Taiwan will profit and lose from Beijing sanctions against Japan
Editorial 2012-09-20 16:49
An anti-Japanese protest in Hangzhou, Sept. 16. (Photo/CNS)
China is expected to launch economic sanctions against Japan over the latter's purchase of parts of a contested island group in the East China Sea last week. The move by the Japanese government triggered a series of anti-Japanese protests across many Chinese cities over the weekend which have continued into this week.
Beijing has taken several measures to counter Japan's decision to nationalize three of the Diaoyutai islands, as they are known in Taiwan, which also claims them. They are called the Diaoyu in China and the Senkaku in Japan, which controls them.
Senior Chinese leaders including President Hu Jintao and Premier Wen Jiabao have strongly protested Japan's actions, with Hu telling Asia-Pacific leaders at the APEC summit meeting in Russia before Japan's government signed the deal to buy the islands from their private owner on Sept. 11 that nationalizing the islands would be illegal.
China's foreign ministry responded to the purchase by making a historical case supporting the country's claim to the islands, saying that the claim dates back to the 15th century. On Sept. 10 it also announced a territorial baseline for the islands, defining the exact geographic extent of its claimed territory, in an unsuccessful bid to prevent the move from going ahead.
Since the deal was signed, Beijing has not only sent marine surveillance ships to the waters near the islands but also summoned the Japanese ambassador to China to protest Tokyo's decision.
An aggressive media campaign was also launched through the country's state-run media, with the CCP mouthpiece People's Daily and local official news outlets running headline stories about the islands on a daily basis, further fueling anti-Japanese sentiment among the public.
In the next round of countermeasures against Japan, Beijing is expected to form concrete plans to impose economic sanctions on its neighbor. Yet even before such measures are unveiled, there have already been confrontations on the economic front driven by public anger.
Travel operators in several Chinese provinces canceled trips to Japan scheduled for China's national day holidays at the start of October, while the Chinese public is voluntarily boycotting Japanese cars, cosmetics and foods.
People's Daily published an article on Monday which said China would take every step to defend its territorial sovereignty in the face of Japan's 'theft' of the disputed islands. Commenting on the timing of proposed sanctions against Japan, People's Daily said such steps would be in line with international laws and would be justified.
Economic sanctions, as opposed to diplomatic and military measures, will prove more effective given the fact that Japanese businesses have long established themselves in Beijing, Shanghai, Guangzhou, Chongqing and other major Chinese cities.
Two years ago, China imposed sanctions against Japan over the islands, announcing a two-month ban on exports of rare earth to Japan, which pushed up raw material costs for the Japanese electronics industry and reduced orders.
The latest economic sanctions could prove more damaging, with China likely to target Japanese sectors including manufacturing, financial services and certain exporters to China, which are likely to be hit the hardest.
Taiwan may benefit from the sanctions as they may force Japanese manufacturers to export their goods through Taiwan or put Taiwanese manufacturers in a better position to compete with their Japanese rivals.
However, Taiwan will have to brace itself for the impact of Chinese sanctions against Japan, since its own economy relies heavily on Japan.
We have to take a clear stance on this issue, without compromising our interests.
