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Chinese Protests (© AP)

Chinese Protests Impact Japanese Car Sales


Japanese auto manufacturers are cutting production following recent violent anti-Japanese protests in China

Drama continues between Japan and China due to a territorial dispute they are having resulted in on-going anti-Japanese protests. These protests include boycotts of Japanese products all over China and profit margins have dropped sharply for Japanese businesses including Toyota, Nissan and Honda. Because of this production is expected to be dropped by half in China which means that not only is the boycott going to affect Japan, but Chinese autoworkers will feel the sting as they lose their jobs.

Nissan is currently planning to cut the night shifts at two of their Chinese plants. Toyota and Honda are also reducing their production in China by cutting back on work hours and slowing down their production lines. This information is not confirmed by the automakers at this time, but is coming into the global news channels through the Japanese press.

Japanese automakers have sharply cut production schedules through the end of October, a sign that they see little immediate improvement on the horizon, although they have followed corporate traditions so far of refraining from layoffs. Automakers release figures only for their sales to dealerships in China because the government has halted the release of retail sales figures by dealerships to consumers for the last year.

Protesters took to the streets over a territorial dispute involving claims by China and Japan to sovereignty over a cluster of uninhabited islands northeast of Taiwan, known as the Diaoyu in China and as the Senkaku in Japan. Anti-Japanese protests subsided during the weeklong national holiday in China last week.

But the issue continues to simmer, with the Chinese government announcing that it would continue to send surveillance vessels to waters around the island that have been patrolled for decades by Japan’s Coast Guard. Chinese fishing boats may also try to reach the islands after the holiday, as it has become politically more difficult for either the Chinese or Japanese governments to stop them.

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