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Japanese Companies Suspend Operation in China amid Anti-Japan Protest

Several Japanese businesses have shut down their plants and stores in China this week in the wake of the widespread protests since the weekend. Canon suspended operation at three of its four plants on Monday. Panasonic also followed the same course, shutting down three plants in Guangdong province after its plant in Qingdao was set on fire by anti-Japan protesters on Saturday.Japanese apparel retailer, Uniqlo, closes 19 outlets around the country on Tuesday. It had already closed seven stores on Monday.In addition to the temporary operations shut down, the escalating tension over the Diaoyu, or Senkaku Islands also affected business plans. Japanese electronics maker Sharp Corp. had planned a large-scale celebration to commemorate its 100th anniversary on September 8th in Shanghai, but senior executives called a stop to those plans.The territorial dispute between China and Japan puts at risk billions of dollars in investments. It could also hurt trade ties, causing mutual disruption for Asia’s two largest economies.

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