Another Chinese auto supplier has been hit by a strike.

Production at Toyota group affiliate Denso in southern China had been halted since Monday, a spokesman for the supplier said on Tuesday (22 June 2010).

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Seiichiro Kunitomi told Kyodo News the stoppage at Denso (Guangzhou Nansha) in Guangzhou stemmed from ”workers’ call for better wages and treatment” but did not elaborate as negotioations with workers were ongoing.

The factory supplies fuel injection parts to Toyota, Honda and other car assemblers in China.

The Denso-owned plant has 1,100 employees, another spokesman said.

A receptionist at the Guangzhou plant told the news agency by phone company managers were in an ”emergency meeting” but declined to say if the strike was continuing.

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She did say, however, the plant was closed for the day.

Chinese commerce minister Chen Deming has dismissed speculation the labour disputes involving Toyota, Honda and other foreign firms could prompt large-scale transfers by foreign investors in factories to Vietnam, Thailand or other Asian economies given rising labour costs in China.

Chen told Hong Kong-based Phoenix TV the disputes ”will not have a sweeping effect once appropriately resolved.”

”Given the circumstances of the lingering global economic crisis and various other difficulties faced by enterprises, we will ensure the workers get a moderate increase in their pay and simultaneously guarantee that the employers will not be overburdened by the rising personnel costs,” Chen was quoted as saying by China Daily.

Pay rise ends Honda strike