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As for the South China Sea, Shanahan accused China of undermining freedom of navigation and overflight in the region, and militarizing the local islands.
As a result, Nikon announced it would lay off 1,000 employees in the Japanese market late last year, which was about 10 percent of the company's total headcount in Japan. Canon reported a 10.5 percent decline in its turnover for the 2016 fiscal year. Another Japanese camera maker, Ricoh, said in April that it might close its consumer digital camera business.
As for the human rights issue, the U.S. State Department recently issued the Country Reports on Human Rights Practices for 2017, criticizing China's human rights condition and ethnic issues.
As explained by Cherrie Shi, senior counsel of legal firm FenXun Partners, major reasons for multinational companies moving their manufacturing bases from China to counties in Southeast Asia include China's rising labor costs, overcapacity in heavy industry, and stricter rules and regulations on environmental protection. On the other hand, technology development and skills of the labor force have improved over time in China.
As a result, Moutai is looking to finding opportunities to expand its operations outside China.