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Islands dispute hurts investment, trade with Japan
Islands dispute hurts investment, trade with Japan
CHINA - The territorial dispute over the Diaoyu Islands has hurt Japanese investment in China and bilateral trade between the countries, according to central government commerce authorities.
In September, Japanese investment in China and bilateral trade saw a slowdown, which Ministry of Commerce spokesman Shen Danyang described at a briefing on Friday as "to some degree" related to the Japanese government's "purchase" of the disputed islands.
But "as long as Japan corrects its wrongdoings, there is actually great room for the long-term development of Sino-Japanese economic and trade relations," and China believes that bilateral trade should enjoy a healthy future, the spokesman said.
The first nine months saw Japanese investment in China total $5.62 billion, an increase of 17 per cent year-on-year, but at a much slower speed than its expansion in 2011, which the ministry reported as 50 per cent.
In the meantime, bilateral trade saw a net decrease of 1.8 per cent to $248.7 billion.
In September alone, trade went down as much as 4.5 per cent year-on-year, when China saw an increase of 2.2 per cent in its exports to Japan and a decrease of 9.6 per cent in imports, according to the General Administration of Customs.
Zhang Jianping, a researcher from the Institute for International Economic Research under the National Development Reform Commission, envisaged that "the negative effect of the island dispute will be reflected in Japan's investment in China from the following months into the next year."
China is Japan's largest trade partner and Japan is China's second largest source of foreign direct investment.
"The decrease in Japan's investment in China will probably also harm Japan's own economy through a decline in exports and corporate profits, while it would add pressure to China's slowdown, affecting its industrial job market and domestic consumption," he said.
Islands dispute hurts investment, trade with Japan
CHINA - The territorial dispute over the Diaoyu Islands has hurt Japanese investment in China and bilateral trade between the countries, according to central government commerce authorities.
In September, Japanese investment in China and bilateral trade saw a slowdown, which Ministry of Commerce spokesman Shen Danyang described at a briefing on Friday as "to some degree" related to the Japanese government's "purchase" of the disputed islands.
But "as long as Japan corrects its wrongdoings, there is actually great room for the long-term development of Sino-Japanese economic and trade relations," and China believes that bilateral trade should enjoy a healthy future, the spokesman said.
The first nine months saw Japanese investment in China total $5.62 billion, an increase of 17 per cent year-on-year, but at a much slower speed than its expansion in 2011, which the ministry reported as 50 per cent.
In the meantime, bilateral trade saw a net decrease of 1.8 per cent to $248.7 billion.
In September alone, trade went down as much as 4.5 per cent year-on-year, when China saw an increase of 2.2 per cent in its exports to Japan and a decrease of 9.6 per cent in imports, according to the General Administration of Customs.
Zhang Jianping, a researcher from the Institute for International Economic Research under the National Development Reform Commission, envisaged that "the negative effect of the island dispute will be reflected in Japan's investment in China from the following months into the next year."
China is Japan's largest trade partner and Japan is China's second largest source of foreign direct investment.
"The decrease in Japan's investment in China will probably also harm Japan's own economy through a decline in exports and corporate profits, while it would add pressure to China's slowdown, affecting its industrial job market and domestic consumption," he said.

