After anti-Japan protesters in China smashed cars and torched dealerships, Koito Manufacturing Co. suspended a plan to triple its production in the country.
With a new factory half-built, the Toyota supplier reasoned that it may no longer need it.
"Demand from automakers is unclear, so we don't know how long we will have to freeze the project," said Shinji Karasawa, spokesman for the Tokyo-based headlight maker.