Thailand)

Photo courtesy of NIPPON STEELTRADING CORPORATION

32

SHOSHA Handbook 2022

Name

Area (ha)Company nameSaha Industrial Park – Sriracha

288

Sojitz Corporation

Rojana Industrial Park

4,000

Amata City, Chonburi

4,000

NIPPON STEEL TRADINGCORPORATION
ITOCHU Corporation,
Sumitomo Corporation

Saha Industrial Park – Kabinburi

402

Sojitz Corporation

Saha Industrial Park – Lamphun

371

Sojitz Corporation

Amata City, Rayong

2,720

ITOCHU Corporation,
Sumitomo Corporation

WHA

7,824

TT Techno-Park2

Toyota Tsusho
Corporation
Toyota Tsusho
Corporation

Saha Industrial Park – Mae Sot

24

Sojitz Corporation

Cambodia(Total:430ha)

Name
Area (ha) Company namePhnom Penh Special
Sumitomo
360
Corporation
Economic Zone
Poipet Phnom Penh Special
Sumitomo
68
Corporation
Economic Zone
Techno Park Poi Pet

2

Toyota Tsusho
Corporation

other ways, including cafeterias, guesthouses, Japanese restaurants, clinics, banks, and other facilities for
employees.
The figures on the below list the industrial parks in ten Asian countries in which the seven Shosha are engaged.

◦The Main Roles of the Shosha in the Industrial Parks Business
Develop industrial parks efficiently through partnerships with local companies
Securing and preparing land

Infrastructural improvement◦F/S (Environmental Impact assessment etc.)◦Acquire land usage rights◦Acquire permits and approvals◦Transformer substations◦Sewage & water treatment plants◦Rental plants ◦Communication Facility

Manage and operate; attract companies into the industrial park; sell overseas industrial parks
Support Services◦ F/S Support: Cooperate in research, provide information◦ Support company start-ups: Investment procedures, licensing procedures for plant, company start-up◦ Operational support: Hiring and labor management, safety & security; taxation, accounting; foreign exchange controls, export/
import procedures, local procurement; industrial waste disposal

Viet Nam(Total:3,969ha)Name

Area (ha)Company name

AMATA（Vietnam）Industrial Park

700

Thang Long Industrial Park

274

Long Binh Techno Park100

ITOCHU
Corporation
Sumitomo
Corporation
SojitzCorporation

Thang Long Industrial Park Ⅱ

346

Phu My 3 Specialized Industrial Park

999

Long Duc Industrial Park

270

Thang Long Industrial Park（Vinh Phuc）

213

Phu Ann Thann Industrial Park

353

Amata City Helong Industrial Park

714(Phase1)

Philippines(Total:1,575ha)Indonesia(Total:6,162ha)Sumitomo
Corporation
NIPPON STEELTRADINGCORPORATION
SojitzCorporation
Sumitomo
Corporation
SojitzCorporation
Marubeni
Corporation

Thang Long Industrial
Park Ⅱ (Viet Nam)
Photo courtesy of Sumitomo Corporation

Name

Area (ha)Company nameLima Technology Center

620

Marubeni Corporation

First Philippine Industrial Park

448

Sumitomo Corporation

First Industrial Township

70

Sumitomo Corporation

Light Industry Science Park Ⅳ

212

Sojitz Corporatio

Hermosa Ecozone Industrial Park

162

Sojitz Corporatio

Anflo Industrial Estate

63

Sumitomo Corporation

Name

Area (ha)Company name

MM 2100

805

Marubeni Corporation

East Jakarta Industrial Park

320

Sumitomo Corporation

Suryacipta City of Industry

1,400

Sumitomo Corporation

Karawang International Industrial City

1,400

ITOCHU Corporation

PT.TT Techno Park

15

Toyota Tsusho Corporation

Greenland International Industrial Center（G.I.I.C.） 2,200 *22

SLP Karawang

Karawang International Industrial
City (Indonesia)

Sojitz Corporatio
Mitsui & Co., Ltd.

* G.I.I.C. (Deltamas City 3,200 ha site)
Area: 2,200ha

Photo courtesy of ITOCHU Corporation

Totals:Approx.

Malaysia(Total:16ha)

NameBandar Bukit Raja

Area (ha) Company name16

Mitsui & Co., Ltd.

62,580ha(ten countries）（Reference: The area of the 23 wards of Tokyo, around 62,800ha）

Note: Projects in individual countries are listed in order of establishment date; including sales agency activities and small investment project. Figures for Area areapproximate numbers; please check individual company websites for information on recent developments.
Source: Prepared by JFTC based on Annual Reports, Sustainability Report, Integrated Reports published in 2021, websites, etc.

SHOSHA Handbook 2022

33

2-4

Supporting More Comfortable Lifestyles ① ①

Infrastructure business
Demand for the development and construction of electric power, water, railway, telecommunications and otherfacilities that constitute the base of societal infrastructure is rising worldwide. Estimated at an annual $6 trillion
globally, infrastructural demand is particularly high in the developing economies, while demand for electric power
continues to increase against the background of growing populations and rising living standards. Moreover,preparations to deal with water shortages is becoming an issue as uneven regional distribution of water resources is
exacerbated by factors like population growth and climate change. Progress in urbanization characterized by risingconcentrations of population in cities as economies grow is causing serious traffic congestion, which can only be
mitigated and eliminated by improvements in transportation and logistical networks. The Shosha provide solutions to

Chapter 2

these various challenges. In particular, smart city development utilizing AI, IoT and other digital technologies to solve◦Map of Infrastructure Projects

The Shosha Are Active Worldwide Shosha Initiatives

UkraineCzech
UK

Mongolia

Spain
Uzbekistan

Urban Railway in Bangkok (Thailand)

Portugal

Photo courtesy of Marubeni Corporation
China

TurkeyAirports
Subways & urban railways
Ports

India
UAE

Egypt

Oman

Water supply & sewerage systems
Desalination

Ghana

Saudi
ArabiaQatar

AngolaBangladesh

Mozambique
Kenya

Port of Tanjung Priok International
Container Terminal (Indonesia)
Photo courtesy of Mitsui & Co., Ltd.

34

SHOSHA Handbook 2022

the problems facing cities is attracting attention as a business that can take advantage of the strengths of Shoshawith their access to a wide range of industries.
The Shosha are committed to urban development and community building with a view to enhancing quality of life
while reducing environmental impact and ensuring continued growth. Meanwhile, demand for the repair andreplacement of aging infrastructure is growing in developed countries. To meet this demand, Shosha are working
with highly skilled partners on preventive maintenance projects using Japan's superior maintenance technologies tobuild sustainable and environmentally friendly infrastructures.
In addition to business entities engaged in operations, the infrastructure business involves financial institutions thatprovide funding, public financial and insurance institutions such as the Japan Bank for International Cooperation(JBIC), and Nippon Export and Investment Insurance (NEXI), as well as manufacturers that provide equipment,
engineering and construction companies that subcontract construction work, and public utilities that purchaseservices. The Shosha pay attention to all aspects of such projects and play a role in settling confrontations between
interested parties whose vested interests may clash.
New Ulaanbaatar International Airport
Operation Project (Mongolia)
Photo courtesy of Mitsubishi Corporation

RussiaMyanmarTaiwanUSA
LaosViet Nam
Venezuela
Philippines

Korea
ThailandBrazilPalau

MexicoSingapore

Indonesia

Papua
New Guinea

Chile

Argentine

Australia

Smart City Development in Northern Hanoi (Viet Nam)
Photo courtesy of Sumitomo Corporation
Source: Prepared by JFTC based on Annual Reports, Sustainability Report, Integrated Reports published in 2021, websites, etc.

SHOSHA Handbook 2022

35

2-4

Supporting More Comfortable Lifestyles ② ①

Consumer goods industries
Consumer goods industry Since the Shosha often provide many products and services for consumers through joint
ventures and other cooperative arrangements with investees and other partners, consumers frequently buy suchproducts and services without realizing that the Shosha are involved. In fact, the Shosha are engaged in almost every
aspect of daily life, from clothing, food and dwellings, to everyday living and enjoyment, thereby contributing to therealization of more comfortable lifestyles.
Shosha provide comprehensive coverage of an extensive range of business areas, from raw material procurement
and processing to product manufacturing, distribution, and retailing. Combining the wide range of product lines,
functions and know-how available group-wide enables them to offer stable supplies of various goods and services to

Chapter 2

support comfortable lifestyles. At the same time, they listen to consumer needs, either directly or through businesses
that have contact with consumers, and work to create unique new goods and services that consumers recognize as
having value. In recent years, they have entered into collaborations with IT-related investment partners and others toanalyze consumer behavior in order to understand their increasingly diverse and sophisticated needs and create

The Shosha Are Active Worldwide Shosha Initiatives

higher value-added goods and services.

Denim Brand (RESOLUTE)

Photo courtesy of NIPPON STEEL TRADING CORPORATION

Food Service Industry (Royal Host)
Photo courtesy of Sojitz Corporation

Real Estate Business (GRAND SUITE KOJIMACHI)

Cable TV Business (Jupiter Telecommunications)Photo courtesy of Marubeni Corporation

Photo courtesy of Sumitomo Corporation

Retail and Complex Facilities(Sendai Umino-Mori Aquarium)
Photo courtesy of Mitsui & Co., Ltd.

36

SHOSHA Handbook 2022

ConvenienceStore(Family Mart)

IwataniHydrogenRefueling
Station,Ariake(Tokyo)

Photo courtesy of
ITOCHU Corporation

Photo courtesy of
Iwatani Corporation

Hotel (Nagoya
Kanko Hotel)
Photo courtesy of
Kowa Company,
Ltd.

Salmon Aquaculture Business (Norway)
Photo courtesy of Mitsubishi Corporation◦The Shosha's Principal Consumeroriented Businesses(excluding food and medical)
Information &communications

Retailing◦High-speed communications◦Satellite broadcasting, CATV
◦Information services, IT solutions◦Internet-related services, IoT◦Movie production & distribution, Anime contents◦Electricity retail◦Supermarkets
Summit, Sotetsu Rosen, Tobu Store, Mammy Mart, United Super Markets
Holdings, Life Corporation◦Convenience Stores
Seven & i Holdings, FamilyMart, Lawson◦Overseas brand, fashion goods
Fukuske, Admiral, GELANOTS, EDWIN, Feiler Japan, Max Mara Japan◦Sales of portable terminals & circuits◦Fuel sales
Nippon Mobile Hydrogen Station Services◦Online shopping
Jupiter Shop Channel, MAGASeek, BookLive!, QVC Japan

Food service◦Restaurants
KFC, Royal Holdings

Real estate◦Office buildings, Housing, Shopping centers (Retail Properties)◦Hotel, Smart cities, Mixed-use facilities

Service◦Meal services◦Online English conversation services◦Welfare and benefit services◦Car-sharing

SHOSHA Handbook 2022

37

2-4

Supporting More Comfortable Lifestyles ③ ①

Healthcare business
The unprecedented COVID-19 pandemic has drastically changed the lives and values of people around the world.
Demand for medical and healthcare-related services is expected to continue to grow going forward as the
populations of Japan and other developed countries age, while population growth and rising living standards inemerging economies increase demand for high-quality medical services and medical technology.
The Shosha recognize that demand for healthcare is expanding on a global scale and have already launchedinitiatives to meet it.
They are therefore contributing to enhancing people's quality of life through participation in a wide range of sectors,
including: medical equipment for treating cancer; support for new and generic drug development; supplies of

Chapter 2

pharmaceutical raw materials and formulations; support for establishing and managing medical institutions in Japanand overseas; provision of medical information services; drugstore management; online sales of pharmaceuticals andhealth-related products; rental wholesaling of nursing care supplies; and management of facilities for the elderly.
In recent years, Shosha have also been proactively participating in businesses that cross-fertilize ICT and

The Shosha Are Active Worldwide Shosha Initiatives

healthcare. These include online medical examinations and AI-based diagnostic support services aimed at improving
patient satisfaction while reducing the burden on healthcare professionals.
The chart on the right-hand page summarizes the principal initiatives adopted by the Shosha in the areas of
medical treatment, pharmaceuticals, and healthcare.

Mount Elizabeth Novena
Hospital under IHH(Singapore)
Photo courtesy of Mitsui & Co.,
Ltd.

Consumer Healthcare Products(OTC drugs, Life support products)
Photo courtesy of Kowa Company, Ltd.

38

SHOSHA Handbook 2022

Self-pay Rehabilitation Facility（AViC THE PHYSIO STUDIO）
Photo courtesy of Toyota Tsusho Corporation

◦Medical Treatment, Pharmaceuticals, and Healthcare-related Businesses
Medical machinery,
Equipment◦Development, manufacture◦Imports, sales & leasing

Pharmaceuticals andmaterials◦Drug design support, pharmaceuticals development◦Clinical research outsourcing business◦Pharmaceutical ingredients / intermediates / formulations /diagnostic products, cosmetic raw materials◦Generic drug manufacturing & sales◦Drug dispensing, drugstores

Hospitals◦Hospital management & management support◦Hospital outsourcing business (support for procurement ofpharmaceuticals, medical equipment & materials, etc.)◦Pharmaceuticals information services◦Education & staffing services for healthcare providers◦Telemedicine business◦Regenerative medicine business

Health services◦Agency handling of reservations for medical examinations &physical check-ups, and payments◦PET (Positron Emission Tomography) business◦Telephone health consultation◦Medical treatment & healthcare publications◦Welfare & health support services◦Health care consultation services, health management support
services◦Managed Care Business** Managed care is a system for providing medical care that has spread to countries with relatively undeveloped publichealthcare systems. Under this scheme, healthcare services are provided through a tripartite collaboration among
companies/private insurance companies, TPA services, and medical providers.

Nursing care & careservices for seniors◦Welfare product supplies◦Home-based care services◦Wholesaling and rental wholesaling of nursing care supplies◦Non-insurance rehabilitation services
Source: Prepared by JFTC based on Annual Reports, Sustainability Report, Integrated Reports published in 2021, websites, etc.

Beauty Care Products

API Laboratory

Photo courtesy of NAGASE & CO., LTD.

Photo courtesy of Sumitomo Corporation

SHOSHA Handbook 2022

39

2-5

Create New Value

Digital and next generation technology business
The impact of digitization and the development of next-generation technologies is so great that they are
fundamentally changing the way traditional business models work in all industries. Digital transformation (DX) has
been accelerating since the COVID-19 pandemic began in 2020. Shosha have connections across various regions,industries and people, and by combining the knowledge gained through their businesses with digital technologies(IoT, AI, XR, etc.), they can achieve DX, thereby not only reducing costs and improving efficiency but also evolving
existing businesses and creating new value.
Shosha also identify promising future businesses on a daily basis as they seek to establish key next-generation
sources of earnings. By focusing on Mobility as a Service (MaaS), for example, they have begun to provide mobility

Chapter 2

services that embrace the transition from internal combustion engine vehicles to electric vehicles (EV, PHEV, HEV) as
well as the shift in demand to other forms of use (such as rentals) without ownership. They are also working to makelife more convenient for urban residents by promoting the use of MaaS in smart city development. In the area of
logistics, they are raising efficiency and reducing labor through the introduction of RFID-based tracking systems and

The Shosha Are Active Worldwide Shosha Initiatives

other measures (see P.30-31, Chapter 2.2-3). Through collaboration with venture companies with innovativetechnologies and business models in countries and regions around the world, they actively invest in LOHC* and othernext-generation technologies that contribute to the realization of a carbon-neutral society and provide solutions tosocial issues. They are also expanding into new areas such as the space business.
* Liquid Organic Hydrogen Carriers (LOHC):
A technology that facilitates the storage and transport of methylcyclohexane (MCH), which has a volume approximately 1/500th hydrogen gas and is produced throughcatalysis of hydrogen gas with the organic solvent toluene.

BSD Urban Development Project (Indonesia)
Photo courtesy of Mitsubishi Corporation

A New AI Technology to Assess Tuna Quality(TUNA SCOPE)
Photo courtesy of Sojitz Corporation

Sales Support of Electric Bus Developed by CaetanoBus(Portugal)

GHG Emission Calculation and Visualization Cloud Service(Zeroboard)

Photo courtesy of Mitsui & Co., Ltd.

Photo courtesy of Toyota Tsusho Corporation

40

SHOSHA Handbook 2022

◦Hydrogen Supply Chain for Decarbonization

LOHC

Converting hydrogen to MCH (methylcyclohexane) reduces
its volume to about 1/500th the volume of hydrogen, facilitatinghydrogen storage and transport. MCH is a stable liquid at room
temperature and pressure, permitting safer, easier long-term
storage and transportation of large volumes of hydrogen.
Shosha are working with partners to develop a practicalinternational liquefied hydrogen supply chain.

Methylcyclohexane(MCH)(Liquid Organic
Hydrogen
Carriers)

Transportation

Storage
H2

H2
Storage

Hydrogenation

Hydrogenation
TolueneLiquefied Hydrogen Carrier（the Suiso Frontier）

Transportation

Photo courtesy of Iwatani Corporation ⓒHySTRA◦Food Supply Chain DX

RetailLosses from
Logistics Costs

Overproduction
to Avoid
Opportunities
LossesStock Intake
Based onAnticipated Large
Orders from
Retailers

Production
volumeDelivery ShippingTimevolumeRetailers
Stock intake
Based onAnticipated Sales

Sales
volumeOperations datasuch as orders
received and placed

External

Food
Wholesalers

Operations datasuch as orders
received and placed

Wholesale

Food
Manufacturers

Effects

Overview of Automatic Ordering Model

Unnecessary inventories had been piled up

Previous throughout the entire supply chain

Weather/
Calendar data

Use a Single System to Analyze all
Data. Forecast Demand and Supply
Balance to Prevent Excess Inventory
and Shortages.

Machinelearning
model
AI

Manufacturer
A

Recommended
order quantity Ordering
per product Systemproduct Recommended
order quantity
A
1,000
B
2,400
C
1,258
D
854

B

C

Automation of Ordering Process

Inventory
Reduction
Streamlined
Ordering
Operations
Eliminate
Waste
Throughout
Industry andSolve Food
Loss

Gathering Data from all Distribution Channels

Illustrative
Image of
Flying Air
Mobility
Vehiclesin a CityBook
introduction

Digital New Era andShoshaThe status andprospects of digitalutilization in the
Shosha industry arepresented

Photo courtesyof Sumitomo
Corporation

Author :Japan Foreign
Trade Council, Inc.
Special ResearchCommittee on"Digital New Era
and Shosha"
Supervision : Morikawa Hiroyuki,
Professor,
Graduate Schoolof Engineering,Tokyo University.
Publisher : KYURYUDO ART
PUBLISHING
CO.,LTD.
https://www.jftc.or.jp/publications/assets/pdf/digital_
shosha.pdf

Maternal and Child Health Handbook App Service (Indonesia)
Photo courtesy of Marubeni Corporation
Source: Prepared by JFTC based on Annual Reports, Sustainability Report, Integrated Reports published in 2021, websites, etc.

SHOSHA Handbook 2022

41

2-6

Enriching People and Society

Promote diversity and flexible work style
Many Shosha employees are from diverse backgrounds in terms of nationality, gender and values. The Shosha
therefore endeavor to create corporate cultures and work environments that promote diversity and inclusion as well
as flexible and productive work styles to enable employees to maximize their individuality and capabilities inrewarding work. In addition to enhancing personal happiness, these initiatives improve services to customers bymaking employees feel more fulfilled in their jobs, leading in turn to better corporate performance. For this reason,
the Shosha offer wide-ranging support in connection with work styles.
In addition to supporting the advancement of women in the workplace, they have in recent years been striving tocreate environments where all employees can work easily and with a sense of security. These endeavors include

Chapter 2

support for employees balancing work with childcare and nursing care, senior personnel, people with disabilities tohelp them fulfil their capabilities to the maximum, employees of many nationalities, and members of the LGBTQ*
community. The Shosha are engaged in employee education and have set up consultation services with a view topreventing power harassment and sexual harassment (including detrimental treatment and harassment of employees

The Shosha Are Active Worldwide Shosha Initiatives

who belong to sexual minorities) in the workplace.
* LGBTQ is an abbreviation of L = Lesbian, G = Gay, B = Bisexual, T = Transgender, Q = Questioning/Queer.

◦Key Shosha Diversity and Inclusion Initiatives

42

Support for theadvancement ofwomen◦Train female leaders◦Support for overseas postings (support for balancing work and childcare overseas)◦Events to mark the United Nations International Women's Day (March 8)◦Acquisition of Nadeshiko Brand / Semi-Nadeshiko Brand Certification from Japan's
Ministry of Economy, Trade and Industry

Support forbalancing workand childcare◦Paid leave for childcare (Parental Leave for School Activities)◦Pre-leave orientation (attended by the employee and supervisor)◦Provide childcare facilities (nurseries, daycare for sick children) and after-school
childcare services◦Create and distribute Childcare Support Handbook◦Childcare Consultation Services◦Acquisition of Platinum Kurumin Certification / Kurumin Certification / Eruboshi
Certification from Japan's Ministry of Health, Labour and Welfare

Support forbalancing workand nursing care

◦Paid leave for nursing care◦Create and distribute Handbook for Supporting Work and Nursing Care Balance◦Nursing care consultation services

Support for seniorpersonnel◦Support for career development through training programs and individual interviews◦Reemployment contract scheme◦Reemployment support services (collect job vacancy information and match
applicants to jobs)

Support for people
with disabilities◦Support for expanding employment opportunities (e.g. provide opportunities forpeople with disabilities to work together with employees in the same workplace
according to their capabilities)◦Seminars on promoting hiring of people with disabilities◦Sports support for people with disabilities

Support for activities
of foreign employees◦Head office training (e.g. dialog between locally hired staff and senior management)◦Improve career paths for regular employees at head office

Establish workplaces
where all employees
can work comfortably◦Seminars to promote understanding◦Establish guidelines, clarify compliance policies, and employment regulations◦Provision of multi-purpose restrooms

SHOSHA Handbook 2022

Shosha's CSR Activities
The Shosha strive to realize a sustainable society by resolving various social problems through their activities (seeP.18-19 Chapter 2.1).
At the same time, they actively promote CSR activities as individual companies, supporting volunteer activities by
their executives and employees.

❶ Social Welfare & Reconstruction Support
In addition to supporting the disabled and welfare activities, they
cooperate in donating school uniforms, school supplies, and school lunches
for children in developing countries. In the area of reconstruction support,
Shosha continue to contribute aid for reconstruction assistance activities indisaster-hit countries and regions around the world. They also support
industrial recovery and job creation in affected areas, and other activities tomeet their needs.

"DREAM AS ONE." Project in Supportof Parasports
Photo courtesy of Mitsubishi Corporation❷ Global Environment
In addition to cleanup activities on beaches and in towns, they are involved
in reforestation and management activities in forests and tropical rainforests,
and conservation projects in connection with coral reefs, and endangered
species such as sea turtles. They work with NPOs, universities and otherresearch institutions that contribute to solving global environmental
problems, supporting their activities and research by establishingenvironmental funds and providing financial assistance.

Mangrove Planting
Photo courtesy of ITOCHU Corporation❸ Culture & Arts
They support educational activities and cross-cultural personal exchanges
designed to foster the next generation of internationally minded individuals
who will be responsible for the development of a sustainable society. In
addition to providing educational support through various scholarship funds
and partnerships with foundations and NGOs, donating school buildings,
donating books to educational institutions and libraries, and organizing
courses and training programs at universities around the world, they have

Cultural activities support
Photo courtesy of Hanwa Co., Ltd.

established foundations in Japan for educational purposes.

❹ Education and International Exchange
Shosha are also committed to supporting cultural and artistic activities. In
Japan, for example, they sponsor awards for musical competitions andsymphony orchestra concerts, run career support programs for artists,
support sports events and the athletes, manage museums and art galleries,
and display and lend out paintings and costumes.

Children's Library Subsidy Program
Photo courtesy of ITOCHU Corporation, ITOCHUFoundation

Mitsui SASUGAKU Academy
Photo courtesy of Mitsui & Co., Ltd.

Sojitz Foundation
Photo courtesy of Sojitz Corporatio

Marubeni Laos Scholarship Program(Awarding Ceremony)
Photo courtesy of Marubeni Corporation

SHOSHA Handbook 2022

43

1Japan Foreign Trade Council, Inc. (JFTC)❶ About JFTC
The Japan Foreign Trade Council Inc. (JFTC) is a trade organization made up of Shosha and tradeassociations. It was established to contribute to the prosperity of the Japanese economy and thedevelopment of the international economic community.

Regular Members(from Shosha and trade associations)

40 Companies/20 Associations
57 Companies/28 Associations

Associate Members(from trade-related companies and associations such as manufacturing, financial, shipping)

145

Total

As of April 1, 2022 (see P.50-51 Appendix 1)❷ Brief History
JFTC was established through the merger of four trade promotion associations as a comprehensive trade-related
economic organization shortly after the end of WWII in June 1947. The objective was to promote the prosperity of the

Chapter 3

Japanese economy through the healthy development of trade, which had yet to resume at the time. Since then, JFTC

What JFTC Does

appreciation, and the GFC (global financial crisis) triggered by the collapse of Lehman Brothers.

has consistently taken a leading role in trade promotion and has worked to formulate and implement opinions onimportant issues facing the trade industry in the midst of major changes in the domestic and international
environment. These included the transition to a floating exchange rate system, the oil crises, trade friction, the yen's
In June 1986, JFTC was reorganized into an association consisting primarily of trading firms and trade associations
in order to respond more quickly and flexibly to industry issues. In April 2012, JFTC responded to the reform of public
interest incorporated associations by changing status from an incorporated association to a general incorporated
association. This gave it greater freedom to make proposals and requests.

❸ Principal Activities⑴ Government Relations ～Lobbying for Proposals and Requests
JFTC collects opinions from within the industry on the various issues it faces with a view to maintaining anddeveloping a free and fair trade and investment environment. We also aim to create the systems and conditions
necessary for free and sustainable corporate activities. We are proactive in making proposals and requests togovernment ministries, agencies and related organizations, working assiduously to ensure we are realized throughactive involvement in international standardization, strengthening our influence in international organizations, andcooperating with related groups (see P.52-55 Appendix 2, World Economy and Trade Timeline).

⑵ Member Relations ～Promoting Communications and Information Sharing
JFTC supports the efforts of member companies by collecting and providing members with information necessary
for Shosha activities and ensuring that it is shared among members. This information covers domestic and foreign
government policies and measures that significantly impact business, domestic and international conditions,
economic trends, and analyses of management issues by government ministries, related agencies and otherorganizations, and experts.

⑶ Public Relations ～Spreading Understanding of Shosha Functions and Activities plus CSR
Activities
JFTC endeavors to ensure that stakeholders inside and outside Japan can easily understand the history, current
status, and future of the Shosha, a uniquely Japanese business model. Its broad-ranging efforts to promote the44

SHOSHA Handbook 2022

significance of its activities aim to encourage greater participation by existing members and attract new members.
More specifically, it is expanding its public relations activities by enhancing its information dissemination capabilities,
revamping its website and digitizing its publications. In addition, it is further strengthening its ties with ABIC (seep.49, Chapter 3.3) in line with the government's "Designing 100-year Life Society" by the government.

⑷ Strengthening Responses to New Challenges Facing the Shosha
JTFC is strengthening its responses to newly arising common issues that are difficult to address individually within
its existing committee framework. It has therefore adopted cross-committee initiatives to deal with such matters as
economic security, business and human rights, digital transformation, SDGs, and the greening of the environment.

◦Committees
JFTC has established 17 standing committees to encourage information sharing and exchanges of opinions among
members on the important issues they face. The latest policy-related information shared at these forums helps
members develop more substantial proposals and requests.

▪General Affairs Committee▪Public Relations Committee▪Legal Committee▪Global Environment
Committee▪Finance Committee▪Accounting & Tax Committee▪Logistics& Distribution
Committee▪International Market
Committee▪Trade Trend ResearchCommittee*▪Security Trade Control
Committee▪Trade Insurance Committee▪Economic Cooperation
Committee▪Human Resource Committee▪Information & Communication
System Committee▪Social Contribution & ABIC
Committee▪Sustainability Promotion
Committee▪Internal Control Committee
Total 17

*The Outlook for Japan’s Trade Balance and Current Account for the following fiscal year is published annually in December◦Principal Functions

Government
RelationsExchange opinions withgovernment officials, andlobby for the implementationof proposals
and requests
Regular Press Conferences by Chairman KOKUBU
FumiyaMemberRelations

Kasumigaseki Common Gate West
Tower

KEY
FUNCTIONS

Promote the disseminationand sharing of information
with members

PublicRelations

Spread understanding of
Shosha functions andactivities,
and CSR activities

SHOSHA Handbook 2022

45

In 1973, JFTC drew up the Sogo-Shosha Code of Conduct
in response to the various problems that arose during
Japan’s rapid economic growth. JFTC has since revised theColumn7

Environmental Code of Conduct in 2002, revising it as the
Shosha's Corporate Environmental Code of Conduct in 2010.
Climate change has had an increasingly serious global

Chapter 3

What JFTC Does

Shosha's Corporate Codes of Conduct and Vision

Code and renamed it the Shosha's Corporate Code of

impact in recent years, leading to the adoption of the Paris

Conduct after giving serious consideration to the opinions ofAgreement and various other international initiatives. In

society concerning Shosha activities. Its efforts to evolve the2020, JFTC drew up Developing a Long-term Vision for

Code include clarifying the Shosha's corporate social

Climate Change Measures that looks ahead to creating a

responsibilities and principles of conduct, and adapting tocarbon-neutral society by 2050.

changes in the times and the demands of society. The Code

Recognizing that realizing a sustainable society is one ofis also the cornerstone of the action guidelines drawn up by

our responsibilities, JFTC supports expanding international

individual member companies.

activities aimed at achieving this goal. We believe that

The Management Philosophy described in the Shosha's

member companies should contribute to the realization of a

Corporate Code of Conduct includes the resolution of global

sustainable society by accurately grasping changing social

environmental issues. In line with this spirit, JFTC wasand economic demands and continuously working on themamong the first organizations to address global

from a medium- to long-term perspective. We encourage ourenvironmental issues by establishing a Corporate

members to adhere to this approach.

Shosha's Corporate Environmental Code of Conduct
The Japan Foreign Trade Council, Inc. (JFTC) established the
Corporate Environmental Code of Conduct, based on the spirit of
its broader "Shosha's Corporate Code of Conduct." In this code of
conduct the due consideration to the conservation of the global
environment is addressed in the "Management Philosophy."
The ongoing globalization of business activities, developments
in information technology, and the spread of market-based
economies are bringing great changes to the social and economic
environment in which corporations operate. At the same time thesupply of energy and environmental problems are also becoming
issues of global concern. As a result there is growing public
expectations that businesses act with greater social responsibility(so-called Corporate Social Responsibility or CSR).
In view of these circumstances, we herewith revise the
Corporate Environmental Code of Conduct into the new Shosha's
Corporate Environmental Code of Conduct.

1.Our Philosophy
As in the cases of global warming and the biodiversity crisis,
environmental problems are of an increasingly global characterand range from global issues that threaten human wellbeing toregional problems such as waste disposal. It is increasingly
important to respond to each problem adequately.
We widely contribute to society by striving to realize “sustainable
development” aiming at the conservation of the sound global
environment and the balanced development of the international
community.

2.Guiding Principles
We provide various resources, goods, and services, and operate
relevant projects and investments domestically and internationally.
In conducting these activities, we decide to follow these guiding
principles to realize our philosophy.

Management Philosophy（1）
We shall understand and recognize the importance of

1st version established: February 14, 2002
2nd version revised: June 16, 2010environmental problems and strive to manage our corporations bybalancing economic development and global environmental
conservation.

(2) Compliance to Environment Related Laws andRegulations
In addition to complying with the environment related laws andregulations in our respective regional areas of operation, we shallcomply with international rules and regulations.

(3) Establishment of Environmental Management
Systems
By utilizing environmental management systems, such as ISO
14001, we shall strive to establish environmental management
systems that include affiliates in order to prevent and accurately
address environmental problems.

(4) Contribution to the Creation of a Low Carbon
Society
Based on the recognition that the creation of a low carbon
society is a global urgent issue, we shall engage actively to reducegreenhouse gas emissions globally.

(5) Contribution to the Creation of a Recycling-BasedSociety
Based on the recognition that materials are finite, we shallengage actively to reduce the amount of waste produced, topromote recycling, and to utilize the resources effectively.

Consideration of Biodiversity（6）
Based on the recognition that biodiversity is an important
foundation for a sustainable society, we shall conduct ourbusinesses in the considerate manner for biodiversity.

Contribution to Society（7）
By taking advantage of Shosha's distinctive corporate forms, weshall promote business operations that conserve the environmentor reduce environmental burdens, as well as supporting andpromoting activities which contribute to the resolution ofenvironmental problems.

Developing a Long-term Vision for Climate Change Measures
To create a carbon-neutral society, the JFTC aims to effectively
utilize its links with other industries and organizations, cooperate
in implementing their long-term visions, and contribute toachieving the long-term goals for 2050 set out in the Paris
Agreement. Based on this vision, JFTC member companies will
position the investigation and implementation of measures tomitigate and adapt to climate change as key business issues and46

SHOSHA Handbook 2022

March 25, 2002

strive to generate new businesses and solutions.
We have flexibly evolved our businesses according to changing
times and diverse needs. Shosha, which operate worldwide andconduct business in cooperation with various players in a wide
range of industries, are able to fully exercise their capabilities incontributing to solutions for the global challenge of climatechange.

Shosha's Corporate Code of Conduct

1st version established: May 10, 1973
3rd version revised: June 16, 2005

2nd version revised: July 8, 1999
4th version revised: March 22, 2018

Foreword

Section 3 Governance and Crisis Management

Since the establishment of the original "Sogo-Shosha's Code of
Conduct" in 1973 we have consistently taken heed of the various
opinions voiced regarding the activities of Shosha and, in order to clarify
our social responsibilities and principles of conduct as corporations,have developed this Code of Conduct over time by implementing
revisions in response to changes in the global situation and social
expectations.
The business operations of Shosha encompass all the industrial
sectors of the world. We act upon the firm belief that the realization of asustainable society is both our responsibility and the essential foundation
upon which our corporate activities must rest. Today, the international
expansion of initiatives designed to realize a sustainable society inaccordance with the United Nations Sustainable Development Goals
adds even further importance to the social mission of Shosha while atthe same time opening up new and potentially significant opportunities
for business development.
As Shosha, we must maintain a constant awareness of these socialchanges and proactively transform our own management practices. By
fulfilling our social responsibilities through the implementation of
information disclosure and compliance with relevant laws andinternational standards, we must fully apply our capabilities as Shosha
by combining mid to long term perspectives with a clear understandingof evolving social and economic demands in order to contribute to therealization of a sustainable society.
We have produced this Code of Conduct in order to encourage JFTC
member firms to live up to their social responsibilities, evaluate their own
behavior as responsible corporations, and assist them in pursuing theirown initiatives.

As Shosha, in recognition of our responsibilities to society, we must
conduct our business in accordance with all relevant laws andregulations, show due respect for international standards and social
conventions, and stress information disclosure in our efforts to maintaintransparent management practices. In addition, we must also implement
and maintain crisis management systems designed to meet the various
threats facing both civil society and corporate activity.
1. In addition to legal compliance in our respective regional areas ofoperation, we must abide by both the letter and the spirit ofinternational rules and regulations and conduct ourselves in a sociallyconscientious manner. Furthermore, we must manage our businessactivities in accordance with the understanding that free and faircompetition is fundamental for the functioning of market economies,
engage in proper transactions, responsible procurement and otherappropriate business practices, and maintain open and fair relations
with political parties and governments.
2. We must build systems to promote effective corporate decisionmaking, strengthen our internal audit functions, and constantly
monitor the legality of decisions made within our organizations.
3. We must strive to achieve transparency through the appropriate andtimely disclosure of corporate information.
4. We must promote crisis management and information security inpreparedness for the eventuality of acts of terror, cyber-attacks,
natural disasters and other crises.

Section 1 Management Philosophy
As Shosha, we must constantly be aware of our role andresponsibilities towards society and, while balancing environmental,social and economic considerations, manage our business activities froma long-term perspective in order to contribute to the realization ofsustainable economic growth through business.
1. We must actively engage in communication with our shareholders,business partners, consumers, employees, local communities andother stakeholders and manage our businesses in such a way that
responds to both their expectations and consistently achieves thecreation of new value.
2. Executive management must lead by example in their efforts to create
responsible businesses as defined by the evolving demands of theday.
3. We must engage in business in such a manner that the human rights
of all people are respected.
4. We must conduct our businesses with due consideration to thepreservation of a sound global environment and social sustainability,
and actively engage in the resolution of global, environmental andsocial issues.

Section 2 Functions and Areas of Activity
As Shosha, while giving due consideration to the attainment of theobjectives of the United Nations Sustainable Development Goals, wemust strive to accurately perceive evolving environmental, social andeconomic trends, and be responsive to the attendant social demands in
a comprehensive manner.
1. By collecting and disseminating information on a global scale andmeeting the diversifying needs of our clients and markets, we must
provide resources, goods, and services to enrich society byimplementing innovation.
2. By discovering new opportunities for business throughout the world,and by developing these opportunities into sources of value forsociety, we must strive to contribute to the resolution of social
problems and the realization of sustainable economic growth.
3. In the course of our global operations we must contribute to theachievement of balanced global development and regional prosperityby the promotion of free trade and investment and constructive
partnership with national governments, international bodies, and otherrelevant organizations and corporations.

Section 4 Social Participation and the Promotion of Trust
As Shosha, we must strive to create relationships of mutual trust both
domestically and internationally and to actively participate in andcontribute to society as good corporate citizens.
1. We must show respect for the cultures, customs and languages ofother countries and regions, and strive to actively participate inactivities aimed at regional development through a process ofprivate-sector diplomacy.
2. We must strive to promote relationships of mutual trust with all our
stakeholders including shareholders, business partners, consumers,
employees, and local communities by actively disclosing information
regarding our corporate operations and by cooperating in regional
activities which contribute to the achievement of secure and enriched
standards of living.
3. We will not deal with any organizations influenced by or comprised oforganized crime that may operate in the communities in which we dobusiness.

Section 5 Reform of Work Practices and Creation of
Rewarding Work Environments
As Shosha, we will strive to provide our employees with a rich andrewarding work environment, to respect the diversity, character andindividuality of our employees, and to promote corporate cultures inwhich each individual's talents and creativity may be fully developed.
1. We must create and maintain work environments for our employeeswith due consideration for health and safety.
2. We must respect the human rights of our employees, promote equal
opportunities among them, and oppose any discriminatory
employment practices or treatment.
3. We must respect the diversity and individuality of our employees andactively support their skill and career development.

Section 6 Role of Executive Management in the
Implementation of this Code of Conduct
As Shosha, we recognize that it is the role of executive management
to realize the spirit of this Code of Conduct, to lead by example inenhancing awareness of it within their respective corporate organizations
including subsidiaries and affiliates, and to promote the understanding of
the spirit of this Code of Conduct and its application throughout their
supply chains. In addition, in the event of a violation of the spirit of thisCode of Conduct, executive management should discharge their
responsibilities by taking the initiative in resolving the problem,
investigating its causes and implementing measures to prevent its
recurrence.

Note: The original Japanese language version of this document is the official version used by the JFTC and its members. This document is an English languagetranslation of the Japanese language original and has been prepared as a public service.

SHOSHA Handbook 2022

47

2

JFTC Kids☆ ☆ Site

The JFTC Kids☆Site provides an easy-to-understand introduction to Japanese trade and the activities of the
Shosha. The website is widely used by both children and adults. It includes extensive information on the history of
trade in Japan, the characteristics of trading today, the role of the Shosha, and their CSR activities.

Chapter 3

What JFTC DoesYou can enjoy
researching theactivities of trade
and trading
companies.

Various episodes
related to trade are
introduced in video
clips.
Shouma-kun & Osho-chan

Check JFTC Kids☆Site!
(Japanese only)
https://www.jftc.or.jp/kids/

48

SHOSHA Handbook 2022

3

Action for a Better International Community (ABIC)

About ABIC
ABIC's objective is to contribute to global society by utilizing human resources with know-how and a wealth ofexperience accumulated through many years of involvement with Shosha activities and other international
businesses.
Numerous experts have registered with ABIC since its founding. They include people with extensive businessexperience in Japan and overseas, as well as a thorough knowledge of the politics, economics, cultures, andlanguages of the countries where they have been stationed. Their wide-ranging knowledge, experience, and skills
enable ABIC to expand activities that contribute to society at large through cooperation and exchange activities.
These include providing personnel support to governments, municipalities, private companies, organizations, groups,
schools, and other educational institutions at the private sector level.

Membership

Establishment and History

Registered members 2,997 (as of March 2022)◦Shosha alumni: 68%◦Alumni of financial, insurance andmanufacturing companies, and publicagencies: 32%◦Members with overseas posting experience:
85% (Approx. 150 countries and regions)◦Members with multilingual abilities: 47%(35 countries and regions)

April 2000 JFTC establishes ABIC as an internal organization. Alumni and former employees of Shosha
and other companies with international business experience and know-how register withABIC and begin recommending and introducing human resources to meet various domestic
and international needs.
May 2001 Launched as a non-profit organization (NPO).
July 2002 Acquired a paid job-placement service license from Japan's Ministry of Health, Labor andWelfare.
April 2020 20th anniversary of founding.

Principal Activities
Aggregate number of people involved in activities in FY2021:
Cooperation with government agencies◦Recommend personnel for such positions as JICA
specialists and senior overseas volunteers, JETRO
specialists, Ministry of Foreign Affairs consularadvisors and overseas diplomatic mission staff,
SME advisors, and various training organizations.

1,608 (cumulative total since founding: 31,251)

Support and cooperation in connection witheducation

Project outsourcing, etc.

◦ Undertake outsourced lectures, dispatch andintroduce lecturers for university and adultcourses, etc.
◦Dispatch teachers to elementary, junior highand senior high schools for visiting classes ininternational understanding, train teachers andstaff, provide Japanese language education andlifestyle guidance for foreign children living inJapan◦Support Japanese language education fortechnical internees, etc.
◦Industry-academia collaborative projects such as
international high school exchanges◦ Conclude outsourcing contracts and cooperate inprojects promoted by government agencies andcompanies

Arrange support and exchanges for international
students studying in Japan, etc.

Cooperate with NGOs, NPOs, internationalorganizations, etc.
◦ Support business promotion by introducing local
office managers, coordinators, senior managers
and advisors in charge of administration indomestic offices, etc.

Cooperate with local governments, support small
and medium enterprises (SMEs)◦ Support efforts to attract domestic and foreigncompanies, promote local industries, promote
product exports, cooperate in support for SMEs
(develop sales channels, support overseas
expansion and internationalization, introduce
management and administrative personnel,translation, interpretation, etc.), introduce lecturers
for training seminars◦ Direct support for SMEs

Support foreign companies doing business withJapan, etc.

◦ Japanese language instruction, introduction to
Japanese culture, lifestyle support, and exchange
events at the Tokyo International Exchange Centerand Hyogo International House◦Offer Japanese language teacher training courses◦Japanese language guidance for university staff
and family members, etc. and foreign nationals(regular member companies)

Japanese
Language Plaza(Online Classes
for International
Students）

Training(Lecture in
Pakistan)

Cooperate with international events. etc.
◦ Language volunteers at international sporting
events, international expositions, etc.

Other activities, general recruiting, etc.

◦ Provide interpretation services for trade fairs,
business negotiations, market research, recruit
personnel to support business expansion in Japan◦Recruit personnel for domestic and overseas
offices of foreign companies and foreign
governments and institutions◦Cooperate in pre-overseas posting training for
employees of Japanese companies

Contact us to resister
as a member of ABIC
activities or to discuss
recruitment
opportunities.

Lecture in
English at a
University

Kwansei Gakuin
University
Senior HighSchoolStudents
International
Exchange
Event

https://www.abic.or.jp/

SHOSHA Handbook 2022

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Appendix

1

Regular Members of JFTC
Companies (40)

◦ITOCHU Corporation◦JFE Shoji Corporation◦Marubeni-Itochu Steel Inc.

◦SHINYEI KAISHA◦Inabata & Co., Ltd.

◦Shinsho Corporation◦Iwatani Corporation◦Smile Co., Ltd.

◦OKAYA & CO., LTD.

◦SUMITOMO CORPORATION◦KANEMATSU CORPORATION◦Seika Corporation◦KYOKUTO BOEKI KAISHA, LTD.

◦ALL NIPPON AIRWAYS TRADING CO., LTD.

◦Kowa Company, Ltd.

◦Sojitz Corporation◦CBC Co., Ltd.

◦T. CHATANI & CO., LTD.

◦JALUX Inc.

◦CHORI CO., LTD.

https://www.itochu.co.jp/ja/

https://www.jfe-shoji.co.jp/

http://www.benichu.com/

https://www.shinyei.co.jp/

https://www.inabata.co.jp/

https://www.shinsho.co.jp/

https://www.iwatani.co.jp/jpn/

https://www.smilecorp.co.jp/

https://www.okaya.co.jp/

https://www.sumitomocorp.com/ja/jp

https://www.kanematsu.co.jp/

https://www.seika.com/

https://www.anatc.com/

https://www.kbk.co.jp/ja

https://www.kowa.co.jp/index.html

https://www.sojitz.com/jp/

https://www.cbc.co.jp/

hhttps://www.chatani.co.jp/

https://www.jalux.com/

https://www.chori.co.jp/

Associations (20)◦OSAKA Foreign Trade Association◦Japan Paper Importers' Association◦Kyoto Foreign Trade Association◦Japan Machinery Center for Trade and Investment◦Kobe Foreign Trade Association◦Japan Machine Tool Importers' Association◦Japan Foreign Traders Association, INC.

◦Japan Automobile Importers Association◦Japan Chemical Exporters and Importers Association◦Japan Textiles Exporters Association

http://daiboukyou.com/

http://www.kobe-fta.or.jp/

http://www.jafta.jp/

http://www.jcta.or.jp/

50

SHOSHA Handbook 2022

http://www.jpeta.or.jp/

https://www.jmcti.org/

https://www.jmtia.gr.jp/

https://www.jaia-jp.org/

https://jteia.org/

◦TEIJIN FRONTIER CO., LTD.

◦Hanwa Co., Ltd.

◦Tokyo Boeki Holdings Corporation◦Honda Trading Corporation◦Tosho Associate Corporation◦Marubeni Corporation◦TOHO BUSSAN KAISHA, LTD.

◦MITSUI & CO., LTD.

◦Toyota Tsusho Corporation◦Mitsubishi Corporation◦NAGASE & CO., LTD.

◦MEIWA CORPORATION◦D.Nagata Co., Ltd.

◦Metal One Corporation◦NIPPON STEEL TRADING CORPORATION◦MORIMURA BROS., INC.

◦NOSAWA & CO., LTD.

◦Yagi Tsusho Limited◦Nomura Trading Co., Ltd.

◦YUASA TRADING CO., LTD.

◦The Japan Textiles Importers Association◦Cosmetics Importers Association of Japan◦Japan Ship Exporters' Association◦Japan Wine and Spirits Importers' Association◦Japan Overseas Railway System Association◦Japan Sheep Casing Importers Association◦JAPAN WATCH IMPORTERS’ ASSOCIATION◦Fukuoka Foreign Trade Association◦ THE JAPAN BANANA IMPORTERS ASSOCIATION◦The Yokohama Foreign Trade Association

https://www2.teijin-frontier.com/

http://www.tokyo-boeki.co.jp/

https://www.climbing-tosho.com/

https://www.tohob.co.jp/

https://www.toyota-tsusho.com/

https://www.nagase.co.jp/

https://www.d-nagata.co.jp/

https://www.nst.nipponsteel.com/

https://www.nosawa.co.jp/

https://www.nomuratrading.co.jp/

https://www.jtia.or.jp/

https://www.jsea.or.jp/

https://www.jorsa.or.jp/ja/

http://www.tokei.or.jp/

https://www.banana.co.jp/union/

https://www.hanwa.co.jp/

https://www.hondatrading.com/

https://www.marubeni.com/jp/

https://www.mitsui.com/jp/ja/index.html

https://www.mitsubishicorp.com/jp/ja/index.htmls

https://www.meiwa.co.jp/

https://www.mtlo.co.jp/

https://www.morimura.co.jp/

https://www.yagitsu.co.jp/ja

http://www.yuasa.co.jp/

https://www.ciaj.gr.jp/

https://youshu-yunyu.org/

http://www.jnsca.or.jp/

https://www.fukuoka-fta.or.jp/

http://www.yfta.jp/

As of April 2022(Alphabetical order)

SHOSHA Handbook 2022

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Appendix

2

The World Economy and Trade①
The World

Japan

Business Cycle

JFTC
ChairmanWorld War II ends.

1945 The United Nations is established.
The GHQ orders Japan to dissolve the big fourfamily-run conglomerates.

1946
1947

Marshall Plan: European Recovery Program
The GATT is signed.

The GHQ allows Japan to resume private trading Post-war Inflation
but with constraints.
Japan Foreign Trade Council, Inc. (JFTC) isestablished (June 25).

1948
The Coordinating Committee for Multilateral

1949 Export Controls (CoCom) is established.

The exchange rate against US dollar is fixed at¥360.

1950 The Korean War begins.

Japan resumes private trading.
The GHQ agrees in general for the Shoshas toestablish overseas branches.

1951

The JETRO is established.
San Francisco Peace Conference; The Treaty ofPeace with Japan is signed.
The Security Treaty between the US and Japanis signed.
Operation of civil aviation resumes.

1952

Japan joins the IMF and World Bank.

1953 The Korean War Armistice is signed.

Three Objectives and Four Principles for
Economic Independence: Austerity measures

1954

105 Shoshas specialized in textile go bankrupt(the post-war highest record).

The People's Republic of China is established.

The Bandung Conference: Asian-African

1955 Conference

Japan joins GATT.

1956

The systems that allow Shoshas to purchaseand hold foreign currencies and to settle netbalances between main and branch offices go
into effect.

1957

The Japanese Government establishes anexport council for trade business under the
Export Council.

1958 established.

The Ministry of International Trade and Industry(MITI) announces the outline for effective
placement of overseas locations for Shoshas.

1959 The GATT Conference is held in Tokyo.

Japan Trade Charter is adopted(November 19).

The European Economic Committee is

1960

EFTA is established.
The Dillon Round of the GATT is launched.
OPEC is formed.
The OECD is established.

The Basic Guidelines for the Liberalization ofTrade and Exchange is decided.
The Treaty of Mutual Cooperation and Security
between the US and Japan is signed.

Recession
Induced by the
Post-war Stability

NAKAJIMA
Kumakichi(1947.6-1953.4)

SpecialProcurement
Boom Brought by
the Korean War

Expansion
Period of the 3rd
Business Cycle

Contraction
Period of the 3rd
Business Cycle

INAGAKI
HeitaroExpansion
Period of the 4th
Business Cycle

1961 The Dillon Round of the GATT is concluded.

The Joint US–Japan Committee on Trade andEconomic Problems is created.

1962 The naval quarantine of Cuba

Japan-China Trade Memorandum

1963

Trade Day is designated (June 28).

1964 The Kennedy Round of the GATT is launched.

Japan accepts the obligations of Article VIII of
the IMF Agreement.
Japan joins the OECD.
New tax breaks for export promotion comeinto effect; The export income credit system isabolished.
The Tokyo Olympics

Boom Broughtby the Tokyo
Olympics

1965 American bombing of North Vietnam begins.

The Treaty on Basic Relations between Japanand the Republic of Korea is signed.

Post-olympics
Recession

52

SHOSHA Handbook 2022

(1953.4-1972.10)

The World

1966 The Cultural Revolution begins in China.

Japan

Business Cycle

JFTC
ChairmanDeficit-covering government bonds are issued
for the first time.

The Six-Day War begins.

1967 The Kennedy Round of the GATT is concluded. The capital liberalization officially begins.
The ASEAN is established.

1968 The Treaty on the Non-Proliferation of Nuclear

The OAPEC is established.

Joint Japan-US Committee on Trade andEconomic Affaires meeting in Honolulu:
Cooperation to support the dollar

1969

The 2nd stage of capital liberalization

1970

JFTC relocates head office from Bouekikaikan (Ginza) to World Trade Center Building(Hamamatsu-cho).
The Japan-US textile negotiations begin.
The 3rd stage of capital liberalization

Weapons is signed.

1971

New economic policy is announced in the US;
The Nixon ShockChina joins the UN.
Multilateral currency adjustment: Smithsonian
Agreement

The yen is revalued upward against the US dollar
to ¥308 under the Smithsonian Agreement.
The 4th stage of capital liberalization (93%)
Japan agrees to a 3-year deal to limit textile
exports to the US.

1972

The US-Japan Textile Agreement
Okinawa is returned to Japan.
Sino-Japanese relations are normalized.

1973 The 4th Arab-Israeli War begins.

100% trade liberalization is decided.
JFTC draws up the "Sogo-Shosha's Code of
Conduct" (May).
The floating exchange rate system essentiallycomes into effect: The end of Smithsonian
System.
Fact-finding survey on the largest 6 Shoshas(MITI)The Act on Emergency Measures against
Cornering and Speculative Stocking of Materials
and Products Related to Daily Life is officiallyannounced.

UK joins the EC.
The Tokyo Round of the GATT is launched.
The 1973 oil crisis

1974

Fact-finding survey on Sogo Shoshas (Japan
Fair Trade Commission)
JFTC establishes Committee on Japan-Korea
Trade Expansion and Balance.

1975 The 1st G6 Summit: Rambouillet Summit

The 2nd Fact-finding survey on Sogo Shoshas(Japan Fair Trade Commission): "Sogo Shoshas
in relation to Antitrust Policy"
JFTC sends 1st friendship delegation to People's
Republic of China.

1976

The Lockheed bribery scandals

The Vietnam War ends.

Expansion
Period of the 6th
Business Cycle

INAGAKI
Heitaro(1953.4-1972.10)

Recession
Induced by the
Nixon Shock

Boom Induced by
the Reconstructing
the JapaneseArchipelago

MIZUKAMI
Tatsuzo(1972.10-1985.5)
Oil Crisis

1977
The Sino-Japanese Peace and Friendship Treaty
is signed.
The Narita International Airport begins its
operation.

1978
1979

The 1979 energy crisis
The 5th G7 Summit in Tokyo
The Tokyo Round of the GATT is concluded.
The Soviet-Afghan War begins.

1980 The Iran–Iraq War
The Cancun Summit on International

1981 Development: The 1st North-South Summit

Douglas-Grumman scandal
Japan-US Auto Trade Talks begin.
The Foreign Exchange and Foreign Trade Act isrevised.
Japan agrees to limit Auto Trade.
International Trade Institute (ITI) is organized.

1982 The invasion of the Falkland Islands

SHOSHA Handbook 2022

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Appendix

2

The World Economy and Trade②
The WorldJapan
Korean Air Lines Flight 007 is shot down bySoviet interceptors.

1983
1984
1985

Business Cycle

The 1985 Mexico City earthquake
The Plaza Accord
The Chernobyl disaster1986 The 12th G7 Summit in Tokyo

The Uruguay Round of the GATT is launched.

Privatization of Nippon Telegraph and Telephone,and Japan Tobacco
Sharp appreciation of the yen against US dollar

1987 The Louvre Accord

1988 The Iran–Iraq War ends.

The US and Japan reach an agreement on theliberalization of beef and orange markets inJapan.

Black Monday

MIZUKAMI
Tatsuzo(1972.10-1985.5)

JFTC is reorganized from an economic
organization to a trade-industry association(June).
The US announces to impose restrictions on
Japanese imports.
The Japan National Railways is privatized anddivided into companies collectively called JRgroup.
The Revised Trade and Investment Insurance
Act comes into force.

Perestroika begins in the Soviet Union.

Yen Expensive
Recession

JFTC
Chairman

1989

The Tiananmen Square Massacre
The 1st APEC Economic Leaders' Meeting
The Berlin Wall is dismantled.

Sales tax is introduced.
The US-Japan working group on the Structural
Impediments Initiatives begin.

1990

Iraq invades Kuwait.
Germany reunifies.

Stock market plunges showing signs ofcollapsing bubble (February).
The final report of the US-Japan working groupon the Structural Impediments Initiatives

Bubble Economy

MIMURA
Yohei(1985.5-1992.5)

Coalition forces attack Iraq.

1991 The Gulf War begins.

The Soviet Union collapses.
The International Peace Cooperation Law (PKO
Law) is enacted.

1992
The 19th G7 Summit in Tokyo

1993 The EU single market is created.

Maastricht Treaty enters into force.

1994

The Japanese Government eases regulations on
94 items.

1995 The WTO is established.

The Great Hanshin earthquake
US-Japan Automotive Agreement

1996

US-Japan Semiconductor Agreement

1997

Sales tax is raised to 5%.
The 50th Anniversary of JFTC
The Bank of Japan Act and Act on Prohibition ofPrivate Monopolization and Maintenance of Fair
Trade are revised, eliminating a ban on holding
companies.
The Guidelines for Japan-US Defense
Cooperation are approved.
The Conference of Parties to the Framework
Convention on Climate Change in Kyoto

Transfer of sovereignty over Hong Kong fromthe UK to the People's Republic of China
The Asian currency crisis

Underground tests of nuclear weapons by

1998 India and Pakistan

The European Monetary Union begins.

1999 The NATO bombing of Yugoslavia in the
Kosovo War

The 26th G8 Summit in Okinawa and Kyushu

2000 The Inter-Korean Summit in Pyongyang
2001

54

EJIRI
Koichiro

The CoCom is disbanded.
The yen rises above 100 yen to US dollar.
The Uruguay Round of the GATT is concluded.

The Act on Emergency Measures for the
Revitalization of the Financial Functions isenacted.
The Nagano Winter Olympics

Post-bubble
Recession

MUROFUSHI
Minoru(1996.5-2000.5)

JFTC publishes the revised "Shosha's Corporate
Code of Conduct" (July).
JFTC sets up the Action for a Better
International Community (ABIC).

The Terrorist Attacks in the US (September 11). ABIC is approved as NPO.
The WTO Doha Development Round begins.
SFDF are deployed to Indian Ocean to support
China joins the WTO.
the US.

SHOSHA Handbook 2022

(1992.5-1996.5)

MIYAHARA
Kenji(2000.5-2004.5)

The World

Japan

2002

Euro banknotes and coins come into
circulation.
North Korea declares its development of
nuclear weapons.

JFTC draws up the "Shosha's Corporate
Environmental Code of Conduct" (February).
The 1st Japan-North Korea Summit meeting in
Pyongyang

2003

North Korea announces its withdrawal fromthe NPT.
The Iraq War begins.

The Act on Special Measures concerning
Humanitarian Relief and Reconstruction Workand Security Assistance in Iraq is enacted forenabling JSDF to be deployed.

Repeated suicide bombing attacks in Iraq etc.

2004 EU expands to 25 countries including 10 new
countries from Eastern Europe.

The renminbi appreciates against USD by 2%.

2005 The 1st East Asia Summit (16 countries)

JSDF are deployed to Samawah in Iraq.
JSDF's joining to the coalition forces is decided.
The Kyoto Protocol enters into force.
The 2005 World Exposition in Aichi: Love theEarth Expo
JFTC revises the "Shosha's Corporate Code of
Conduct" (June).

2006 foreign exchange reserves.

The end of the BOJ's zero-rate policy (0% to
0.25%)
The announcement is made that the past
longest expansion period during the 6thbusiness cycle is surpassed.

2007 The US subprime mortgage crisis (August)The 60th Anniversary of JFTC
Postal privatization

China becomes the world's largest holder of

2008

The 34th G8 Summit at Toyako in Hokkaido
Lehman Shock (September)
Japan Air Self-Defense Force withdraws fromThe crude oil price soars (above $100/barrel at Iraq after 5-year deployment.
one point).

2009

The three-party coalition government of
Democratic Party of Japan, Social Democratic
Party, and the People's New Party is set up.

2010 Financial crisis in Greece

The 10th Anniversary of ABIC2011

US completes withdrawal of American militaryforces from Iraq.
Documents released from the negotiating
chairs of WTO Doha round.

The Great East Japan Earthquake (March 11)
Japan records first trade deficit in 31 years.

2012 Russia joins the WTO.

JFTC becomes general incorporated
association.
LDP & NKP form coalition government.

2013 EU enlargement (28 member states)

Japan formally declares to join TPP (March).
Diet passes the act on the Protection ofSpecially Designated Secrets (SDS).

2014

Japan raises sales tax from 5% to 8% (April).

Business Cycle

JFTC
Chairman

MIYAHARA
Kenji(2000.5-2004.5)

Expansion
Period in the 14th
Business Cycle

SASAKI
Mikio(2004.5-2008.5)

Global Economic
CrisisKATSUMATA
Nobuo(2008.5-2010.5)

Expansion
Period in the 15th
Business Cycle

European crisis

UTSUDA
Shoei(2010.5-2014.5)

US-Cuba restores diplomatic relations.

2015 The 70th Anniversary of WWII

The 42th G7 Summit: Ise-Shima Summit (May)2016 BREXIT referendum (UK, June)

Paris Agreement enters into force.

Japan signs TPP (February).
2016 Kumamoto Earthquake (April 14)
Abenomics
Economy2017

Donald Trump is inaugurated as the 45th
President of the US.
North Korea accelerates its development of
nuclear weapons.

The 70th Anniversary of JFTC2018

The Inter-Korean Summit in Panmunjom
US announces its withdrawal from the Irannuclear deal framework (May).
US-China trade dispute has intensified.

JFTC revises the "Shosha's Corporate Code of
Conduct"(March).
The Related Acts to Promote Work Style Reform
is enacted (June).
TPP11 enters into force (December).

Hong Kong protests to intensify.

2019 G20 Osaka Summit

Japan-EU EPA enters into force (February).
Japan raises consumption tax to 10%.

KOBAYASHI
Eizo(2014.5-2018.5)

NAKAMURA
Kuniharu(2018.5-2020.5)

SHOSHA Handbook 2022

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Appendix

2

The World Economy and Trade③
The WorldJapan2020 WHO declares COVID-19 a pandemic (March).

The Japan-United States Trade Agreement andJapan-United States Digital Trade Agreement
are enacted (January).

Joe Biden is inaugurated as the 46th
President of the US.
A new variant of Omicron spreads around theworld.

Japan-UK EPA issued (January).
JFTC moves its office to Kasumigaseki Common
Gate (January).
The Tokyo Olympics

UK leaves EU (January).

2021

2022 Russia invades Ukraine.

RCEP issued (January).
Economic Security Promotion Bill passed (May).

Business Cycle

JFTC
Chairman

KOBAYASHI
Ken(2020.5-2022.5)

KOKUBUFUMIYA(2022.5-)

56

SHOSHA Handbook 2022

SHOSHA Handbook 2022
First edition : March 31, 2023
Third edition (electronic version) : July 31, 2024
Publisher

Japan Foreign Trade Council, Inc.

Kasumigaseki Common Gate West Tower 20F, 3-2-1,
Kasumigaseki, Chiyoda-ku, Tokyo 100–0013, JapanTEL 03（5860）
9350
E-mail chosa@jftc.or.jp
URL https://www.jftc.or.jp
Editor/Publisher Research Group, Japan Foreign Trade Council, Inc.
CoverDesigner

KAMINAGA Aiko

Designer

YAMAGUCHI Tsutomu© Japan Foreign Trade Council, Inc.
Printed in JapanAll rights reserved, including the right to reproduce this book or portions thereof in any form whatsoever