12 than in other places due to a rigid decision-making process which is based on an internal consensus mechanism (known as ringi) and the need to perfect any product or service to a flawless level .It is also a perquisite to start the business relationship by first building trust relationships with the potential partners in Japan. This means that the decision to enter the market in Japan should be strategic in its essence and requires a thorough market research and allocation of appropriate resources. Despite of the obstacles, Japanese partners are loyal, view the relationship as a long-standing partnership, and invest resources from their side to make sure the partnership is successful.” As Hiroyuki at Bird & Bird adds: “Japanese people prefer subtle rather than direct negotiation. In large Japanese corporations, decision-making often requires multiple approvals, which can slow the process so Israeli companies should be aware that deal making can take longer than they’re used to for this reason. It’s common to prepare detailed answers to anticipated questions in advance for the approval process. As a result, proposals tend to be very detailed to proactively address potential queries.” “Israelis should note Japan’s emphasis on formal relationship-building, patience in business dealings, and strict regulatory standards, especially around data and quality assurance,” Yanay adds. Speed is something to factor into transactions and collaborations. As Hiroyuki points out: “Government filings are particularly slow to move online, and the use of fax machines and personal seals (inkan) is still common. Due to foreign exchange regulations, various types of transaction with a Japanese company such as acquiring shares in a Japanese company, lending money to a Japanese company, or making payments to a Japanese company may require government approval or reporting to the government or the Bank of Japan.” Looking Ahead: Key Events to Build Relationships As both nations look to the future, multiple events offer the chance to deepen relationships. Gilad: “Japan will be hosting the international EXPO exhibition in Osaka during 2025. The Expo is a six-months long exhibition that attracts millions of visitors from around the world. The last EXPO was held in Dubai in 2020 with participation of 200 countries and more than 24 million visitors. Israel will have a national booth within the EXPO and several business and cultural activities are planned. In addition, there are a few tech
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