JAPANESE COMPANIES ARE LEAVING CHINA! Toshiba shutting Chinese facility after 30 years.
Published at : October 31, 2021
Pearl of Dalian’ Toshiba shutting Chinese facility after 30 years.
Japanese tech giant, Toshiba will relocate its 30-year-old production plant from China's north-eastern city Dalian to Vietnam or Japan, amid dispute with China.
Japanese tech giant, Toshiba will relocate its 30-year-old production plant from China's north-eastern city Dalian to Vietnam or Japan, amid the country's ongoing dispute with Beijing. The plant, Toshiba's first in China, employs approximately 650 people and produces industrial motors. However, due to a sharp reduction in production, the unit was put on the chopping block, and the company chose to close it down by the end of the month, according to Nikkei Asia.
The operators have stated that the liquidation of this industrial operation will begin as early as October, with capacity being relocated to Vietnam and Japan. The action occurred amid a recent struggle between Beijing and Tokyo over China's expanding clout in both the South China Sea and the East China Sea, partially in response to Beijing's fears over the growing US military presence in the region as a result of worsening China-US tensions.
Meanwhile, Beijing claims control over practically the entire South China Sea, with Brunei, Malaysia, the Philippines, Vietnam, and Taiwan having conflicting territorial claims. The Chinese Communist Party (CCP) had previously released a video in which it warned Tokyo of nuclear retaliation and 'full-scale war' if it interfered with China's administration of Taiwan.
According to South China Morning Post, Toshiba's impending departure comes as a number of countries, including the US, seek to reduce their reliance on China, according to Liu Zhibiao, a professor of industrial economics at Nanjing University in Jiangsu province. Furthermore, electronic items from businesses like Toshiba are now up against stiff competition from Chinese brands, reducing demand for foreign brands.
Japanese tech giant, Toshiba will relocate its 30-year-old production plant from China's north-eastern city Dalian to Vietnam or Japan, amid dispute with China.
Japanese tech giant, Toshiba will relocate its 30-year-old production plant from China's north-eastern city Dalian to Vietnam or Japan, amid the country's ongoing dispute with Beijing. The plant, Toshiba's first in China, employs approximately 650 people and produces industrial motors. However, due to a sharp reduction in production, the unit was put on the chopping block, and the company chose to close it down by the end of the month, according to Nikkei Asia.
The operators have stated that the liquidation of this industrial operation will begin as early as October, with capacity being relocated to Vietnam and Japan. The action occurred amid a recent struggle between Beijing and Tokyo over China's expanding clout in both the South China Sea and the East China Sea, partially in response to Beijing's fears over the growing US military presence in the region as a result of worsening China-US tensions.
Meanwhile, Beijing claims control over practically the entire South China Sea, with Brunei, Malaysia, the Philippines, Vietnam, and Taiwan having conflicting territorial claims. The Chinese Communist Party (CCP) had previously released a video in which it warned Tokyo of nuclear retaliation and 'full-scale war' if it interfered with China's administration of Taiwan.
According to South China Morning Post, Toshiba's impending departure comes as a number of countries, including the US, seek to reduce their reliance on China, according to Liu Zhibiao, a professor of industrial economics at Nanjing University in Jiangsu province. Furthermore, electronic items from businesses like Toshiba are now up against stiff competition from Chinese brands, reducing demand for foreign brands.
JAPANESECOMPANIESLEAVING