China’s Ministry of Commerce spokesman has said in a news conference that Japan’s unlawful "purchase" of China’s Diaoyu Islands is damaging the development of economic and trade relations between the two countries. He called for Japan’s concrete actions to improve relations.

Shen Danyang, Spokesman of Ministry of Commerce, said, "If Japan really wants China-Japan economic and trade ties to develop healthily, it should step back from the brink and correct its mistakes, and take concrete action to build a healthy environment and atmosphere for bilateral trade."

A report by J.P. Morgan last week projected Japanese auto exports to China will crash 70 percent during the October-December period. And the aftermath of Japan’s actions will cause the world’s third biggest economy to shrink 0.8 percent in the fourth quarter. The report also said the number of Chinese tourists would decline by 70 percent, as more than a hundred thousand Chinese cancelled Japan trips.

China ranks as Japan’s largest trading partner, while Japan is China’s fourth largest. Trade between the two countries accounts for about 20 percent of Japan’s total foreign trade.

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