Anti-Japanese protests hurting businesses

Escalating anti-Japanese protests in China are hurting Japanese-related companies, forcing them to either shut down operations or suspend production on the mainland in order to protect their employees and property.

The protest that swept more than 50 mainland cities descended into violence over the weekend, dealing a blow to all kinds of Japanese-related businesses, ranging from department stores, carmakers, fashion retailers, to restaurants and electric appliance makers.

Market observers said the businesses may return to normal after the tension between the two countries eased, but in the long term the Chinese government may consider a strategy adjustment to curb the expansion of Japanese enterprises across the country.

Japan last week said it would buy islands claimed by both countries, sparking Chinese protests that called for boycotts of Japanese goods.

In a big shopping centre in the east of Beijing yesterday, two big Japanese fashion and lifestyle brands Uniqlo and Muji had both shut their doors yesterday. And the three Japanese-style shops across the street were also shut down, using black cloth to hide their signboards that featured Japanese names.

"They will remain closed at least till Tuesday, the memorial date of the September 18th incident," said a property manager at the shopping centre referring to the date Japanese troops invaded northeast China in 1931.