business

Japanese firms say China protests affect business plans

22 Comments
By Tetsushi Kajimoto and Izumi Nakagawa

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© (c) Copyright Thomson Reuters 2012.

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22 Comments
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It's about time. Red china is the enemy of the Japanese people, and encourages mob violence against them, and will continue to do so in the future. There are good Chinese people for sure, but the red chinese government is an evil entity, like its vulgar cousin and only friend, north korea.

It's fantastic the world is finally waking up to this fact.

1 ( +7 / -6 )

Red china is the enemy of the Japanese people,

As much as J-politicians is to Chinese people.

-2 ( +4 / -6 )

I'll bet western countries will at the very least debate committing new money to China when they can have lower wages and more stability in Southeast Asia and India.

2 ( +5 / -3 )

I'll bet western countries will at the very least debate committing new money to China when they can have lower wages and more stability in Southeast Asia and India.

Yes, you may be right. But it stops there. The problem is that Japan cannot sell goods in China and the China is the #1 country for Japan export.

0 ( +3 / -3 )

This is precisely what I said last week about my business contacts considering exiting china for more stable manufacturing locations.

1 ( +3 / -2 )

@Herve Nmn L'EisaSep. 24, 2012 - 09:11AM JST

This is precisely what I said last week about my business contacts considering exiting china for more stable manufacturing locations.

Where is in the world has more stable place for manufacturing? Stabiltiy without higher productivity will not make money! Many firms went to China for attraction of cheap labour and land back in 1980s. Then they sold their cheap goods to world wide market. It is no longer true. China is getting more expensive now. In term of wages, Chinese labor are three times more expensive than Bangaladesh, Sri Lanka and Africa now. Land lease is unfriendly to wallet too.

However not all firms will move there happily as you said. They concern about supply chain of raw materials and components. For example China control 90% of rare earth supply. China steel output is one of the highest in the world. Without efficient supply of essential thing, manufacturing goods like a driving low gear truck on the steep.

0 ( +3 / -3 )

It's high time to pull all investment in Red China and go else where.

0 ( +6 / -6 )

Using China as a base is extremely convenient for Japanese companies. The massive investments that Japanese companies have made will not be easily given up. The Chinese know this. Japan is being hurt economically much more than China, as its economy is debt ridden and in a slump-China is the opposite.

I predict the Senkaku islands will be sacrificed like a lamb, to provide Japanese Inc with its cheap supply of labor

1 ( +2 / -1 )

Well said: "Japanese companies could bypass China for Southeast Asian countries such as Indonesia, Malaysia or Thailand"

More friendly countries are waiting pls, Japan come. Its time to move now...This is will continue to happen again and again in future, no doubt. Amendment made now will certainly save more in fute. Japan Move out of China now ! You got what people need... You are respected. My grand mums refrigerator that w as bought since 1982 is still working well till date...how about the one bought last month that was copied from the other country? It has since been sent to a repairer who advised buying a new one is far better than repairing the old one... If you say it was made in china, well you said it and not me...

Japan you well ok pulling out of china now cos this is not the end of this mess, it will repeat in future and you will experience yet another strike so move now and settle once and for all.

2 ( +3 / -1 )

Go back door via Burma. You can export everything to Communist China without disturbing. No country friendlier than Burma for Japanese on the earth. They may be poor but these peoples are honest and hard working workers.

2 ( +2 / -0 )

No S**T Sherlock. I just can't stop laughing about how your average Japanese and politicians protest against China while all of your businesses are crying with a bleeding heart on how to repair relationship with China.

You can't have it both ways. There is no such thing as warm economic ties and freezing political ties. The world doesn't work like that. Especially when you have territorial disputes. Think the Jews and Palestinians. Pakistani and Indians. Armanians and Russians.

It just doesn't work. Just get out of China and move somewhere else. You don't need to be there. We can take up the slacks. China doesn't want you and you don't like the Chinese. Why struggle with this? Just leave. IF you want to stay in China, play by their rules, their country, their rules.

0 ( +1 / -1 )

Myanmar, Thailand, Vietnam - there are better, cheaper, more politically stable places to bet on than PRC. This is a great opportunity for Japanese companies to disentangle themselves from operating in the PRC at the whim and mercy of the CCP.

5 ( +5 / -0 )

Zepun, seems you misread my post.

1 ( +1 / -0 )

The article points at a "crucial" issue for ALL Japanese and other foreign companies trying to do business "within" China. Cheap labor and production cost is NOT the answer to competition today, especially if the production facility is in China with Chinese workers and forced "joint venture" with Chinese companies.

The open conflict is an invitation and a dare to all foreign countries now invested in China to confront China. All they have to do is "nationalize" and take over ALL foreign factories along with the technologies using "conflict' as the reason for such move to protect the country. They already have their people trained and educated by foreigners to "run" the factory themselves anyway.

Already most of the world is "dependent" on China for the cheap products and cannot "compete". Besides China knows that the next big market is China itself then Africa. As far as Africa is concerned, they "bought" the African nations anyway, by giving them CREDIT aid. The African nations are "forced" to buy from China to use that credit.

Japanese and other countries will be wise to start developing their business within their own country for a change.

0 ( +0 / -0 )

Myanmar, Thailand, Vietnam - there are better, cheaper, more politically stable places to bet on than PRC. This is a great opportunity for Japanese companies to disentangle themselves from operating in the PRC at the whim and mercy of the CCP.

I think so too. The three countries you mention, there's a huge difference in mentality from the one in China. Over the years China has squeezed all the technology they needed out of Japan and feel they can now do a little more squeezing. Politically. (Did I mention mentality?)

Japanese companies won't all leave China overnight, but things are not likely to improve, probably never, and you bet the companies are making new plans.

1 ( +1 / -0 )

Question came up saying how this can be resolved short of a military conflict?

If anything China can place huge "duties" and "tariffs" on all exports going to countries or demand huge "taxes" and "fees" from foreign companies if they want the factories back. In any case, they will "own" all foreign investments.

To begin with, any $ or Yen invested in Yuan which may have made profits may be prohibited from being taken out of the country. If such funds were to be asked to be exchanged to a foreign currency, they may authorize a small percentage, lets say 25% to be convertible. In any case, they can "destroy" any foreign company within China that does not produce for China.

0 ( +0 / -0 )

I think as time passes the rest of the world will realize that China has been a bad investment, there will be problems with other countries, mark my words it isnt just Japan, & as the world realizes China is off its rocker they too will invest less, pull out of China etc & as I have been saying for ages, China, explode or implode or both..........there simply is NO WAY the status quo can be maintained in China, its a fire cracker that has been lit, we are just waiting for it to explode/implode is all

2 ( +2 / -0 )

Hey folks dont believe me, check out the crap going on at apples etc plant in China, the you know what is hitting the fan!

1 ( +1 / -0 )

Move manufacturing out of China and guess what - no more strikes or inferior products, no more military threats, and lots of jobs for our own people. Why wait?

-1 ( +0 / -1 )

Actually Japanese companies have been investing more in other Asean Countries to mitigate the China risk. They should be more careful and possibly move back in after China implode or explode. The Chinese are uninformed of the reality due to PRC control and mentally too volatile now and possible for many decades to come.

0 ( +0 / -0 )

Herve Nmn L'EisaSep. 24, 2012 - 04:35PM JST

Zepun, seems you misread my post.

I understand you do not want to do business which is unstable and xenophobic. I do not want either. Trouble is not easy to find realiable supply Chain such as steel, rare earth, copper etc.

Germany is more stable than China. However German business are expanding their branches in China. For them, EU is very small comparing with China.

0 ( +0 / -0 )

This is what happens when people elect the DPJ.

0 ( +0 / -0 )

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