Tuesday, October 16, 2012

Tensions Between China and Japan Flare: Japan Vulnerable

China warns US against involvement in island issue http://www3.nhk.or.jp/daily/english/20121015_30.html

[Excerpted] A Chinese Foreign Ministry spokesman has warned against the United States' becoming involved in an issue between Japan and China.

This came in response to a remark by a senior US official expressing understanding for Japan's moves on the Senkaku Islands in the East China Sea. The islands are controlled by Japan. China and Taiwan also claim them....

China Row Hangs Over Japanese GDP The Wall Street Journal by Chester Dawson and James T. Areddy October 12 http://online.wsj.com/article/SB10000872396390444657804578052331690080520.html

[Excerpted] The recent flare-up in a long-standing territorial dispute between China and Japan is emerging as a potential new threat to Japan's economy, broader regional growth and multinationals' global supply chains....
 
It also could undermine other trade-dependent Asian nations, such as South Korea, and eventually affect world-wide supplies of innumerable products made in China—many with Japanese subcomponents or with Japanese factory machine tools. That, in turn, may put a kink in supply chains and spur global inflation....
 
The biggest impact so far has been on sales of Japanese cars in China, which plummeted in September to half the levels of a year ago...
 
The immediate impact on China is more muted as only 8% of total Chinese exports go to Japan each year, driven by food and textiles—compared with the 20% of Japan's total exports bound for China, largely capital goods....
 

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