Chinese protests and uprising against anything “Japanese” has caused a few Japanese businesses to shut down their operations the last couple of days.  Major brands like Panasonic and Toyota have experienced complications due to protests as well as attacks on their factories.

Chinese protests and uprising against anything “Japanese” has caused a few Japanese businesses to shut down their operations the last couple of days.  Major brands like Panasonic and Toyota have experienced complications due to protests as well as attacks on their factories.

Japan and China are two major economies in the Asian region, so it goes without saying that they are each other’s benefactor in more ways than one.  Japanese investors have long relied on China as a source for cheap manufacturing labor, but due to the recent anti-Japan protest, many Japanese investors may have to revise their strategies in China.

The anti-Japan protest arose because of various conflicts between the Chinese and Japanese.  One of the main causes, however, is perhaps the dispute over ownership of several islands in the East China Sea.  China, Japan, as well as Taiwan have all stressed that they are the proper authorities over the islands.

The islands, although scarcely inhabited or no inhabitants at all, are rich in resources, which is possibly the main reason why Japan and China are vehemently defending their sovereignty. 

Soon after Japan made an announcement that it had agreed to purchase the islands, protestors took to the streets with anti-Japanese themed banners.  Japanese flags were burned and defiled, Japanese products were smashed, and ultimately the Japanese factories also became a target.

Analysts fear that the insurgence may have long-lasting effects on not only the Japanese businesses, but also the growing Chinese economy. 

Panasonic has announced that it will halt businesses in their factories until September 18.  However, it is unlikely that anti-Japanese sentiments will wane in such a sort amount of time. 

An analyst told the BBC that, in light of the rising tension in China, Japanese investors may have to look for business opportunities elsewhere.  Countries such as Thailand are currently more welcoming of Japanese investments, and so growing Japanese businesses may decide shift their manufacturing processes there.