The economic impact of the tension between China-Japan trade

These days a tension between China and Japan become more and more serious. As the territory dispute about Diaoyu or Senkaku Islands , a serious of anti-Japanese parades held everywhere in China, which give a big strike to the economic between two countries, as well as  a negative impact on the other supply chains of all products all over the world from the iPad to cars.


Japan's newspaper 'Sankei Shimbun' reported that on the 19th day of the anniversary of the 9.18 Incident, including Toyota and other major Japanese enterprises in China are "out of business". Part of the enterprise is still in the non-normal operating condition. . The Japanese Economic News said that even if the  Japanese companies in China  return to normal business, in the state of consciousness of the anti-Japanese, can hardly expect to expand sales.

The Sino-Japanese dispute, China's higher market-dependent loss of Japanese automobiles, tourism, retail and other industries. According to Japanese Economic News , China is an indispensable market to  Japanese car manufacturers such as  Toyota. The stock prices of these companies fell about 1% to 4%. Japan tourism is also greatly affected. One of the Japan's largest airlines, ANA was forced to cancle about 15000 tickets sold in China and 3,800 sold in Japan. The Loss of the Japanese retail enterprises in China is considerable as well. The AEON Stores closed 30 of its 35 stores in China and the destruction in the anti-Japanese demonstrations in one of these stores estimated loss of 2.5 billion yen. The  rebuilding requires 3 months.



According to the Wall Street Journal,it is still controversial to said which side is more affected by this anti-Japanese product activity. But it is certain that the loss of the Chinese market will be a great blow to the Japanese company's profitability.

In addition, the Sino-Japanese dispute also spread to neighboring countries. Austria "messenger" that day "Cold War situation has alerted the EU. The EU is closely watching the impact of global trade and economy of the Sino-Japanese conflict. The Wall Street Journal said, Sino-Japanese trade war, will not be affected by just these two countries. Sino-Japanese economic relations are also involved in the company of countries such as the United States, South Korea, Malaysia, Germany and Thailand. If economic sanctions against Japan, Japan may experience a "lost decade", thereby affecting the global economic situation. Ultimately it will affect the global economic recovery.