Japanese firms in China: Culture shock

Chinese labour unrest is forcing Japanese bosses to change

JAPANESE firms were among the first to open factories in China. Deng Xiaoping personally petitioned Sony’s boss, Akio Morita, a few weeks after opening the Chinese economy 30 years ago, in a secret meeting arranged by Henry Kissinger. But having at first helped to develop a poor China, Japanese manufacturers now struggle to operate in a wealthier one.

A series of labour disputes in recent weeks has shut down numerous Japanese factories and disrupted production. Among the victims are Toyota and Honda, hit by a shortage of parts because of stoppages at suppliers. Mitsumi Electric resumed production on July 3rd after a strike affected its electronic-parts factory. Subsidiaries of Nippon Sheet Glass and others have also faced unrest. In 2005 companies suffered anti-Japanese rioting over historical grievances; today the issues are pay and working conditions. …

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