Diaoyu Island is a big political event happened this year.Diaoyu Island incident is a historical boundary issue. Chinese and Japanese argued about this problem over so many years. Japanese government announced that they bought Diaoyu Island from the “owner” of this island and some government officials boarded the island in August this year. Because of these many Chinese people began to boycott Japanese goods, even some people use violence actions to boycott Japanese. Many Japanese factories in China closed because of this. In this month, almost all the travel agencies stop the travel plans toJapan. A part of Japanese economic has been influence by these actions. It’s not good forJapanto lose a big market like China. If the actions of boycott Japanese will last for a long time, these must damage some part ofJapan’s economy.

Economy and politics are closely linked. Economy can affect the government’s policy and politics can also reaction of the countries’ economy.

picture from:http://www.sopopo.com/news/gamenews/8781.html