Losses of Japanese firms in Chinese riots may top $100m

7 years ago by in China, Featured, Japan

Japanese firms may have lost up to $100 million after the riots that took place in China, according to fresh estimations by Japan’s government.

The losses include vandalism of buildings and other physical assets, as well as the economical effect of reduced sales.

The amount does not however include the effect of the Chinese boycott of various Japan-made products, a factor that affected significantly car and electronics makers.

The riots began after Tokyo announced it has nationalized three of the disputed islands in the East China Sea known as Senkaku in Japanese and Diaoyu in Chinese.

“The total sum of damage now stands at between several billion yen and about 10 billion yen ($126 million),” a foreign ministry official said.

The amount is a rough estimate and was calculated after dozens of hearings of affected companies.

Among those who suffered most, department store Heiwado lost Y1.8 billion and suspended operations for about 45 days, while the Aeon group lost Y700 million after the destruction of a supermarket.