China and Japan’s worst diplomatic crisis since 2005 is putting at risk a trade relationship that’s tripled in the past decade to more than $340 billion. Toyota Motor Corp. (7203), Honda Motor Co. (7267) and Panasonic Corp. (6752) reported damage to their operations in China as thousands marched in more than a dozen cities yesterday after Japan last week said it would purchase islands claimed by both countries. Protesters called for boycotts of Japanese goods and in some instances smashed store fronts and cars.
Tensions between China and Japan further complicate policy makers’ efforts to fortify growth in Asia’s biggest economies as the European debt crisis saps demand for exports. Panasonic and Canon Inc. (7751) today said they’re shutting some plants in China through tomorrow and the China Automobile Dealers Association said the protests will hurt sellers of Toyota, Honda and Nissan Motor Co. cars in China more than Japan’s March 2011 earthquake.
looking beyond borders 