(Beijing) – Since the start of the Diaoyu Islands dispute between China and Japan in September, Japanese firms operating in China are facing increasing negative sentiment, an economic slowdown, rising labor costs and frequent strikes. A number of Japanese firms have started to think about a withdrawing from the country.

"Japanese companies should learn how to leave China as soon as they enter the country," said Akihiro Maekawa, managing director of CAST Consulting, a Japanese firm that mainly provides services to Japanese companies in China. "They should now review corporate charters just in case."