Japanese firms shut China plants; US urges calm in East China Sea row

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Agencies:  Shanghai, Sep 17 2012, 12:32 IST
Anti-Japan protest.jpg
Major Japanese firms have temporarily shut factories and offices in China after angry protests flared across the country, the result of a territorial dispute that has triggered one of China's worst outbreaks of anti-Japan sentiment in decades.

The row between Japan and China, over a group of uninhabited islets in the East China Sea, has led to violent attacks on well-known Japanese businesses such as carmakers Toyota and Honda, forcing frightened expatriates into hiding and sending relations between Asia's two biggest economies into crisis.

Ratcheting up tensions further on Monday, Chinese state media warned Japan it could suffer another lost decade if trade ties soured. Japan counted China as its top trade partner last year, with total two-way trade of more than $340 billion.

I'm not going out today and I've asked my Chinese boyfriend to be with me all day tomorrow, said Sayo Morimoto, a 29-year-old Japanese graduate student at a university in Shenzhen.

Protests broke out across dozens of Chinese cities at the weekend, some violent, in response to the Japanese government's decision last week to buy some of the disputed islands from a private Japanese owner. The move incensed Beijing.

The protests focused mainly on Japanese diplomatic missions but also targeted shops, restaurants and car dealerships in at least five cities. Toyota and Honda reported arson attacks had badly damaged their stores in Qingdao.

Japanese electronics group Panasonic said one of its plants had been sabotaged by Chinese workers and would remain closed through Tuesday -- a memorial day in China when

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Reader's Comments (1)| Post a Comment

India would be happy to welcome more japanese factories soon

Raoul Ciao | 17-Sep-2012Reply | Forward
Japan shd derisk their businesses and start putting up backup plants for everything they set up overseas plants, by looking at India focused strategy as a 10% or 20% of their China investments. Certain states like Gujarat, Tamil nadu, Maharashtra, will welcome them with open arms. if they start planning now, it would be possible to realistically build a bulwark against an aggressive country which might want to harm japan economically by hammering away at their investments in their lands. Spread your risk,even if it means going to a traditionally not-so-infra well developed country like India, where political will now at state level also supports such ventures.

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