Influence Of Sino-Japan Political Conflict On The Sales Of Janpanese Brand

The influence of politics on economy has always been attracting attention from foreign scholars.The conflicts triggered by religion,territory and history influence economic contact between two countries,including trade and sales,etc.As the world second and third largest economic entities in contemporary society,Sino-Japan bilateral political relationship not only generates significant impact on Japanese and Chinese economy,but also influences the development prospect of entire East Asia and even the world.in recent years,due to various historical reasons,Japan and China are in controversy about the ownership of Diaoyu Island,which even caused the event that Japan purchased the Island in 2012 and deteriorated Sino-Japan relationship;thus,Sino-Japan political relationship reached to the lowest point since establishing diplomatic relations.Studies have shown that political conflicts influence economic behavior.This paper focuses on the Chinese boycott of Japanese product triggered by the conflict about Diaoyu islands in September of 2012.With this event,we use the monthly sales of cars from 2009 to 2014 to identify the impact of political conflict and estimate its scale.The result remained stable after the robustness tests based on policy time,enterprise factor and regional factor.The analysis shows that the boycott effect lasts for about 6 months and we see a most significant effect in the first 3 months,during which there is 1751 to 2911’s drops in sales of Japan-brand cars averagely.Furthermore,in the 6 months’ effect,Nissan-brand cars suffer most in the boycott,for there is 1487 more sales’ drop than other Japan-brand cars.The analysis shows that it exist a medium-short term boycott effect,showing that there is a strong wait-and-see effect.The following suggestions are proposed according to above research results: Chinese people shall express patriotic enthusiasm reasonably rather then blindly follow others to join in boycott activities;China and Japan shall reinforce mutual trust to accelerate normal Sino-Japan relationship;domestic enterprises shall size the historical opportunity,and Japanese as well as Sino-Japan joint venture shall adjust strategy.