It’s time for clear heads to stop to stupidity in the dispute between China and Japan over 6 tiny islands.

The Chinese Ministry of Commerce’s Shen says trade will be affected by the disputed islands. He added the caveat that Japan bears “complete responsibility” to avoid the guillotine.

Even more troubling were comments about soft imports, which he said were caused by a domestic slowdown (not soft international demand). He added that external demand will be weaker in the coming months than Jan-Aug.

Earlier, AEP at The Telegraph outlined the worse-case scenario of the Japan-China dispute. (thanks to Denis for the link)