Japan stands to lose a lot from Diaoyus dispute

Japan's exports to China dropped 14.1 percent in September, with its overall trade figures for that month the worst in more than 30 years, says an article in People's Daily. Excerpts:

Experts say if diplomatic conflicts continue, Japan's economy will be unavoidably enter a serious period of decline, likely to trigger a recession.

Japan's "purchase" of China's Diaoyu Islands has stirred strong sentiment among Chinese and led to a boycott of Japanese products. The remarkable decline in Japanese car sales in China proves Japanese companies are being hit hard by wrongdoings by that nation's politicians.

Travel between the two countries has also been affected, with more than 60,000 air tickets cancelled so far. The number of Chinese tourists to Japan has dropped by 70 percent since the start of the stand-off.

Even if Japanese enterprises   withdraw from China, companies from other countries will quickly fill the gap. Japanese car sales dropped 40.8 percent in China in September, while sales of cars made by companies from Germany, the United States, South Korea and France increased by 13.8 percent, 15.1 percent, 9.4 percent and 9.2 percent respectively during the same period.

China faces a daunting task to upgrade its industrial structures and transform its economic growth models. It will take this opportunity to increase its innovative input to replace Japanese technology as fast as possible. Japan’s shameless and irresponsible actions only unite the whole Chinese nation to build the country stronger.

China is, and will be, one of the most important markets in the world. If Japanese politicians continue their tricks and escalate the crisis, Japan will finally lose the whole Chinese market.