The China-Japan island dispute about the remote island located within the jurisdiction of both countries have businessmen fearing its negative economic impact. The conflict, widely expressing anti-Japanese hatred in China and forcing some Japanese car and electronics factories and shops to close down because of the riots, can have a significant impact in the market relations of both countries.
Japan and China continue to trade amidst the conflict. The trade worth between the two countries is around $345 billion. Because of the factory holidays because of the riots, companies who closed Chinese factories such as Panasonic and JVC fell in the Tokyo Stock Exchange.
The Japanese government has asked Beijing to protect Japanese-owned properties in China with adequate security and jurdisdiction.
Fujitsu Research Institute’s Martin Schulz states that the conflict can have a great negative impact in the whole world today if the situation is not properly resolved. Should the situation get out of hand, the two countries, dependent on each other for their economy, may see a collapse in their profits.
The Diaoyu (in China)/ Senkaku (in Japan) islands were said to be owned by China dating back hundreds of years from their dynasties. However, Japan states that it found the islands unmanned during the 18th century and have laid claim to it before a family purchased the islands. After the second World War, the U.S. returned the islands to Japan after relieving Okinawa of U.S. military presence.