Toyota on Wednesday denied reports saying that it would temporarily close some of its factories in China amid strained bilateral ties.
A spokesman of Toyota Motor China Investment Company said growing political tensions between the two countries have dampened sales in China. Some stores received fewer customers and subsequently less orders due to the Diaoyu Islands territorial dispute.
Toyota factories in China are all established through joint ventures with Chinese partners. The spokesman said those plants are expected to adjust their production amid falling demand, but that the company will NOT close any factories or pull out of the Chinese market.