Panasonic suspends Chinese factories

Japanese manufacturers have temporarily closed factories in China following a spate of anti-Japan protests.

Panasonic has suspended production at two of its component factories in China
after they were attacked. It has said that its plant in Qingdao would remain shut until tomorrow and it would continue to review the situation in the upcoming days.

Atsushi Hinoki, a Tokyo-based Panasonic spokesman, told Reuters that another plant in China had also closed after several workers “sabotaged” operations in the factory.

It is also reported that Canon has moved to take similar action, suspending three of its Chinese factories.

The attacks are a part of wider protests that have spread across China after Japan said
it had agreed to a deal to buy a chain of disputed islands in the East China Sea from their private Japanese owner.

China has always claimed that it has rights to the islands – Diaoyu and Senaku – which are also claimed by Taiwan, and are rich with resources.

Although all countries involved have been rowing about who is entitled to the islands, the situation came to a head over the weekend after Tokyo announced that it had agreed to buy them.

The announcement has caused protests in China with Japanese companies and their property being damaged in the demonstrations.