Political tensions behind China-Japan economic issues: Beijing

So the question is, are the islands worth it China? What's more important, getting islands you haven't had control of for over a century, or business right now?

So it is clear that both countries play politics with the economy. Maybe a certain country can stop pretending like it is just a harmless businessman.

This is a wake up call for both Governments to set up a commission that will focus once and for all through binding arbitration to end this poisonous hatred and resentment festering for decades. There has to be compromise in a number of areas. The next generation deserve a release from historical grievances.

Investment is down not due to (or just due to) political tensions. We get along fine with our Chinese partners. It is because Japanese companies have started to move to more price/wage competitive countries. Especially in SE Asia. And sometimes the plan Japan planned - China made - return to Japan to sell just takes too long in the fast changing consumer market. So some manufacturing is returning to Japan. Foreign companies are also increasing Tokyo operations because young talent won't go to China because of the pollution. Another loss for China.

Japan, like other developed economies in the west will learn the hard way that investing in China only feed the monster that one day will turn against. Trade is when goods are interchanged and fair trade is when it is balanced for mutual benefit. China mostly only buys raw materials. When it buys special products, it seek the way to copy and falsify and China only export cheap labor. That is anything but trade. At the time they talk about "peace", their budget for the military is the biggest in its long history, and Japan need - for the first time since WWII - to spend billions to counteract this. So the bottom line, where is the benefit of dealing with China?

@ EyeOfTheCat. 100% correct.

"Japan’s invasion of China during the 1930s and 1940s"

Big mistake.

"Japanese official figures show the country had a record 5.79 trillion yen trade deficit with China last year"

I can believe that. Almost all the clothing I buy and almost everything at the 100 yen shops in Japan is made in China.

Oh boy.....this REALLY scares me about the health of China's economy.......could trigger next global recession!

The article and comments papers over the role of ordinary Japanese companies as investors. Their rational reaction to China's stoking hatred of Japan is to increase their risk premiums. Beyond a certain point (like China repossessing freight ships) it just doesn't pay at all for most businesses that aren't politically connected at the highest levels to stay in Japan. They might maintain their investments but new investments face a bigger hurdle.

The reporter is joking? and the quotes selected are a joke?

"Japan’s nationalist Prime Minister"

Is that a joke by the reporter ? I mean compared to China, not even in the same league when it comes to nationalism.

Then as for the spokesman quotes trying find excuses for the lack of interest in their country: “The Japanese yen has depreciated sharply in recent years and the foreign exchange rate of the yen has been very volatile over the long run, therefore the divergence between statistics in yen and those in the dollar was rather big.”

wrong in recent years it is getting stronger as countries recover since the drop in 2007, wrong(heard of the carry trade?) and final point is meaningless.

"Japan should also “continue to make efforts to improve bilateral relations" "“take concrete actions to implement” an agreement which paved the way for a meeting"

wrong again, clearly China has been the one stopping meetings whereas Japan has long been pursing dialogue.

basically joke article

Don't know about the economy but Chinese tourist are literally visiting Japan by the plane load. I don't think there is a single day without hearing Chinese in Shinjyuku, Shibuya, Akihabara, etc.

"Political tensions are partly to blame for Japanese investment in China recording its biggest fall for almost a quarter of a century, Beijing’s commerce ministry said Thursday."

That is correct. Political tensions that China is unilaterally creating by ignoring the 1972 Sino-Japanese Treaty of Friendship and harping on it's WWII fixation. Oh and trying to steal a part of Okinawa as well.