Nissan 7201-0.40%decrease; red down pointing triangle, once a symbol of Japan’s carmaking prowess, spent the past five years trying to regain its footing after the arrest of longtime leader Carlos Ghosn, only to find itself in a precarious spot again.

Among the reasons for Honda Motor Co. to enter merger talks with Nissan Motor Co., one looms large: China. Most Read from BloombergReviving a Little-Known Modernist Landmark in BuffaloThe Architects Who Built MiamiNew York’s Congestion Pricing Plan Still Faces Legal HurdlesNew York City’s Historic Preservation Movement Is Having a Midlife CrisisMexico City to Boost Mobility,

Hon Hai Precision Industry Co., the Taiwan-based manufacturer of iPhones known as Foxconn, is putting its interest in pursuing Nissan Motor Co. on hold while the Japanese automaker is in negotiations for a potential merger with Honda Motor Co.