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Friday, March 25, 2011

China Looks West as Japan Cuts Production

China will need to source a wide range of products from Europe and the United States to make up for the shortage stemming from the natural disasters in Japan, businesses and experts say.

After the earthquake and tsunami, Japanese electro-mechanical and auto manufacturers such as Sony, Sharp, Toyota, Nissan, Shin-Etsu, Toshiba and Honda suspended much of their operations, affecting exports of semiconductors, chips for electronic devices, precision instruments, industrial bearings, auto and electronic components.

China imports many electro-mechanical products from Japan, but the March 11 earthquake and tsunami damaged much of the infrastructure. Last year, about 18 percent of China's electro-mechanical imports came from Japan, making Japan China's biggest source of electro-mechanical products, according to the General Administration of Customs.

Wang Cun, manager of the marketing department of China Automobile Trading Co Ltd, says the shortage of motor components may result in fewer cars being produced by Japanese manufacturers in China. Japanese vehicle sales in China account for 27 percent of the market. Nissan Motor Co (China), which has several factories in China, says its stocks of some components will last until the end of March, but no one knows when supplies from Japan will resume.

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