Japanese companies are concerned about Prime Minister Shinzo Abe’s forceful diplomacy with neighbors like China, at a time when demand from Asia’s giant appears to be ebbing, a Reuters survey showed.
More than half the executives in the Reuters Corporate Survey said demand from China is peaking or declining.
The survey showed a quarter are concerned about the impact of Abe’s approach to foreign policy, which has inflamed tensions with China and South Korea. Forty-six percent said it has not affected them, and 29 percent said they were unsure.
Japan’s ties with China and Korea have worsened over bilateral territorial disputes and a feeling in Seoul and Beijing that Tokyo has not atoned for its wartime aggression, especially with Abe’s December visit to the Yasukuni shrine, which Japan’s neighbors consider a symbol of its wartime and colonial brutality.
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