Japanese firms should quicken integration into Chinese society

Japanese multinational automaker Toyota Motor Corporation recently announced that it will change the name of its Chinese division from "Toyota China" to "China Toyota," launch joint-venture brands in China, and shift certain functions of its Japanese headquarters to China.

Although it is somewhat late, Japanese companies have finally begun localization in China, and such a process has a great impact on their development in the country.

Japanese MNCs have lagged behind their European and U.S. counterparts in localization in China for a long time, and paid more attention to localization in Europe and the United States.

For example, Toyota Motor allowed a Canadian to be the general manger of CAPTIN the Canadian subsidiary Canadian Autoparts Toyota, Inc. as early as 1998, and an American who once worked for Ford Motor Company to head another subsidiary Toyota Motor Manufacturing, Kentucky, Inc. TMMK in 2001.

These moves were aimed at localizing its North American subsidiaries, so they could integrate into the local business environment.

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