By Nick TaylorPublished November 05, 2017 07:55:47Japan’s car manufacturers are exploring a possible partnership with China to produce its vehicles, after the Japanese government last week said it was willing to assist Chinese automakers with making cars in the country.

    The move comes amid rising tension between Tokyo and Beijing, where the latter has accused the Japanese of failing to uphold its commitments in the region, particularly to the South China Sea.

    According to Japanese media reports, Japan has expressed interest in buying two new models from Chinese car manufacturer BYD for a combined price of 1.5 billion yen ($15.7 million), as well as helping China develop its own automotive products.

    The two companies, which have a joint investment value of about 7 billion yen, have been competing for more than a decade to supply cars in Japan, but have had a rocky relationship since China imposed tariffs on Japanese goods in December.

    China has denied the allegations, saying the tariffs were imposed on goods from Japanese companies.

    According the Japanese automakers, the joint investment would be a boost to their efforts to make more car models in China, where BYD and Nissan are both based.BYD and BYD-owned Mitsubishi have been involved in a series of high-profile deals to sell cars in China.

    But by 2020, the two carmakers would have to produce a minimum of 50 million vehicles in China in order to meet the target of having 50 million cars on the road by 2020.BYE-BYE, BYD’s two biggest competitors in Japan with a combined investment value between 2.5 and 4.5 trillion yen, will now be joined by a Chinese carmaker.

    The joint venture, known as BYE-Bye, is to be headed by Chinese company BYD Autonomous Vehicle Co. It will be led by a joint venture of BYD Automotive Co. and China National Chemical Corp. and will also include BYD Mobile and BYE Co.

    China is the world’s biggest car market, with about 40 million cars sold every year, according to figures from the World Automotive Council, a research and consulting group.BYED and BYED-BYO are joint ventures of BYED Automotive, BYED Mobile and Nissan, which together have a combined invest of more than 4 trillion yen.BYEN is the Chinese car industry’s leading automaker and the parent company of BYEN.BYEH, which means “blue, yellow and green,” is a common Chinese name for blue, green and white.BYEVO is a Chinese acronym for “Chinese Auto-Evolution,” which means the Chinese industry is in a long-term evolution.BYDP is the abbreviation for “by way of delivery,” referring to the Japanese cars sold in Japan.BYEO means “by our way of delivering,” referring the Chinese cars sold outside of Japan.

    The Japanese automakers’ interest in a partnership is not surprising.

    In 2017, Japanese carmakers Toyota and Honda jointly announced plans to sell 50 million SUVs by 2020 and 30 million trucks by 2022.

    The companies have also signed a pact with BYD to make two models.

    The BYE model is expected to sell in 2020.

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