TOKYO, July 23 (Reuters) - Nippon Steel ( NISTF ) will

dissolve its joint venture with China's Baoshan Iron & Steel

, slashing the Japanese company's steel production

capacity in China by 70%, the Nikkei business daily reported on

Tuesday.

The company has decided to shift its attention to expansion

in the United States and India, as its key customers, Japanese

carmakers, are facing tough competition with Chinese electric

vehicle makers, the daily reported.

Baosteel is a subsidiary of the state-owned China Baowu

Steel Group, the world's largest steelmaker. Nippon Steel ( NISTF ) did

not immediately reply to a Reuters request for a comment.

After ending the JV, Nippon Steel ( NISTF ) will still have production

capacity of around 1 million metric tonnes per year in China,

also thanks to its joint business with Wuhan Iron & Steel,

another unit of China Baowu Steel Group, Nikkei said.

(Reporting by Satoshi Sugiyama and Katya Golubkova; Editing by

Jamie Freed and Varun H K)