The Chinese government may withdraw investments in Japan as a way to retaliate against the United States and Japan for opposing China’s newly established air defense identification zone. A shareholder listed as SSBT OD05 Omnibus China Treaty 808150, which is widely considered a Chinese sovereign fund, has reduced its Japanese investment by 600 billion yen (US$5.8 billion) between March and September this year, according to our Chinese-language sister paper Want Daily and the Tokyo-based Sankei Shimbun.
The sovereign wealth fund had invested around 4.24 trillion yen (US$41.3 billion) in 174 Japanese businesses as of March this year but the figure had dropped by 607.4 billion yen (US$5.9 billion) as of the end of September. It was the ninth largest shareholder of the Toyota Motor Corporation with a 300.1-billion-yen investment in March but by September, it was no longer one of the Japanese carmaker’s ten major shareholders, said Japan’s Chibagin Securities.
Rumors of China using its growing economic strength to retaliate against Japan have reemerged after China set up the ADIZ in the East China Sea out of the blue on Nov. 23 this year, heightening tension between the two countries.
Full article: Chinese fund sells off Japanese investments in retaliation (Want China Times)