Theresa May’s Visit to Japan & Brexit Negotations: Will arrogance hinder UK Japan Business?

for September, 2017

Theresa May’s Visit to Japan & Brexit Negotations: Will arrogance hinder UK Japan Business?

Posted on 15 September 2017 in Inter-Cultural Training, Japanese Corporate Culture, News -
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Theresa May’s visit to Japan & Brexit Negotiations: Will arrogance hinder UK Japan Business?

Theresa May’s recent visit to Japan may have been a good PR stunt but where do we stand now with Japan? The highly entertaining tea-ceremony and comments such as: “I like your dress”, “we have a good relationship” and the all-important “we will commit to a trade deal after Brexit”, were certainly reassuring but should be contextualised within the niceties often seen within Japanese negotiations. These were not false platitudes given by Abe to May, they are important parts of doing business in Japan-tatemae and relationship building- and should be read as such (reading between the lines is another important aspect of doing business with the Japanese). To assume otherwise would be arrogant, which in our current position, is not ideal. The fact is that many Japanese companies are considering something that is against all their business principles-ditching long-term business commitments to the UK- and there will be more to follow. The risk is simply too high (risk is the bottom line for all their business decisions.)

Nurturing Relationships with the Japanese

We certainly would be wise to nurture our relationship with the Japanese-they are one of our most important trading partners bringing with them high levels of job creation and long-term investment into training, education and cultural endeavours, many of which go unnoticed or unappreciated in the Western world of ‘business is business’. The simple fact is, we do business and form relationships very differently. Anyone attending the Hitachi Rail opening ceremony last year should have noticed the difference between the Japanese side’s sentiments and the British side just from listening to the speeches alone. Furthermore, the way David Cameron and George Osborne mentioned investments made into the UK from Japan at the ceremony (Nissan committed to massive investment into their Sunderland operations on that same day) with George then hotfooting it to China to tout for bidders for HS2 the very next day showed a clear contrast of our government’s mentality with the Japanese, who favour long-term relationships, loyalty and trust.

Arrogance may be our downfall

The detail-sparse and rather delusional “we are still incredibly important” flavour of Brexit negotiations mingled with a somewhat admirable British philosophy of “flying by the seat of our pants” does not in any way appeal to the Japanese. Brexit goes against the Japanese preference for long-term stability, an absolute need for details and a low-risk environment. There will also be an expectation of us meeting the obligations they would automatically expect from their investments here, which are currently neither forthcoming nor in any way deliverable. Instead, the lack of clarity and  policies based on rhetoric and arrogance currently coming from the British Government are making us look even more ‘risky’.

The UK is now a country divided by out-of-touch and in some cases quite dangerous politicians who, through a misinformed manipulation of people based in the regions who were voting against a neglect that has never been addressed rather than membership of the EU, have no real Brexit mandate from the British public-just more disillusioned people living outside of London and a negotiating charade with angry Europeans.

The fact that Downing Street were “surprised” by the demands outlined in a letter from the Japanese to the British Government regarding Brexit expectations and that Theresa May was subsequently “vexed” by the decision of the Japanese banks to leave the UK really does show a worrying level of arrogance. If we are not careful, this arrogance will stand in the way of another admirable British philosophy: our ability to “make the most out of a bad situation”. The environment we are offering now to the Japanese is not the right one. Recent comments in the press that the Japanese are being too polite to tell us don’t go far enough. They are telling us-it’s just that we’re too arrogant to listen!

For Japanese companies/executives in the UK: “Understanding why Brexit happened2

Find out more about British society and how Brexit came about by exploring Britain’s political landscape, finding out what the British people in the regions really think, why they actually voted for Brexit and understanding the different ideologies currently affecting British politics and society. We offer 1:1 Skype courses or in-house lectures on this subject aimed specifically at foreign executives in the UK or companies looking to invest here. Please contact us for further information.

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