Japan’s trade with China could take a hit as a dispute over islands in the East China Sea intensifies, according to multiple sources. The Japan National Tourism Agency predicts that Chinese tourists to Japan could drop by 20%, with some Chinese tour operators already cancelling trips, Bloomberg reported. Chinese travel agencies have signified a willingness to sacrifice commercial interest in order to express anger with Japan, which recently announced it bought the islands, known as Diaoyu in Chinese and Senkaku in Japanese, from a private Japanese owner. Nissan Motor Company Ltd (7201.TYO) also said the row has affected business, Reuters reported. China is Japan’s largest trading partner, with bilateral trade between the two countries hitting US$345 billion last year, up 14.3% from the year before.
Categories