Published on September 2, 2019.
Based on an essay by Hasegawa Yukihiro published in the monthly magazine Hanada, this chapter discusses the Japanese media’s misplaced focus in reporting the U.S.–China confrontation merely as an economic issue, the essence of the Chinese Communist Party system, and the danger of pressure from public security authorities and honey traps faced by Japanese companies attempting to withdraw from China.
It warns of the “unofficial risks” that companies operating in China must confront.

Published on September 2, 2019.
“Do you think you can withdraw?
We know everything you Japanese are doing in this country,” they say.
Many Japanese have, in effect, fallen into honey traps.
The following is from an essay by Hasegawa Yukihiro, titled “The Hong Kong Demonstrations and Trump’s Intentions,” published in this month’s issue of the monthly magazine Hanada.
The preface is omitted.
The Japanese Media’s Misplaced Focus.
As the exchange between the United States and China grows more intense, what should Japan do?
What I want to point out is the misplaced focus of the media, which I touched upon a little earlier.
Many Japanese media outlets continue to report the U.S.–China confrontation as a matter of “money and economics.”
For example, regarding the designation of China as a currency manipulator, the Asahi Shimbun reported under the headline “U.S. and China Clash Also Over Currency” that “the U.S.–China confrontation is taking on the appearance of a currency depreciation race… and uncertainty over the economic outlook has increased” (front page, August 7).
The Yomiuri Shimbun also wrote in its analysis, “U.S.–China Friction Spreads to Foreign Exchange,” that it is “violently shaking the world economy” (same day, page 3).
As facts, these are not wrong.
However, if one asks whether they report the essence of the matter, one cannot say that they do.
Even if Mr. Trump himself keeps the U.S.–China confrontation within the realm of economic issues, as I have repeatedly pointed out in this series, the administration as a whole, including other senior officials and the Department of Defense, regards China’s dictatorial and repressive system as the problem.
China not only suppresses human rights, but also does not hide its territorial and maritime ambitions toward the South China Sea and the Senkaku Islands.
At the center of this is the Chinese Communist Party.
If one speaks only of the adverse effects on the world economy while leaving out that structure, one will only misread the overall situation.
The Japanese media are solely worried about the adverse effects on the Japanese economy.
This is reflected in articles such as the Asahi’s “Trade and Finance: Blow to Japan as Well” (same day, page 3) and the Yomiuri’s “Shadow Also Over Japanese Companies” (same day).
The media also bear great responsibility for Japan’s “peace stupor” and “money-making supremacy.”
What will the Shinzo Abe administration do?
Regarding China, Japan is being pulled apart between “the economy” and “security.”
Private companies want to build win-win relationships through trade and investment with China.
However, as the Japanese state, Japan cannot let its guard down toward China on security issues.
Even now, Chinese official vessels continue to swarm around the Senkaku Islands.
Potentially, it is a threat.
The Abe administration is facing the contradictory tasks of “keeping step with the United States, which is fighting China on security, while seeking economic fruits.”
However, at this point, circumstances seem to be changing somewhat.
An increasing number of companies are considering withdrawal from or relocation of their China businesses.
That is because, in addition to the rising wages of Chinese employees, the environment surrounding business has become even more uncertain.
For example, the president of one company told me, “As soon as we began considering withdrawal, the public security authorities came and threatened us.”
“Do you think you can withdraw?
We know everything you Japanese are doing in this country,” they say.
Many Japanese have, in effect, fallen into honey traps.
The more tense U.S.–China relations become, the more important relations with Japan become for China.
Precisely for that reason, in order not to let Japanese companies that once came to China leave, China is setting various traps.
In the past, politicians and bureaucrats were targeted, but now people connected with Japanese companies have become the main targets.
Companies that have entered China, and companies that are now considering entering or expanding their business there, should pay attention to the invisible “unofficial risks.”
Considering the overall situation and risks surrounding China, I cannot imagine the option of expanding China business from now on, but…