China Warns Island Dispute Could Hurt Trade Ties

A group of disputed islands known as Senkaku in Japan and Diaoyu in China is seen from the city government of Tokyo's survey vessel in the East China Sea, September 2, 2012.

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William Ide

September 13, 2012

BEIJING — China has warned Japan its decision to purchase disputed islands in the East China Sea could have an impact on trade between the two Asian economies.

The last time China and Japan got into a dispute about the islands in the East China Sea, Beijing responded by blocking the export of a crucial high-tech resource known as rare earths.

It is unclear what actions it may take this time, but Chinese officials are already making it clear that there will be repercussions if Japan does not back down. The islands have been owned for decades by a Japanese family and are reportedly being sold to Japan's government for about $26 million.

Jiang Zengwei, China’s vice minister of commerce, says with Japan’s so-called purchase of the islands, it will be hard to avoid any negative consequences for economic and trade ties between the two countries.

The Senkaku/Diaoyu Islands

Calls are growing for Chinese consumers to boycott Japanese goods and cancel travel plans to the country.

Jiang hinted that the Chinese government would not see anything wrong with the peaceful boycott of Japanese goods.

Jiang says that, although he has not seen any actions by Chinese consumers in response to the Japanese violation of Chinese territorial sovereignty, he thinks that would be their right to express their views and stance in a reasonable manner.

China is Japan’s largest trading partner, and trade between the two countries accounts for more than 20 percent of Tokyo’s external trade, analysts say.

Trade grew to a record $345 billion last year alone.

Last week, a Japanese motor executive said rising tensions between the two countries were having an impact on business.

But Richard Broinowski, a former Australian diplomat to Japan and South Korea says it is hard to imagine the dispute will have a major impact on the two countries trading relations.

Japan and China's Disputed Islands

Known as Senkaku in Japanese and Diaoyu in Chinese
Uninhabited archipelago of 8 islands
Located in gas-rich area and surrounded by rich fishing grounds
The islands have a land area of about 6 square kilometers

“There will be a fair bit of blather, a fair bit of hot air, some indignation, perhaps some kind of trade rebukes at the margin, but I do not think it will have very much to do with the enormously intricate and immensely valuable bilateral trade between China and Japan,” Broinowski said.

Meanwhile, protests continue outside the Japanese embassy in Beijing, where police allowed groups of several dozen demonstrators shouting slogans and singing the Chinese national anthem to pass by the embassy.

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Comment Sorting

Comment on this forum (47)

Comments page of 2

by: Zongyang li from: Beijing

September 15, 2012 12:04 AM

actually,Japanese are once chinese,they moved to these four small islands in Qin dynasty,that's how Japan came into being .
so~the diaoyu island is yours,but you japan is mine!

by: task101 from: USA

September 14, 2012 11:10 PM

Chinese should learn true history.
Senkaku has been controlled by Japan since 1895 and it is Japanese territory.
Chinese should condemn their corrupt government bfr condemning Japan.

by: almoros idriss from: cameroon

September 14, 2012 11:45 AM

Chinese Leaders have to send peaceful, regional stablity, unity and more itegration brilliant messages to all South East Asians rather than the continued threats! China has more to lead, invest and share more regional resources and great markets better and more valued thank those remote rocks or islands! Whenever you Don't get it, SHARE it!

In Response

by: christina from: China

September 15, 2012 9:29 AM

Why does China have to share this island with other country,especially Japan!This island belongs to our chinese people since long long time ago,when the dignity of your mother land is offended by other countries,can you say these words?When your country is threatened by other country(especially the country which killed thousands of millions of people in your country in the world war 2nd),what would you do?Of course,we do not want to fight with others,and I don not try to accuse Japan of the massacre,we just want peace ,but if other countries try to annoy us,we won't be afraid!

In Response

by: task101 from: USA

September 14, 2012 11:44 PM

Chinese r uneduceted ppl who didnt know about Senkaku until recently.
Chinese govt agitated their ppl to make protest.
Chinese ppl should condemn their corrupt govt bfr condemning Japan.

In Response

by: Anonymous

September 14, 2012 1:25 PM

when the land of your country are sold by another neighbour, can you still say : come , come to my house, this house is also yours.
how generous you are! if you think you have to share your money, your belongings with an stranger, totally stranger!

by: jonathan huang from: canada

September 14, 2012 9:17 AM

China is peace loving country. Chinese want a peace environment for developing, that is why we dont want to war we want to keep all disputes to next generation but it is Japan keep provoking China. It was Japan started those stupid island selling issue. BTW, China only has land border dispute with India and Bhutan, and we are negotiating with Bhutan since we have very good relation now. We have disputes on South China sea and east China sea, but China dont want to escalate those disputes if all relevant countries can respect China proposed Code of conduct. China is a growing superpower, having war is not of our interest, at least not now, so stop provoking us, or you will get hurt.

In Response

by: sudeep paralkar from: india

September 14, 2012 11:19 AM

China's aspiration to be superpower was because of heavy investments and imports by USA & Japan since 1980s.Now demographics and economics are in favour of China the great talk of super power has started.It is baffling the China has such a short memory.I and rest of asian brothers will agree that China is flexing its muscle.It has already hurt other nations.The language of CODE OF CONDUCT is signs of flexing muscles and not of peace loving nation.

by: Kim from: Sydney

September 14, 2012 9:06 AM

I think we as human in this world should not always look at the past and anger remain in heart because before this world classified as countries, we were living in groups and there were always war and killing. Now it's country and country war and killing. Next may be world and world war and killing. Why can't we all find peace and sharing the joy and happiness instead of creating war and killing. Every body in this world is responsible for creating peace and if we all working together then this world will have a peacful place. I wish China and Japan can see each other as family. Everyone do make mistake big or small and if, we fogive and forget then we all will live in a peaceful world.

In Response

by: Anonymous from: Germany

September 14, 2012 1:31 PM

i agree with you. in this case, if Japan did not provoke China for purchasing the disputed island. this world will be much more peaceful..
it is not China, it IS Japan who started this stupid thing. It is a political battle in Japan who want to gain more support and transfer the attention of the Janpanese for their recession.

by: sudeep paralkar from: India

September 14, 2012 6:07 AM

China is having border / island disputes with India,Vietnam,Philippines,Malaysia,Indonesia,Japan,Brunei,.The long list indeed.China needs to respect its neighbhours.It is indeed strange that nation with so many disputes should be part of secuirty council.China is growing its military muscle at alarming pace.Spending close 100 Billion USD per annum.South China Sea Conflict has potential to turn into major war in 21st Century if issues are not resolved in right time.

In Response

by: christina from: china

September 15, 2012 10:26 AM

I don't mean to offend you but,actually,China is doing what she should do.get back to read the history,what our goverment did was trying to protect our countrie's territory and her sovereignty,may be you don't know the history,then please get back to read CAIRO DECLARATION,and please respect the truth.As for India,Philippines and other countries,I do not want to argue with you,but don't you think it's really strange?China should develop her own economy now,why do many countries come to trouble us at the same time?may be you want to say china is aggresive,but in reverse,I do think it's a conspiracy which aims to china.what i do want to emphasize is that,we want peace,we want our own territory and sovereignty,we want you to treat china in a fair way! Diaoyu island belongs toCHINA!!!

In Response

by: Tom from: Canada

September 14, 2012 2:59 PM

Just reminder, USA spent 800 Billions USD a year on their military. 8 times more than china.
I bet so do India want to spend more on their military too but they can not affort to do so.
Go back to 19 centry how many western countries came to robbed china because china could not defence itself. Today China learned the lession by increase its military.

In Response

by: Aeris from: Henan

September 14, 2012 9:38 AM

Japan is also having borderland disputes with almost all of its neighbors. So what you call evidence is clearly ridiculous. History is created by people and spreaded also by us intelligent creatures, which means everyone can have his or her own opinion and illustration. I, support my nation.

The only great pity is that Japan is still not courageous enough to admit the crimes it commited in World War II to other Asian countries, like military raping. I hate smoking first of all, the same as raping. Nevertheless, it is not directly related to the recent island dispute. But it's obviously different when Chinese people are faced with two border disputes, China vs Phillipines and China vs Japan. The latter one indubitably causes our people to be more aggressive.

by: Anonymous

September 14, 2012 3:22 AM

The Diaoyu Islands are an integral part of Chinese territory. Japanese aggressed our Chinese ever,now they want to aggresse again .That can't be allowed.

by: joe from: USA

September 14, 2012 2:20 AM

It seems the poor Japanese people forget Japanese rap and kill a million people in other country, shame on rapper and killer.

by: IVAN from: China

September 14, 2012 1:18 AM

territorial expansion has long being Japan’s militaristic ideal ！its not China’s fault. Living on a small island faced with earthquakes and tsunamis ，Japs feel compelled to expand its territory

by: lulei from: melbourne

September 13, 2012 8:18 PM

I've been following VOA news for ages, but im aware that u do lack of fairness paticularly to Chinese culture. In your mind, u do understand who really owns the islands, but deny it delibrately.Or, If u dont know the truth, please button your lips without making any unfair noises. Im confused why American media always critise Chinese nation and its people by twisting the truth. I feel extremely disappionted whenver i read the news here coz you re always dessiminating adverse and negetive information about China by ignoring the facts. Please respect the facts and present your stance as a civilized giant country rather than imposing your Americal ideology on the rest of the world. Stop feeling superior to other nations, stop puting your noses evey corner of the earth. Be fair, respectful, cilvilized. we are not reluctant to give our affection and respect to a real nation.

In Response

by: Zongyang Li from: beijing

September 14, 2012 11:45 PM

perfectly right

In Response

by: Alex from: Usa

September 14, 2012 10:11 PM

You made a great point.

In Response

by: Lily from: Germany

September 14, 2012 1:36 PM

you are my hero, Lulei

In Response

by: John from: Japan

September 14, 2012 7:40 AM

I wonder if you are missing a point.
I mean VOA has two sides article from either countries view.
If you want to look for chinese side article in VOA, the article has already uploaded. Why don't you check it out?
Then, VOA hasn't twisting the truth, I guess.
Do you have any evidence about twisting the truth?
Which part you felt the unfairness of VOA's article against Chinese culture?

Anyway, you should know the fact that mass media's truth; it has always bias. This is not a responsibility of mass media but the human beings because any article is published by them.

In Response

by: unoo from: ghana

September 14, 2012 3:50 AM

yeah i agree with u friend....i really feel disrespect when ever i read such news from the western medias, they are extremely bias. i now think too much of power portray evil and very soon people will refer its the evil empire....

In Response

by: Philip from: Mideast

September 14, 2012 3:32 AM

Great Lulei, I fully agree with all your views.

In Response

by: Anonymous

September 14, 2012 1:19 AM

I have to admit u are right.

In Response

by: Suechin from: China

September 13, 2012 10:51 PM

Cant agree it more.