With no reduction in tensions between China and Japan, Fuji Heavy Indistries said it would reduce exports of Subaru cars to China by about 80% to avoid further increases in excess inventory.
The company said it would cut monthly shipments to about 1,000 units from 4,000 to 5,000 units for the coming months.
Fuji Heavy is the only Japanese carmaker with no production in China, exporting the Forester SUV and other models from Japan.
Sales of Japanese models have been down significantly following a territorial spat between the two countries over a group of islands.
Subaru saw its sales in China fall by 1,500 units during October, down 70% year on year, and the sharpest decline among Japanese automakers.
Toyota lowered Japanese production of its Lexus luxury brand line for China and Nissan has also reduced production of Chinese Infiniti vehicles at its Tochigi Prefecture facility at least until the end of the year.