How are Japans manufacturers faring against low-cost competition from China?
JAPAN’S manufacturing has been steadily moving overseas, most obviously to China. Among the reasons: wages in Japan are much higher, by a factor of between 20 and 30 times. Look more closely, however, and China is far from being the only threat facing Japan’s manufacturers. Individual Japanese companies talk as much about competitors in America and Europe as they do about China. Some are most concerned about the technological prowess of South Korean firms such as Samsung and Hyundai. Many Japanese companies are raising their game, using a range of strategies to fend off low-cost competition from overseas. Some of them are fortunate because they start from positions of relative strength. Leading firms such as Toyota and Canon have developed integrated manufacturing systems that are far more sophisticated and complex than rivals can manage. In other sectors, companies have learned how best to protect trade secrets that have long made them competitive, often bringing back home activities
