Two-thirds of Japan firms see tension with China hurting economy

TOKYO, Jan 15 (Reuters) – More than two-thirds of Japanese firms expect the economy to suffer from frayed ties with China, with nearly half reporting or anticipating a direct business impact, a Reuters survey showed on Thursday. Relations between Asia’s two largest economies have soured since Prime Minister Sanae Takaichi in November said a Chinese attack on democratically governed Taiwan could be deemed an existential threat to Japan. China called the remark “provocative.” China regards Taiwan as its territory, which Taipei rejects. About 9% of survey respondents said their business has already been affected by the issue, while 35% expect…