Japanese manufacturers are considering moving some of their factories back to the home country from China, as salaries grow rapidly in this country, according to press reports.
Hewlett-Packard Japan is currently producing 90 percent of its personal computers in Japan, after repatriating notebook production from China.
FDK Corp. is another example. The company moved back to Japan a part of its high-quality ferrite production lines. The material is used in producing circuits for cars.
The tendency of the Japanese manufacturers is to keep the production of high-end items in Japan, although some low-cost items are still made in China.
China’s economic development has other effects too. Even if it has traditionally been a destination for Japanese investments, the trend is being lately reversed, with Chinese companies buying more and more financially troubled Japanese firms.
In this way, China’s increasing wealth could become a serious help for Japan’s stagnant economy, analysts say.
Source Article from http://www.tokyotimes.co.jp/2012/japanese-firms-repatriate-production-from-china/
