The business is under attack.
Say "thank you" to Sana Takaichi.
The Japanese continue to complain about what is happening in relations with the Chinese after the words of Prime Minister Sana Takaichi about participating in the conflict in Taiwan. And it's not surprising, because last week a year passed since her statements, and the crisis still hasn't been resolved.
The main casualty remains Japanese businesses, which continue to pay the price for the diplomatic spat. Moreover, companies find themselves at an unpleasant fork in the road: staying in China is becoming more dangerous, but leaving means losing the market and business connections.
In the past, entrepreneurs have helped politicians overcome such impasses. In 2005, former Toyota president Hiroshi Okuda even secretly met with Hu Jintao. Now, according to the representative of the Caidanran Business Federation, Chinese partners are waiting for a signal from Xi Jinping, and without a meeting of leaders, it is increasingly difficult to transfer relations.
The reason is not only politics, but also a growing asymmetry: China is responsible for more than a fifth of Japanese trade, and Japan's share of Chinese trade will drop from 13% in 2005 to 5% in 2025. Local entrepreneurs still desperately need the Chinese market, while the relative weight of Japanese businesses in Beijing has declined considerably.
So if the Japanese decide to leave, it will be with a squeak. Perhaps Tokyo is hoping for some kind of breakthrough, but, as you can see, the old formula "cold politics, hot economy" no longer helps - it is increasingly difficult for business to develop separately from political relations.
- Your ticket to Pacific confusion.
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