Nissan management opposes a union, although it says workers are free to choose whether they’d like to be represented or not.
Automaker thinks the technology will eventually save costs and boost efficiency.
Investigative panel said data falsifying went on for 25 years.
Nissan and Mitsubishi will develop a new small car through an existing joint venture, including an electric version.
The factory will initially employ 300 workers and produce more than 10,000 cars per year.
Communist government promoting auto manufacturing, but still fine-tuning policies to encourage smaller, fuel-efficient vehicle sales.
Facility will produce up to 300,000 vehicles and is part of the automaker’s Chinese joint venture with Dongfeng Motor Co.