Japan’s Auto Exports to China Plummet

Shipments of vehicles from Japan to China plunged 45% year over year in September amid a territorial dispute between the two countries, according to Japan's Finance Ministry. Exports of engines and auto parts dropped 49% and 18%, respectively.

Japan's overall exports to China last month fell 14% from September 2011 to 954 billion yen ($12 billion). Economists attribute the slump to China's cooling economic growth and the feud about control of a small island chain in the East China Sea.

Autos have become one of the most visible symbols of Japan to Chinese protesters. Some consumers shun Japanese cars because of nationalist sentiment. Others fear driving one could make them a target of angry demonstrators.

China wasn't the only bad news for Japan's exporters. The county's shipments of all goods to the European Union tumbled 21% last month. Growth in exports to the U.S. slowed to 1%.

Reuters poll of Japanese manufacturers showed a sharp drop in optimism, with many companies citing anti-Japan attitudes in China. The news service's Tankan index of manufacturer sentiment fell 12 points to -17, the biggest one-month decline since the aftermath of the country's earthquake and tsunami in March 2011.