18 September 2012 07:34 [Source: ICIS news]
By Fanny Zhang
SINGAPORE (ICIS)--Japanese firms, including major car producer Toyota, have temporarily stopped operations in China for at least two days, as anti-Japan protests sweep across Asia’s biggest emerging market economy over a territorial dispute on islands in the east China sea, industry sources said on Tuesday.
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There are concerns that protests will escalate on Tuesday, as the date - 18 September - in 1931 marked the start of
Other Japanese carmakers Honda and Mazda have decided to halt production in
The automotive industry is a major end-user of petrochemicals, including styrene butadiene rubber (SBR) and plastics.
With calls in
In August, sales of Japanese cars in China fell by 2% year on year, while sales in Germany, American, Korean and French cars sales in China increased by 26.5%, 19.9%, 13.0% and 4.21%, respectively, according to China Association of Automobile Manufacturers.
Japanese car sales in September are expected to plummet, sources said.
Many Japanese cars are burned or damaged in the protests. In
Despite current heightened tensions between the two countries, analysts said that the issue should soon calm down since neither of the two Asian economic giants would want a lasting damage to bilateral trade ties.
It remains uncertain how the issue will be resolved.
“Policy makers are wise enough to prevent it from escalating into trade wars. For
Sources said that the current jolt is unlikely to result in Japanese companies closing their
Long-term impacts are yet to be evaluated, according to industry sources.
($1 = €0.76)
Additional reporting by Dolly Wu, Viola Pan
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