According to the nikkei Chinese website, recently large Japanese raw materials companies are increasing investment in the automotive sector in China.
JFE steel will invest y12bn in a joint venture automotive steel plant in guangdong.
Increase capacity by 50 percent by 2022.
JFE is increasing its investment in China, centred on its main steel business.
Its chemical division announced in August that it would invest about 7.3 billion yen to build a plant to produce cathode materials for lithium-ion batteries.
In the business sector, funds have been made to manufacturers of electromagnetic steel plates for use in, for example, pure electric vehicles (evs).
Other big Japanese raw materials companies will also take action.
Mitsui chemical will produce fiberglass reinforced plastics for car door components for the first time in China.
A new production line will be introduced at the plant in guangdong province, with the aim of putting it into operation in September 2020.
Diren will open a factory in changzhou, jiangsu province in the spring and summer of 2020 to produce lightweight composite materials for automotive applications.
This will be the company's second factory in China.
While China's car market remains depressed, sales at Japanese carmakers such as Toyota have held up.
New car sales in China fell a cumulative 10 percent year on year to 18.37 million units in the january-september period of 2019.
Meanwhile, sales of Japanese automakers such as Toyota and Honda rose by around 10% in China.
Toyota jumped to no. 2 (up from no. 5 a year earlier) and Honda to no. 5 (up from no. 7).