Japan's September exports to China fall 14pc after 9.9pc August drop

JAPAN's Finance Ministry has revealed that Japanese exports to China fell 14 per cent year on year in September amid the ongoing dispute over the control of small islands in the East China Sea, the Wall Street Journal reported.

"If this problem continues into early next year ... an economic recession would be unavoidable in Japan," said Ryutaro Kono, chief economist at BNP Paribas.

The decrease was faster than in August when exports fell 9.9 per cent year on year, the largest decline since January, the figures show.

Major Japanese brands suffered most from the spread of anti-Japanese sentiment in China. Car exports were the worst hit, decreasing 44.5 per cent year on year, while Japanese cosmetics manufacturer Shiseido suspended operations at several hundred outlets. Exports of general machinery fell 29.1 per cent.