The latest record showed that Japan has pulled out its investments in China following an ongoing disagreement on territorial boundaries. This was according to a report from ChinaTopix adding that China is the biggest trading partner of Japan.

According to the Japan External Trade Organization (JETRO) recorded that the investment of the country this year in South East Asia were triple apart from its investments in China.

Last year, Japanese firms have funded companies in Thailand, Singapore, Indonesia, Vietnam, Philippines and Malaysia valued USD22.8 billion. Meanwhile, Japan made investments in China last year valued USD8.7 billion, lower compared to its other investments in South East Asian countries.

On the other hand, foreign investments in China have plunged by 18 percent in 2013 while investments to SE Asia countries by Japan have been doubled, reported ChinaTopix.

JETRO’s chairman Hiroyuki Ishige said that the political scene and economic condition in China were viewed to have "a considerable amount of risk."