China says tensions with Japan likely to hurt trade

BEIJING, Sept 13 (Reuters) - Tensions between China and Japan are likely to harm trade ties, Chinese Vice Minister of Commerce Jiang Zengwei said on Thursday after fresh territorial strains between Asia's two largest economies.

Beijing and Tokyo both claim islands in the East China Sea and tensions have flared since Tokyo announced it would purchase disputed islands from a private Japanese owner, an act that Beijing has called a violation of its sovereignty.

"With Japan's so-called purchase of the islands, it will be hard to avoid negative consequences for Sino-Japanese economic and trade ties," Jiang told a news briefing.

A Nissan Motor Co Ltd executive said last week the flare-up in tensions is affecting business with China. Jiang also warned there could be trade fallout.