China anti-Japan protest damage may be over $100m

Anti-Tokyo riots that shook Chinese cities in September could have cost Japanese firms more than $100 million over the last two months, according to new government estimates. The cost includes the vandalism of buildings and other physical damage, as well as the indirect effects such as reduced sales, the foreign ministry said in a report released this week. It does not include the effects of a consumer boycott on Japan-brand goods that has badly hit auto and electronics makers. "The total sum of damage now stands at between several billion yen and about 10 billion yen ($126 million)," a foreign ministry official said, adding it was still a rough estimate. Hearings have been held with dozens of companies to arrive at the amount, he said. The riots erupted after Tokyo nationalised three disputed islands in the East China Sea, which it controls under the name Senkakus, but which Beijing claims as the Diaoyus. Japanese nationals, businesses and diplomatic missions were targeted. Department store Heiwado suffered 1.8 billion yen of losses, and was forced to suspend operations for one-and-a-half months. The Aeon group incurred a loss of 700 million yen because of the destruction of a supermarket, the Asahi daily said. Earlier this month, Toyota said it expects to sell 200,000 fewer vehicles in China in the second half of its fiscal year and take a 30 billion yen hit to its bottom line because of tumbling demand from Chinese consumers. Honda cut its full-year sales forecast in China to 620,000 vehicles, from 750,000 units, while rival Nissan said it now expects to sell about 1.18 million vehicles in China, down from a previous target of 1.35 million units.