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Page last updated at 08:08 GMT, Tuesday, 18 September 2012 09:08 UK

'China economy slowdown behind Japan dispute'

Protests in China have prompted many major Japanese companies to temporarily cease production there.

Canon, Nissan, Honda and Panasonic have closed facilities and told expatriate workers to stay indoors. The BBC's correspondent in Beijing has said there are thousands of demonstrators outside the Japanese Embassy.

Seijiro Takeshita from Mizuho - the second largest financial group in Japan - told the Today programme that both Japan and China stand to lose out from the bad blood.

He said: "The political situation between the two countries is very cold but the trade situation is very hot."

"It is certainly not giving a very good connotation on either party."

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