SCMP says: “Jin Baisong, a researcher with the Chinese Academy of International Trade and Economic Co-operation under the Ministry of Commerce, told the China News Agency that Beijing might impose formal economic sanctions on Japan.
Singtao further quotes Jin’s words that economic and trade antagonism will certainly do harm to both countries due to the close economic reliance between the two countries, but China can better sustain the damages than Japan as Japan’s economy relies heavily on China. As soon as China begins its economic sanctions, there will be an economic crisis in Japan.
Singtao says that Jin Baisong stressed that strategic resources will be an effective economic “trump card” to contain Japan. For example, China may control its export of rare earth metals that are indispensable raw materials for Japan’s high-end manufacturing industries.
China is now Japan’s largest export market, absorbing 20.6% of Japan’s exports. Due to strong nationalism, Chinese people have already been buying less Japanese products. For example, in August sales of Japanese cars dropped 2% while total sales of cars in China rose 11%. Sales of Japanese electrical appliance also dropped sharply in Beijing, Shanghai and Guangzhou.
On the evening of September 11, China Comfort Travel, a travel giant with over 5,500 outlets all over China announced that it would immediately cease arrangement of travel to Japan. Its spokesman said that its decision to do so would undoubtedly harm its economic interests and even affect its staff’s income, but the sovereignty of the nation was above everything. In order to show Chinese people’s just indignation, the company would rather suffer loss in its interests.
- Six Chinese surveillance ships reach near islands disputed with Japan (chinadailymail.com)
- Chinese sanctions could inflict severe toll on Japan: researcher (wantchinatimes.com)
- Chinese protest Japan’s purchase of Diaoyu Islands (fmnnow.com)