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.
Chicago
Tribune wrote:
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.
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