Sunday, October 07, 2012

Japanese Car Makers Decreasing Production for Chinese Market

No, it is not for economic recession or any decrease in the Chinese market. The top 3 Japanese automakers have decided to cut back on production in China because of growing tension between the two countries. Anti-Japan feeling is growing in China and as a result, some groups have called for boycotting Japanese products. This event has become a blessing for Korean car producers as the demand for Korean cars is increasing in China.
Japan's Toyota Motor Corp , Nissan Motor Co and Honda Motor Co plan to slash production in China by roughly half, the Nikkei newspaper reported on Monday, as a territorial row between Asia's two largest economies cuts sales of Japanese cars in the world's biggest auto market.
 Sales have plunged at Japanese car makers since violent protests and calls for boycotts of Japanese products broke out across China in mid-September over the Japanese government's purchase of a group of disputed islands in the East China Sea from their private owner.
This event shows how political problem can affect economic ties in Asia. Sadly, most of the Asian countries are at odds with their neighbors for various reasons and often it causes a negative impact on economic ties. Asian countries need to work for closer cooperation and increase internal trade or else they will always fall behind their European and American competitors.