Honda Motor says its car manufacturing plant in south China has resumed production. This comes after it agreed to a pay rise for its employees at one of its parts plants.

A labor dispute halted production at all of Honda's four car plants for most of last week. The affected factories have a combined annual production capacity of 650,000 units.

Workers had demanded a pay rise and more benefits. Honda ranks fifth in China, in terms of unit sales in April.

Sales in China accounted for 17 percent of Honda's global sales last year. Its CEO is hoping to increase that by 9 percent this year.

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