As China tensions simmer, Japan pulls back from "world's factory"

Comments (4)
SpockV wrote:

It doesn’t seem the pullback of Japanese investment
has affected foreign investment in China. Somehow
the void left by Japan has been filled by others:

http://online.wsj.com/article/SB10001424052970203406404578074683825139320.html

Maybe Japan can find alternative markets in Africa
and India etc.

Oct 24, 2012 1:02am EDT  --  Report as abuse
WJL wrote:

The market is in China. The Japanese are just pulling out of the biggest market???

Oct 24, 2012 5:46pm EDT  --  Report as abuse
wintpu_Canada wrote:

It is nice to spread their production around ASEAN as well. In fact for lower end labour intensive products, Chinese firms are already moving to ASEAN as well. ZTE the Chinese company for example started a plant several years ago in Pakistan with 30,000 workers. 1990 I came across an annual convention of Chinese entrepot entrepreneurs in Shantou and they constituted Diaspora Chinese from all over the world. So all the information you collect about Japanese firms leaving China is just trash talk. Instead of making peace with China they can leave and lengthen their logistics factor. They will also abandon an exploding consumer market of 1.3 Billion. For larger items like cars they are stuck with China. China has become the only country having all 100 industries the world can name, not by accident. The infra-structure for any industry takes decades to develop. You mention 20,000 Japanese firms in China. Compare that with 1 million Taiwan businesses in China. When it comes to ASEAN, don’t you forget that those economies have major participation by their Chinese Diaspora citizens and they have all integrated very much with their links with China. China is also going through some major restructuring in the higher end industries. But that is for me to know and for colonialist to find out later.

Oct 27, 2012 1:11am EDT  --  Report as abuse
wintpu_Canada wrote:

And lets talk really up-to-date instead of vaguely who has technology.

AEROSPACE. The Boeing 787, 35% parts sub-contracting is one of the few remaining edges they have left. But that is not quite an edge because they do not have full airliner production. China has just issued their commercial regional jet and is on the way to have production soon of larger jets. China does not need Japan.
ELECTRONICS. They do not have China’s ODMs which now source worldwide and assemble wherever. ODMs have the knowledge and agility to create new products faster than the global western brands can. The ODMs anticipate the needs of Apple, HP, Dell, etc.
CAMERAS. Even here, China’s edge is in the newer CMOS chips, the heart of digital optics CMOS is silicon wafer volume technology and Chinese companies have the lower costs that come from the volume of cell-phones. Take one of these CMOS companies, Sunny Optech Co Ltd. of Ningbo. Their chips-and-lenses customers include Panasonics, Samsung, Foxconn [iPhone]. Having volume also means more R&D so they have surpassed Japanese camera companies in the bigger sized sensors. Nikon and Canon are vertically integrated at the high end but they do not have volume CMOS and therefore the lowest cost production that Chinese firms have. My set of Nikon D300 latest price $2500 is facing a new Samsung set with better features $900.
GREEN TECHNOLOGIES. China has become 2011 the world’s number one investor in the Green Technologies, followed up German, then USA. Japan could have tapped into this exploding China market but the big exhibition to sell China Japanese Green products got cancelled by the latest Noda folly.

Oct 27, 2012 1:27am EDT  --  Report as abuse
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