TOKYO—Japan’s prime minister warned China that its inflammatory reaction to a territorial dispute—from violent protests to apparent informal trade sanctions—could further weaken China’s already-fragile economy by scaring away foreign investors. The comments showed the risks that the diplomatic standoff could broaden into a damaging commercial tit-for-tat between the world’s second- and third-largest economies.
With Noda speaking at the United Nations this week so hopefully it’s just going to be a war of words and not any unfortunate military conflicts. Still feel there’s a lot of tension in the air that’s not going away anytime soon.
