YOKOHAMA, Japan (Reuters) - Nissan and Honda are expected to lay out a new stage in their uncertain relationship on Thursday, one that is likely to see them formally call off a plan to merge after talks between the two Japanese automakers foundered.

The pair, which are also due to report quarterly earnings, have seen their industry and the key China market upended by the rapid rise of Chinese electric-vehicle makers such as BYD, and both are facing the prospect of tariffs in the United States, another major market.

Nissan, Japan's third-largest automaker, backed out of $60 billion merger talks with larger rival Honda after negotiations were complicated by growing differences, including Honda proposing that Nissan become a subsidiary, sources have said.

Nissan is pushing ahead with a restructuring plan announced in November that includes cutting 9,000 jobs and reducing global capacity by 20%. It has yet to disclose details such as which locations will be affected.

Sources said in December that Nissan will need to further reduce its capacity in China, where it operates eight factories through its joint venture with Dongfeng Motor. It has already suspended production at its Changzhou plant as part of efforts to optimise operations.

Before announcing the merger discussions in December, Nissan and Honda had been holding separate talks on a technology collaboration, which they could outline the scope of on Thursday.

After backing away from merger talks, Nissan is now open to working with new partners, with Taiwan's Foxconn seen as one candidate, sources told Reuters last week.

Foxconn Chairman Young Liu said on Wednesday that its goal was to cooperate with Nissan, not acquire it.