Traders wary of crisis impact on a $345bn trade

china protest

Many Japanese companies have suspended operations in China after protestors attacked shops and car dealerships.

Incidences of violence have been reported across China over the disputed ownership of the Senkaku Islands and relations between the world’s second and third largest economies have hit their lowest point in decades.

Japanese business have also reportedly sent workers back home in fear that the protests could get out of hand after the Japan’s Beijing embassy was attacked by protestors waving Chinese flags and chanting ant-Japan slogans.

Toyota and Honda suffered damage from attacks on their factories and shut down temporarily to keep workers safe.

All five assembly plants of Honda Motor Corporation remained closed this week to adjust production due to impact of the protests on sales.

Honda’s China sales account for one-fifth of its global total while Toyota’s is about 10%.

Electronics giant Sony said it had suspended operations at two of the seven factories it operates in China.

The Japanese government has urged Beijing to do more to protect Japanese businesses, stressing that Japanese companies play a crucial role in the Chinese economy and employment.