China protests: Japanese firms suspend some operations
The BBC's Martin Patience: ''The protests show that Beijing must do something to solve this dispute''
Some
of Japan's biggest firms have suspended operations at some factories in
China as safety concerns grow amid violent anti-Japan protests.
Panasonic said its factory in Qingdao would remain shut until
18 September, while Canon has also temporarily suspended operations at
three plants.Honda is suspending production at four factories for the next two days.
The attacks are part of wider protests that have spread across China and hurt other firms, including carmaker Toyota.
They started after Japan said it had agreed a deal to buy a chain of disputed islands in the East China Sea from their private Japanese owner.
China, Japan and Taiwan all claim sovereignty over the islands.
Camera maker Canon's affected factories are at Zhuhai, Zhongshan and Suzhou.
Honda's spokeswoman, Natsuno Asanuma, told Reuters the company was suspending production at two factories each in the southern China city of Guangzhou and the central city of Wuhan.
A spokesperson for electronics giant Panasonic told the BBC that the firm would continue to monitor the situation over the next two days.
Burning flags
The disputed islands, known as Diaoyu in China and Senkaku in Japan, are uninhabited but resource-rich.
They have been a contentious issue between the two countries, and were the focus of a major diplomatic row between them in 2010.
The dispute flared up again over the weekend after Tokyo said it had agreed to purchase them, leading to thousands of protesters taking to the streets in various parts of China.
During the demonstrations, protesters burnt Japanese flags and targeted Japanese-made cars.
There have been reports of a Toyota dealership in China being damaged during the demonstrations.
The attacks on some Japanese businesses have raised fears about the impact of the protests on Japanese investment in China.
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Japan-China disputed islands
- The archipelago consists of five islands and three reefs
- Japan, China and Taiwan claim them; they are controlled by Japan and form part of Okinawa prefecture
- The Japanese government signed a deal in September 2012 to purchase three islands from Japanese businessman Kunioki Kurihara, who used to rent them out to the Japanese state
Analysts said that China, which
was known for being a low-cost manufacturing base, has seen a steady
rise in labour costs in recent times, negating a big advantage it had on
other countries in the region.
They said that the protests could result in some Japanese firms starting to look beyond China for further expansion."They might want to consider expanding manufacturing operations in Thailand or in other nations that are more welcoming towards Japanese investment," said Shaun Rein of China Market Research Group.
He warned that such moves might have an impact on China's economic growth and also on the overall trade ties between Asia's two biggest economies.
"The trade relations are going to be damaged by the continuing protests, for sure."
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