Japanese automaker Nissan has expanded the volume of exports of auto components produced in China. The company has now begun to export components from China to Renault Samsung Motors in South Korea, the Nikkei and Reuters report. The automaker has also begun to export powertrain components to Renault Samsung.
 

Significance: Nissan already exports components produced and sourced in China to its production bases in Japan and the United States. It exports components from China to 17 Nissan plants globally, but has only recently begun the export of powertrain components to South Korea. Despite rising labour costs and sourcing costs in China, Nissan has indicated that sourcing and exporting of components from China will not reduce. Takashi Nishibayashi, head of Nissan's Chinese business is quoted by the Nikkei as stating that China remains cost-competitive when taking into consideration factors such as quality and economies of scale.