Another consequence of the worsening Sino-Japanese relations: Japanese investment into China dropped by nearly half in the first six month of 2014, according to a new report by China’s Ministry of Commerce. As recently a 2012, Japanese investment posted growth of 16.3 percent, reaching $7.28 billion. The decline actually started last year, with a 4.3 percent drop.
Zhang Jifeng, director of the Japanese economy department in the Chinese Academy of Social Sciences, told the China Daily that Japan’s entrepreneurs are “waiting and watching.” He added: ”They’re profoundly aware of the connection between the political climate and their commercial performance [in China]. They don’t want to put their assets at risk.”
English: Yasukuni Shrine in Tokyo. (Photo credit: Wikipedia)
China and Japan are in a dispute over the ownership of the uninhabited Diaoyu Islands in the East China Sea. Japanese Prime Minister Shinzo Abe further angered Beijing in December when he visited Tokyo’s Yasukuni shrine, a temple that honors Japanese soldiers but also its war criminals. Earlier this month Japan’s cabinet passed a resolution reinterpreting its pacifist constitution so its military can defend its allies.
via With Tensions Rising, Japanese Investment in China Plummets – Businessweek.
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