Several Japanese-owned factories and stores in China were closed today as anti-Japanese demonstrations raged in dozens of cities.
At stake are billions of dollars in investments and far more in sales and trade between Japan and China, the world's 3rd and 2nd largest economies.
The two are so closely entwined, though, that both would suffer from any long-term disruptions.
The Japanese government has urged Beijing to do more to protect Japanese businesses from trespassing, looting and other damage.
"Japanese companies play an important role in the Chinese economy and employment. We believe we should be calm and make rational judgments from a broad perspective," Chief Cabinet Secretary Osamu Fujimura said.
Some private and government-level meetings and events have been postponed or cancelled, he said.
Big name brands and retailers appeared to be suffering the brunt of the latest mass outburst of anti-Japanese sentiment, with companies in lower profile sectors less affected.
Many companies said they closed today as the 81st anniversary of a Japanese invasion brought a fresh wave of protests venting anger over the colonial past and a current dispute involving contested islands in the East China Sea.
In Shanghai, many of the Japanese-owned or oriented shops and restaurants in the western part of the city where the Japanese consulate is located had either closed or covered any Japan-brand signs.
Uniqlo, Asia's biggest clothing retailer, had closed some of its outlets but opened its huge flagship store on Shanghai's main Nanjing Road shopping street by the early afternoon. Amid calls for a boycott of Japanese products, the popular store was busy with shoppers.
Despite the territorial dispute, trade between the two countries has been thriving. Total trade rose 14% to $344.9 billion in 2011, setting a record, according to the Japan External Trade Organisation (JETRO).
Japan helps run China's high-speed train lines and aid from Tokyo helped build much of the country's modern infrastructure, including its Pudong international airport in Shanghai.
But many employees of Japanese retailers, automakers and other companies stayed at home today as thousands of anti-Japanese protesters marched in Beijing. The Japanese school in Beijing was closed yesterday, a Japanese public holiday, and today. Staff said they were uncertain what would happen tomorrow.
Many companies were wary of speaking in too much detail about the situation. Toyota would not reveal which or how many of its factories were closed, saying it was up to each affiliate or subsidiary to decide. Employee safety was the priority, it said in a company statement.
A Toyota dealership in Qingdao was burned and others had display models damaged, though there were no reports of injuries at the company's factories or dealerships.
Honda Motor said all five of its assembly plants in China were closed today and would remain closed tomorrow, mainly to adjust production due to the impact of the anti-Japanese backlash on sales. Honda dealerships also have been damaged in recent protests, the company said.
Kobe Steel shut four of its various steel, aluminum and construction machinery plants in China from yesterday or today, a company spokesman said. Sharp said its various factories are operating as usual, with no impact so far on their production. However, a spokesman said the company was taking precautions in having employees avoid unnecessary travel or excursions.
Kawasaki Heavy Industries, which has a big shipbuilding joint venture in the Yangtze River city of Nantong, near Shanghai, has likewise continued business as usual. Sony said it had suspended production at two factories out of the seven it operates in China, to protect its employees.
Although Chinese manufacturers are upgrading their technology and equipment as they close the gap with their global rivals, many rely heavily on advanced robotic machinery and other Japanese technology, as well as state-of-the-art materials and components.
Halts to production caused by the March 2011 earthquake and tsunami in northeastern Japan had an especially heavy impact on automakers. But the ripple effects of any major disruptions would be felt in many industries, from heavy manufacturing to clothing and cosmetics.
