Japanese Businesses Shuttering Chinese Facilities As Mainland Anger Spreads

Tyler Durden's picture

When you have central planners printing inverse-wealth (because money printing dilution by definition means less wealth for everyone), who needs that cornerstone of old school economics: trade. Certainly not Japan (which has been diluting its futures to prosperity for the past 30 years and somehow failing each and every time) and China, both of which are now starting to feel the consequences of the collapse in political relations as a result of the senseless spat of the Senkaku Islands (recorded in its full visual glory here). As the NYT reports, "major Japanese companies closed factories in China and urged expatriate workers to stay indoors Monday, after angry protests flared over a territorial dispute, which threatened to hurt trade ties between the two biggest Asian economies." What does the idiotic escalation in unprovoked Japanese tensions over a rock in the East China Sea (note: not West Japan Sea) for the bottom line of Japan? In a word: Lots.

"Increasing tensions further Monday, the Chinese state media warned Japan that it could suffer another “lost decade” if trade ties soured. China and Japan generated two-way trade worth $345 billion last year, and China is the biggest single trading partner of Japan. Protests broke out across dozens of Chinese cities over the weekend, some violent, in response to the Japanese government’s decision last week to buy some of the disputed islands from a private Japanese owner."

To summarize: in the past week alone, Japan has already suffered about $7 billion in lost benefit from trade as the trade relations between the two countries have frozen. But at least Japan's nationalistic pride is content: after all it managed to put up its flag on some completely meaningless island in the middle of nowhere, containing zero natural resources. Luckily for everyone, the central planners who are now in charge of everything, have a much better grasp on things.

More from the NYT:

The protests focused mainly on Japanese diplomatic missions but also struck shops, restaurants and car dealerships in at least five cities. Toyota and Honda reported that arson attacks had badly damaged their stores in Qingdao.


However, Toyota said that its Chinese factories and offices were operating normally Monday and that it had not called its Japanese employees home.


The Japanese electronics group Panasonic said that one of its plants had been sabotaged by Chinese workers and would remain closed through Tuesday, which is a memorial day in China to mark the 1931 occupation by Japan of parts of the mainland.


The Japanese electronics firm Canon stopped production at three of its four Chinese factories Monday and Tuesday, citing concerns over employees’ safety, according to Japanese media reports. All Nippon Airways also reported a rise in cancelations on Japan-bound flights from China.


The dispute also hit shares of Japanese retailers listed in Hong Kong on Monday, with the department store operator Aeon Stores (Hong Kong) falling to a seven-month low.


“All Japan-related shares are under selling pressure,” said Andrew To, a research director from Emperor Capital.


As Japan is among China’s largest trade partners, any harm to business and investment ties would be bad for both economies at a time when China faces a slowdown.

Naturally, Pax Americana is threatened if something, somewhere in the world is in danger of no longer conforming to the status quo:

Mr. Panetta said that the United States would stand by its security treaty obligations to Japan, but would not take sides in the row, and urged both sides to exercise calm and restraint.


It is in everybody’s interest “for Japan and China to maintain good relations and to find a way to avoid further escalation,” he said in Tokyo.

And while we are confident that Japan will promptly retract its neo-imperialistic ambitions especially versus an opponent it has no chance against, a far more troubling development is how China will react when food prices across the mainland soar once hot money flows can find no more parking spots in the US, whose economic collapse will eventually catch up with the farce that is the market, and reallocate toward China. How soon until we see the same Chinese demonstrations as targeting Japan, only this time focusing on the central printer in the subbasement of the Marriner Eccles building?

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Oh regional Indian's picture

Well, it sure seems like the prelude to war I'm afraid. All around.

Rather obvious, clumsy but inescapable too, like the blind fist of a love crazed Godzilla.




insanelysane's picture

But how does that work?  Is the US still Japan's military?  So we would have to go to war against the makers of Apple products??  That sounds so un-American.  The US military attacking Apple???

Oh regional Indian's picture

Isn't that insanelyinsane, insanelysane?



Precious's picture

Mass anti-Japanese protests in China.  Chinese loot Rolex store.  Nikkei rallies 2 %.  



Manthong's picture

It’s not about a couple of dinky islands.. it’s about the collapse of trade between the second and soon to be fourth largest economy in the world and effects on capitol markets.

Are there any Japanese Archdukes visiting Guangdong province?

monkeyboy's picture

So does that mean I'll have to wait a little longer for my iPhone 5 to arrive?

Unbezahlbar's picture

Why wait? Just tape your iPhone 2 to your iPhone 4....that way you'll be ahead of the crowd.

monkeyboy's picture

Chinese Protests in action. Pics & Translation.


greensnacks's picture

Wow. Surprised this is so under-reported in our media.

Jethro's picture

The JDF is an extremely good military, and I'm pretty sure that it would punch well above it's weight in a committed military engagement.  They have good weaponry, very well trained personnel, and are professional.  They would put a hurtin' on anybody contemplating invading Japan. 

This is excellent timing on China's part, even if it might hurt them in the short term.  I'd be interested to see how froggy the Chinese population becomes, because all of their neighbors need to be watching this situation closely (India, Russia, Vietnam, etc).  If it becomes a scramble for resources, India needs to prepare.  The 60's and 70's seem to be playing out again everywhere else....

If the Chinese communist regime falls and is replaced by an ultra-Nationalist regime, anything could happen.

hedgeless_horseman's picture



"How soon until we see the same Chinese demonstrations as targeting Japan, only this time focusing on the central printer in the subbasement of the Marriner Eccles building?"

No worries...

Or maybe not so happy?


kaiserhoff's picture

Damn, that WB7 stuff must be contagious;) 

Vlad Tepid's picture

There's no reason for Japan to roll over as Tyler seems to think they will do.  Panetta basically just backstopped their attempts to stand up for their territorial integrity.

And you're right Jethro, JSDF is very good and could easily keep everything short of a D-Day landing off the Senkakus and it'sunlikely China will push the issue that far.  China has no leg to stand on, they worn't get support from the Russians on this and the US says they have Japan's back.  China is the one backed into a corner because they can't afford to launch a conflict that they would lose and they now MUSTplacate the hordes they've unleased on unsuspecting Chinese owned sushi shops and car dealerships China-wide.  Good move there, dumbo.

I've detected an odd strain of anti-Japanese sentiment here on ZH, all the more strange given the beat downs we regularly administer to our local PRC guest AnAnonymous) but Jethro makes a very good point or mentioning that the neighbors are all keeping an eye on this because they know that China is running around their periphery announcing ancient and specious claims trying to rattle territorial concessions from their neighbors.  Those who think Japan may be a pushover can have no doubts Russia's capabilities as a land power and the Holy Grail of Chinese (specious) claims is to Russian territory to the north and Russia knows it. China will get no support in this from their neighbors as they know that the Red Dragon is looking at them with it's other heads.

Unbezahlbar's picture

Panetta (aka Bankers rep) is there to tell the Japanese what the Rothchilds want them to do.

AnAnonymous's picture

If the Chinese communist regime falls and is replaced by an ultra-Nationalist regime, anything could happen.

It shall be an 'American' regime taking over.

All these demonstrations reek of 'Americanism'.

Reminds the 1980s in the US, save that in the US, a chinese was killed because US Americans thought he was a Japanese.

Harder for 'American' chinese to make that kind of mistakes...

icanhasbailout's picture

My very first thought was: when's the US' turn?


zorba THE GREEK's picture

 A rare black swan from the Senkaku Islands looks to be spreading a case of the bird flu

in Japan that may turn out to be worse than the Bubonic Plague. 

CheapBastard's picture

Japan has to do some thing to distract its masses away from the Fuki mess that is saturating their nation.

I guess those Japanese robotic dolls are nto enough distraction:


Vlad Tepid's picture

The Fukushima mess is saturating their nation?  You must be from that parallel dimension where the meltdown wasn't locally contained and cesium fallout was limited to a few scattered areas outside of the prefecture.

Or maybe it's the Japanese nation that's living in the parallel dimension, all 120 million, not one of whom has died of radiation effects. Quick someone warn them about the danger their not facing!

flattrader's picture

Not one of whom has died?  Because MSM hasn't broadcast it?

You're kidding right?

Do some reading.


And pletny sick...very. very sick.


Vlad Tepid's picture

I don't give a crap what the MSM says, bloody shills and liars to the last man.  I only know what I see with my own eyes.  Do I deny a disaster? No?  Do I deny sickness in the local area?  No?  Do I deny a multi-generational cleanup effort?  No.   But I am sick to death of idiots on ZH who have been saying here ever since 3-11:  "The Japanese race will be extinct!"  "The islands will be uninhabitable in 4 months!"  "Thousands will die!"  "This will be worse than Chernobyl."  And guess what?  None of that has happened.  I held my breath in fear for months over this and as f-----g incompetent as the government and TEPCO have been before and after, the worse effects have been contained and are being dealt with by heroic folks, some of whose lifespans will undoubtedly be shortened by their efforts.  You do realize that a year and a half after Chernobyl, thousands had died and continued to die apace?  That is not what's happening here.

I live in Japan hald the year, more if I can help it.  I know hundreds and hundreds of Japanese people from all regions of the country and I am fluent in Japanese.  No one has died, even in spite of the fact that the MSM has not reported anyone dying either.  People have cleared out of the danger zones, are avoiding any food that might be contaminated and getting on with their life, ZH "Fuck-you-Shima Echo Chamber Chorus" notwithstanding.  

I read plenty of vernacular reports warning about the dangers and the risks of the disaster going ahead. They are daunting and I vocally advocate for Japan to denuclearize ASAP in spite of the energy cruch that will result and most of my Japanese friends agree with me.  But every time I get on ZH, and article that has "Japan" in the topic list attracts a phalanx of people saying "Arnie Gunderson this" and "ENENews that".  Yes, I aware of the reportage.  And unlike 99% of this layer of the blogosphere, I've been to Fukushima and talk with the people there.  Breathless hysterics and the uninformed prohesying of the end of Japanese race and the *a-hyuk!* whole island moving to the empty Chinese cities is just plain stupid.  So junk away, me laddies.

flattrader's picture

Missed that report about 36% of the little kids in the area with thyroid nodules and cysts, eh?


Do you have any idea how unusual that is?

Just 0.8% of children in 2001 Japanese control group had thyroid cysts or nodules — 36% in Fukushima study


Where do you think THAT leads?

>>>I live in Japan hald the year, more if I can help it.<<<

I think you should move to Fukushima full-time...and good luck with that.

Vlad Tepid's picture

Your oh-so-third-grade death wish upon me and my family aside, I think living in Fukushima Prefecture is an extremely risky proposition and the government report clearly states as much, and I would never recommend that someone do so.  Many have decided to stay.  They may have unpleasant consequences in the future, we shall see.  None of that negates what I've said.  There are adverse effects to living in contaminated areas and no one has died.

I can see by the fact that you linked two ENENews articles after I questioned the citing of a single source ad infinitum that you are perhaps wedded to them or in their employ.  If I offended your attempt to gin up readership I apologize.

flattrader's picture

You also seem to think that those four reactors aren't still speweing?  Wishful thinking on your part.

You think radiation stops at municipal and prefecture borders?  Bad meteorology on your part.

You seem to think that radioactive bio-accumulation doesn't spread throughout the food chain and adds up?  Bad math on your part.

Or that another sizeable EQ won't bring what's left of those four reactor buildings still loaded with damaged and spent fuel down to the ground without notice?  Bad parenting on your part.




Plenty of news to read...much from English speaking Japanese.

Good luck with that.


OpenThePodBayDoorHAL's picture

You may want to watch this video about Chernobyl. The health effects took decades to emerge:


flattrader's picture


And because it doesn't happen overnight or it is far away or not in my part of Japan, there are no problems.

Narrated Photo Essay


...a different race of people...

And this guy takes his family back and forth to Japan...un-fucking-believable...

Gully Foyle's picture

Hmmm, does this mean the Chinese will be trashing their Anime and Manga?

I've seen Chinese animation and it's pretty shitty.

Matter of fact even the majority of their modern films are crappy. Koreans have taken the lead in Asian film.


No prelude to war.

Nobody wants to stop the flow of business.

China is warning the US, China and Russia I mean.

Right now they are slowing the tide of Northern Western world domination, with everything that entails.

It's like the three way shoot out in The Good the Bad and the Ugly, but in this case everybody with a gun thinks they are better off in charge or at least independent.

Then again China and India both have excess testosterone driven males they need to cull.

Maybe start paying attention when the Indians get involved.

Until then it's just more noise to tweak the discomfort level.


Oh regional Indian's picture

Gully, look at the speed at which Americans are being brought home on the pretext of thsi Anti-Islam video. THey can use it as an excuse.

Put that in the context of all else that is happening (seen BDI lately? Scary!!!).....

The great big "exercise" at sea in the ME....


I agree it's a chess game and subtle and not so subtle signals are being sent, but it all feels really heavy, dense and hair-triggery.


India is a US/Zio pawn. All the way, to be activated when needed.


Jethro's picture

ORI, I disagree that India is merely a pawn of the US.  Much for the same reason that India wasn't a pawn of Russia in the 50's and 60's.  Granted, the political leadership is typically extremely corrupt, but from what I witnessed in dealing with the families of Chief Ministers, etc, and the general population on a day to day basis....they are more nationalistic than to toe another country's line. 

pashley1411's picture

I definately in the "the local Chinese kid flexing his new muscles" camp.    How far are those islands from Taiwan, again?    

meatbag's picture

This is all about "flexing new muscles".  I have lived and worked in Asia for many years and I have never seen anything like this in China (and I am here and its still happening Tuesday morning).  Its very clear that this is not Communist Party propaganda, it is not staged, its not about oil, its not about US flase flags.   Just a few years ago, most Chinese were still struggling with subsistence to consider themselves able to seek anything resembling revenge or even chest pounding.   However, the last several years in China I have observed a dramatic change.  Lots of people have hit the sweet spot.  They have accumulated enough money to tell me "fuck you" I don't need your business.  Go back to where you came from.  We don't need outsiders help any longer.    That is what this is about.  While they just want Americans to go home, the want to barbecue the Japanese because of real or perceived events during WWII. 

Why this is happening in China right now is clear to me to be driven only by the fact that the common Chinese person finally has accumulated enough money that they are finished being anyone bitch and the first to go happens to be the Japanese.

What I can't explain is why the Japanese would provoke this right now.  Perhaps this is a US/NWO plan.  Perhaps  the people pulling the strings have realized that the time is ripe in China to unleash the pent up resentments of having to be a bitch to the developed world.  I don't know who is behind Japan's moves.  However, I can assure you that the Chinese government is not in control of anything here in China.  They are just going along for this ride and I am sure they have no idea where it will take them.

What worrisome is that the Chinese really are acting like kids.  They really are way over the top, its frightening to see just how easy it is from them to be whipped into a nationalistic frenzy.   It starts with the Japanese, but with the Chinese being so xenophobic, I am sure it will not stop with the Japanese.

Clearly high IQs and common sense do not have a correlation.

TPTB's picture

Like two deep sea octopus struggling to lay claim on a succulent lobster patch.

monkeyboy's picture

So does that mean I'll have to wait a little longer for my iPhone 5 to arrive?

Stuck on Zero's picture

As I said before ... a few hundred smart mines in the waters around the Senkakus will render them unusable by anyone for many years.  It could avert a war.

GetZeeGold's picture



Totally forgot about those guys.


The entire world seems to be a little ticked off this morning. Not sure why.



DeadFred's picture

My look at the markets right now sees an epic setup for a fall and we're going to get the full court press of bad news right now so all those capitulation long positions can be harvested. Obviously it's about more than the markets but the angst we're seeing all seems orchestrated. Yes there are massed protests in China but who thinks these are not organized by the government? And has anyone heard a rational explanation of why the Japanese thought this would be a good idea, anyone? Yes riots are happening over a video but how many of those rioters even knew this video existed until it was pointed out to them? Korans are burned all the time and anti-Islamic videos are a dime a dozen but this time they're getting major publicity. This is what it looks like when the sheep are getting sheared.

ParkAveFlasher's picture

Pluto in Capricorn squares Uranus in Aries.

Cathartes Aura's picture


whoa, I'm not the only one here who knows this, ha.

and Pluto, retrograde since April, goes direct tonight at 10pm PST, square Uranus exact. . .

the archetypes at work here, Pluto (death to old ways of being that prevent new growth) in Capricorn (belief systems made tangible, such as religion, governments, etc.) square (90dg = tension between conflicting ideas), Uranus (sudden events that change perception to include a wider point of view) in Aries (god of war). . .

what energy has been held back since April is unleashed as a force for massive, global change.  this is a multi-year archetype for global tension, necessary for outdated systems to crumble - burn back the fields to plant new growths. . .

(by the way, last time Pluto was in Capricorn, amrka fought a revolution & formed a constitution. or so the story goes. . .)

Whoa Dammit's picture

Isn't globalism fun? /s

GetZeeGold's picture



It's an E-ticket!



Boondocker's picture

+1 for old disney reference


killallthefiat's picture

Apparently the Chinese like to plant their flag on worthless islands too.  If the whole world united against China, especially in light of the fact that they are attemping to spend trillions in worthless US Fed notes, would the Chinese economic miracle stand a chance.



insanelysane's picture

We can't let anything hurt Apple's stock price.

eigenvalue's picture

No, the Chinese are not interested in the island itself. They are interested in oil and natural gas reserves around the island.

bugfixx's picture

Exactly.  It's always about oil.  US State Dept. spokesperson Vicki Nuland says the US "doesn't hava a position on Senkaku Islands sovereignty."  Didn't the First Gulf War start because of a similar gaffe over Kuwait?


insanelysane's picture

Wrong, wrong, wrong.  Oil is so 1900s.  Solar is the energy source of the 2000s and China is just trying to capture a little of the Rising Sun.

Sofa King Confused's picture

China needs to just buy the islands from Japan.  Give Japan the 1 trillion or so of US ( soon to be worth a lot less ) reserves that it is holding.  Problem solved


Did China really think they would get paid back one day???  HA HA

meatbag's picture

This is about pride.  The oil was the reason to draw both of them to the islands, but it is the pride that is fueling the conflict.