Politics Bleeds Into Economics in East Asian Disputes

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In East Asia, warning signs are emerging that countries facing strained ties over continual territorial disputes are finding it increasingly difficult to isolate their economic decisions from their political disagreements. Earlier this week, the New York Times reported that China cancelled scheduled trips by its finance minister and central bank chief to the annual International Monetary Fund and World Bank meetings in Tokyo, Japan. The article called this the latest example of how the “highly volatile territorial dispute” between China and Japan is beginning to damage the “huge economic relationship” between the second and third largest economies in the world. […]

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