Japanese firms shut China plants

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

  • 4

    kwatt

    I knew 25 years ago that this kind of riots would happen in China someday. Everybody has gone to China. Now Japanese start to shut companies and factories and maybe leave there. What a idiot?

  • 12

    SamuraiBlue

    Well when the dust settles you'll find various Chinese worker out of a job due to close of shop as well as shortage of parts bought from Japan to manufacture end product shipped to US and Europe which will be a double whammy to the already suffering PRC export economy.

  • 9

    hatsoff

    Ratcheting up tensions further on Monday, Chinese state media warned Japan it could suffer another “lost decade” if trade ties soured.

    Oh how truly pathetic from China. We hate you but please keep buying our stuff and making things here. The Communist Chinese have no shame whatsoever. How embarrassing. The emperors of old China must be turning in their graves.

  • 2

    hatsoff

    And this, from the Commentary article in JT:

    China’s government has also encouraged the use of economic pressure in the dispute over Japan’s control over the East China Sea islands, called Senkaku in Japan and Diaoyu in China. China’s National Tourism Administration ordered travel companies last week to cancel tours to Japan over the weeklong National Day holiday in early October and promised to compensate any businesses for costs they could not recover, said a lawyer who saw the written order and asked not to be identified because the document is not for public use.

  • 4

    oldsanno

    Chinese Mobs Cripple Man for Driving Japanese Car.

    http://www.sankakucomplex.com/2012/09/17/chinese-mobs-cripple-man-for-driving-japanese-car/

    All Japanese companies should leave China.

  • 3

    Saul Schimek

    China must be feeling the economic Bite hard and is using japan as a distraction

  • 10

    kwatt

    I've heard that Japanese companies which already decided to leave years ago are now moving out of China slowly to more favorable countries such as India, Thailand, Myanmar, Russia, Eastern Europe countries, etc. I think that more companies willingly would move out next 5 years.

  • 7

    Herve Nmn L'Eisa

    This is what happens when manufacturing is transferred to countries with unstable political systems. The ripples will likely have a global effect.

  • 3

    Suginamiguy

    Even though I live in Japan I side with no one about ownership of the islands as I really dont know enough about that particular issue. However after watching the news today and seeing people rampaging through department stores and destroying property I honestly wish Japan would close all its factories and businesses in China and work on finding markets in other places. It surely isnt worth continuing it in that country.

  • 2

    Hikozaemon

    Fact is the Keidanren bosses and flagship companies like Panasonic and Canon have invested so much in slashing jobs and factories in Japan, and building up assets in China and knowhow among Chinese workers that their entire business survival was predisposed on ensuring stable political relations with China, which everyone thought was possible since there is a common view that China values economic interests ahead of politics.

    Well, that proved to be an enormous mistake. This started with the rare earth sanctions last year, and even then Japanese companies, and all other foreign companies invested in China should have gotten the message that their secure presence there is at the whim of whatever political leadership there thinks is in their best strategic interest on any given day.

    This is a powerful sign that it is dangerous for Japan and any other foreign nation to be too invested in China. There are so many better opportunities opening up in more stable countries - Thailand, Mongolia, even Myanmar. There are still plenty of Japan friendly regions of China, especially former Manchuria where it makes sense to continue, but Japanese businesses in the South of China really should be taking their investment elsewhere. The south of China is clearly still not modernized or depoliticized enough for foreign companies to safely operate there.

  • 4

    presto345

    I have no doubt Japanese companies in China have been preparing to set up shop elsewhere. Recent developments will accelerate the process. Beijing is sending mixed signals to its populace - very risky. Rampaging mobs are indicative of the level of a civilization or society. Both sides stand to lose in this conflict, but the Chinese leaders seem to prefer to blame their failing policies on Japan by creating an incident that will see the whole world watching with dismay.

    “But in struggles concerning territorial sovereignty, if Japan continues its provocations, then China will take up the battle.”

    Did I read that correctly, 'provocations'?

  • -2

    presto345

    @Hikozaemon: You are speaking my language.

  • 0

    DHCforM

    They have wiped out factories and stores by themselves. And now, it's really peculiar that Chinese government requests JPN to pay much money to fix. Does JPN need to fix the knife of a burglar?

  • -4

    Thomas Anderson

    Hikozaemon

    Fact is the Keidanren bosses and flagship companies like Panasonic and Canon have invested so much in slashing jobs and factories in Japan, and building up assets in China and knowhow among Chinese workers that their entire business survival was predisposed on ensuring stable political relations with China, which everyone thought was possible since there is a common view that China values economic interests ahead of politics.

    What you also don't know is that Canon is doing extremely well in China and overseas. Japan is a shrinking market, you can't just continue to business only in Japan.

  • 6

    Bhanu Musunooru

    Dear Japan, India and it's people welcome you to move your factories in China to India. We are your natural partners in Asia. You would realize that now after recent incidents in China. India would be a better destination for your technology and capital. We don't forget our friends!

    The entire domestic auto industry in India is thankful to the Japanese and Suzuki. In the 80s, you brought your expertise and invested your time and money to make Maruti Suzuki (and the domestic auto industry) what it is today. The Indian govt should immediately send a high level delegation to Tokyo to seize the opportunity. Welcome to India, Japan or as they say in Japanese – 'Youkoso, Okaeri'! Hopefully I got that right! Thank you.

  • 7

    tokyokawasaki

    As I said in another story. My advice to all countries would be to pull out of China totally. Ban all imports of cheap crap made in China.

    Repatriate your manufacturing back home, or to any civilized country that isn't led by communists or any religion.

  • 1

    nigelboy

    FDI is down from last year and China is on a verge of losing her status as a "factories to the world" with the increase in wages.

    Now they're targeting Korea?

    http://news.donga.com/Inter/3/02/20120917/49464689/2

  • 2

    presto345

    you can't just continue to business only in Japan.

    Neither can you continue to do business in an antagonistic climate and/or pander to a very undemocratic regime.

  • 6

    blackrock

    forget Chinese thugs, welcome JP firms to South East Asia

  • 2

    AU_user_since_1998

    In the past quarters, there were news that a lot of Japanese companies were making inquiries in Indonesia, Malaysia Vietnam, and Myanmar for possible expansion and/or building new factories for Japanese companies where products are for export to anywhere in the world.

    There were also some news about heavy RAILROAD machinery to be built in Vietnam because Vietnam started the 1st subway train system in Hanoi. Seven more subway lines are to built in Hanoi and 5 will be built in HoChiMihn. Instead of importing machinery from Japanese companies from China, machinery are to be built in Vietnam.


    Even the Philippines, with the highest electricity in Asia and one of the countries in the world with strong (radical) Labor Unions, Japanese companies are still interested to invest (instead to China) and actually already starting to build manufacturing companies as part of the interdependent factories among the ASEAN (South-East Asia countries) instead of expanding in China.

    Electronics firm Furukawa Electric Co. Ltd. and adhesives maker Cemedine Co. Ltd. are the latest to invest in the Philippines with a combined 1.016 billion yen in initial capitalization alone. This brought new Philippine investments by major Japanese companies to at least 16.51 billion yen so far this year.

    Furukawa Electrics subsidiary, Furukawa Automotive Systems Inc. (FAS), established a wholly owned unit called Furukawa Automotive Systems Lima Philippines Inc. with a capitalization of 1 billion yen to make wire harnesses for Japan-made automobiles by March next year. FAS said in a report that increasing demand for its products made it put up a first step export hub in the Philippine for its Asian expansion.

    Cemedine will establish Cemedine Philippines Corp. with a capitalization of 16 million yen to manufacture and sell adhesive, ceiling and related products by April 2013.

    Also setting up new facilities by 2013 are BANDAI, the toy maker of Power Rangers and Gundam fame (744 million yen); Fujifilm Corp., which will make optical lenses for digital cameras, projectors and surveillance cameras in Laguna (2.3 billion yen); and electronics components maker Murata Manufacturing Co. Ltd. (620 million yen).

    Expanding their Philippine presence are Canon Inc. and Brother Industries Ltd., which are set to make printers with initial investments of 6 billion yen and 4.23 million yen, respectively.

  • 5

    Realistic

    Seriously, Japan should find a good buddy now.

    I already started adjusting without Chinese crappy goods.

  • 3

    SamuraiBlue

    Mainland China was basically an asembly plant bringing in parts and components made in Japan and other parts of the world. If you remember the Thailand flood of last year skyrocketed the HHD prices. Worldwide panic ran and various automobile manufacturers had to slow down or stop shop when 3/11 occured. My favorite is all M/B fabricators and PSU manufacturers boasts of using Japanese solidstate capacitors on their sales sheets. The list goes on. They can also move as fast as they came.

  • -1

    Sir_Edgar

    It's quite sad that nobody really asks, "Why are the Chinese so upset?" Instead, the focus seems to be that these people are "brainwashed" and "stupid". Try to think about why they are mad...

  • -1

    nigelboy

    Try to think about why they are mad...

    1. Because they are frustrated on many social issues. (unemployment, disparity between the have and have nots)

    2. Because it's the only government sanctioned protests which is allowed.

    3. Because they are brainwashed to believe that their miserable life is all the fault of others with Japan in particular.

  • 1

    Elbuda Mexicano

    China is playing with fire. China can not survive with out the rest of the world, they mess now with Japan, next say with Korea or Vietnam etc..or get really stupid and try to mess with India or Russia?? So, China needs to sit down, drink some tea, and think are some stupid rocks in the sea worth getting not just Japan, but many countries that are FRIENDS of Japan, pissed off at China?? Even if we like cheap stuff made in China, sooner or later people will get tired of this bully, China and BOYCOTT everything Chinese, and see how much Beijing will really care about some crappy islands called Senkaku by Japan and Daiwoo?? by China. So as an Indian guy said here, LEAVE CHINA now and go to India or in my case I would say ¡¡¡BIEN VENIDOS a MEXICO'!!!, WELCOME TO MEXICO Japanese and their companies!!!

  • -2

    Elbuda Mexicano

    Some Chinese now have $$$ so they are getting a bit to cocky and arrogant for their own good, it is sad. The Chinese being brainwashed by Beijing think they are being patriotic by attacking Japanese stores? Cars? People? Keep on smoking your banana peels out there in Beijing. The whole world will soon turn on China for behaving like spoiled children.

  • 1

    hatsoff

    It's often a good idea to observe what those with the most to lose are doing - I saw a BBC World news report the other week about super-wealthy mainland Chinese residents moving their money to Canada and getting residency there because they feared government changes in China would soon result in their money being taken from them.

  • -4

    Sir_Edgar

    Maybe they're mad because:

    1. These islands have always been considered part of China, but Japan having better knowledge of international law claims them by right of "terra nullus" in 1895 (the same year it declares war on China). By the way, this is the same tactic Japan used against Korea in 1905 for those islets known as Dokdo.

    2. Japan never really apologized for the atrocities committed before and during WWII and continues to deny or mitigate them. Adding to this is the insulting insinuation that the sex slaves of the Japanese army were "voluntary prostitutes" and it wasn't 200,000 slaughtered in Nanjing only "a few thousand" and there were "no significant human experimentations" like in Unit 731. Japanese rightists continue to post "evidence" about this which is both arrogant and wrong.

    3. Japanese politicians (and these are mainstream politicians) continue to deny this or that about China and visit the rightist Yasukuni Shrine that claims Japan was "forced" into WWII and only wanted to create a co-prosperity sphere for Asia. Thousands of Chinese and Taiwanese who were enlisted in the Japanese Army are "enshrined" here, some against the wishes of their family.

    Japan = Denial

    China = Anger

  • 0

    SamuraiBlue

    hatsoff

    That has been happening for more than a year now. That is why Canada had a major crack down on immigration in which they revoked fraud applicants that had never set foot on Canadian soil and yet applied for Canadian citizenship.

  • 1

    Suginamiguy

    FDI is down from last year and China is on a verge of losing her status as a "factories to the world" with the increase in wages.

    I was just listening to the radio and Chinese factory is planning to open a factory in Australia of all places. It might only be only factory at the moment, but what does this say about China if they are opening a factory in Australia? Australian wages I thought would be much, much higher than those in China.

  • 1

    Guru29

    Japanese firms shut China plants

    This is certainly good news for Korean companies such as Samsung and LG. Samsung has already beaten all Japanese electronic companies and its products are not only cheaper than those of their Japanese counterparts but also better.

  • 1

    chirimen

    and perhaps japanese manufacturing firms will be more encouraged to be part in the tohoku reconstruction efforts :)

  • 0

    PT24881

    Given the lack of trust between the two countries, J companies have later comers in investing in China -- VW opened its plants in mid 80's brand that secured premium brand recognition & market share in the biggest car market today. Pulling out factories could only applicable to those lower end garment / gadget manufacturing but not for higher added value items 'cause putting a plant in a country does not necessary mean granting a favor but rather to secure market share & minimizing duties ! No wonder Audi, BMW & mercedes Benz all have factories out there..

Login to leave a comment

OR

More in Business

View all

View all