Japanese businesses tread carefully as protests "die down"

Featured - September 20th, 2012

Japanese companies are treading carefully after being forced to halt operations amid mounting tensions in Beijing.

According to the Financial Times, anti-Japanese protests across China seem to be dying down. Chinese authorities placed heavy security around the Japanese embassy and took further measures to reign in further protests. Several Japanese manufacturers, such as Nissan, Mitsubishi Motor, Mazda and Sony resumed operations in factories. Uniqlo and 7-11 have also reopened stores.

Deputy Japanese Prime Minister Katsuya Okada reiterated the urgency for both countries to make efforts “calmly and level-headedly to improve on the current situation”.

“When it comes to looting and destroying Japanese businesses, we certainly hope that measures will be taken to deter such activities. Otherwise, there is no doubt that the reaction of the global community, including investors, will become even more stern towards China,” Mr. Okada added.

Chinese patriots took to the street earlier this week, attacking Japanese stores and trashing the Japanese embassy in Beijing, after the Japanese government announced the purchase of the Senkaku Islands. China announced that it would deploy around 1,000 vessels to waters near the disputed islands. Tensions have steadily mounted, placing a strain on economic relations and raising risks of spilling over into war, a warning expressed by US Defense Secretary Leon Panetta.