Colin Donald: Time to put genie back in the bottle

From Scotsman.com:

Waves of anti-Japanese protests sweeping China for the past three weeks have threatened bilateral economic ties between East Asia’s biggest economies. Fears are growing that an obscure dispute over the approval of eight revisionist Japanese history textbooks could disrupt booming trade and investment flows, and shatter a key pillar of global growth.

Although it sprang back yesterday, the weekend of protests across China led to the Nikkei index’s broadest decline since September 12, 2001, wiping $115 billion (¬£60bn) off the value of stocks included in the Topix, a shock echoed in bourses around the world.

Linda Yueh, an expert on the Chinese economy at the London School of Economics, is optimistic that the power trade and investment will override political tension, but admits that relations are entering uncharted territory;

“There is potential for serious economic consequences, particu

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