Japanese Auto Industry Conflicts

Over a recent dispute written by Bloomberg between China and Japan, anti-Japanese sentiment has flared up in China. Violent protests over the Japanese’s government purchase of the Diaoyu (in China) or Senkaku (in Japan) Islands led Chinese protesters to chant “Down with the Japan devils, give back Diaoyu,” on the 81st anniversary of the Manchurian Incident. Protesters anti-Japan campaign has spilled over into the auto sector. Japanese made vehicles such as Honda, Mazda, Mitsubishi, Nissan, and Toyota have all been targeted. Protesters have flipped cars and attacked and vandalized dealerships. People have gone to such lengths as to take the bus and leave their vehicle at home. Toyota, Honda, and Nissan have all ceased production at Chinese plants. Dealerships say the walk in customer average over the weekend was half the normal. Market share for Japanese automakers is expected to drop below that of German automakers.

It is amazing how influences completely beyond the control of companies of the Japanese auto industry can have such effects on the business. Ill feelings towards a company can last a long time and in no way has the company brought this upon themselves or could they have planned for it. It’s an incredible way the economy can work and some analysts say this could hurt these companies worse the tsunami last year. All due to consumer taste.

Coltan Mining

This article from Foreign Policy focusses on the iPhone and the many ethical situations around its materials, production and use. This post will disuss one particular material used within the iPhone, and other electronic devices, found in the Democratic Republic of Congo: Coltan.

Coltan, short for columbite-tantalite, is used in almost every electronic device around the world including the iPhone. The mineral coltan is able to hold a high electrical charge for lengthy periods of time and for that reason, all mobile devices as well as the iPhone use coltan to improve battery life.

While 50% of the world’s coltan resources are mined with fair practices from Australia, many mines in Congo are controlled by rebel groups. The DRC does not benefit from the profits of the mines. In fact, the mines create dangers in the country. Not only are the working conditions extremely hazardous, but the war over control of the mines has killed nearly seven million people in the last twelve years. Apple claims it requires suppliers to “certify that the materials they use have been produced in a “socially and environmentally responsible process”” but the mineral is very hard to trace. As a company, business, or even consumer in the electronics world, how do make sure your electronics avoid coltan mined from the Democratic Republic of Congo?