Japanese Firms and Import Operations

parent companies: Their Chinese subsidiaries are facing difficulties in their export and import operations, according to The Japan Times. It also has become increasingly hard for them to pay loans, dividends and compensation for services to their parent companies. As Beijing tightens its grip on capital transactions, Japanese firms are being adversely impacted. Several major automotive parts makers that are affiliated with Toyota and Honda and have plants in Guangdong Province have since last fall been denied permission by the Chinese authorities to repay debts amounting to billions of yen to their Japanese parent firms. This trouble, which surfaced at more than 50 Japanese firms in Guangdong, Dongguan and Shenzhen last fall, has now spread to hundreds of other Japanese firms in areas like Shanghai, Dalian and Jiangsu Province. Pleas and protests made through Japanese banks’ branches in China and the Japanese consulate have made no headway. (news.financializer.com). As reported in the news.