Japanese exports to China fall amid tensions

Data compiled by Japan’s Finance Ministry showed Japanese exports to China fell 14% year-on-year in September amid a dispute over islands in the East China Sea, The Wall Street Journal reported. The decrease was faster than in August, when exports fell 9.9% year-on-year, and the largest decline since January, figures released Monday show. Prominent Japanese brands have suffered most from the spread of anti-Japanese sentiment in China. Car exports were the worst hit, decreasing 44.5% annually, while Japanese cosmetics manufacturer Shiseido (4911.TYO, SHD.FRA) suspended operations at several hundred outlets. Exports of general machinery also fell 29.1%. “If this problem continues into early next year … an economic recession would be unavoidable in Japan,” said Ryutaro Kono, chief economist at BNP Paribas (BNP.EPA, BNP.BIT).