Japan’s economy has been under the spotlight ever since their relations with China deteriorated several months ago. The country relies heavily on China; they have invested 6 billion dollars into China in the last year and have almost 30 000 firms located in the company. Many of these firms’ sales have gone way down due to what has transpired in the last few months. Some companies have decided to keep pressing in China despite diminishing profits but most are beginning to back out. This makes me wonder if China will still be a hotbed for production 20 years down the road. The Chinese vandals may have done more damage to their country than first thought. Their country known to house production factories for many multinational supply chains, may be gradually losing that reputation due to wages rising, the economy slowing, and these recent stirrings with the Japanese.
I think that the Chinese have really shot themselves in the foot with this. They have not only damaged relations with Japan on a political scale they have damaged relations on an economic scale as well. For China to preserve their status in the global economy they cannot do anything more to hurt their already sore standing.
http://www.economist.com/news/business/21564891-businesses-struggle-contain-fallout-diplomatic-crisis