JAPAN: The outcome of the looming battle...

JAPAN: The outcome of the looming battle in the U.S. Congress over extension of China’s most-favored-nation trading status could affect other nations, such as Japan. China is Japan’s sixth-largest trading partner, and Japanese business executives said that if China loses its special trade privileges with the United States, recent improvements in trade between Japan and China could be reversed. The loss of most-favored-nation status could be a blow to progressives in the Chinese government, a setback that would give already skittish Japanese investors pause. Japanese business leaders also said that any decision to change U.S. trade terms with China could damage Beijing’s ability to raise the hard currency it needs to buy Japanese goods.