Beijing has voiced a willingness to maintain relatively amicable ties with Tokyo, at a time when its relationship with Washington has grown increasingly acrimonious.
Large-scale sales of U.S. dollar-denominated assets would also trigger depreciation of the dollar against the yen, hitting Japanese exports.
Detention of popular protest leader throws rights issues into the spotlight, threatening to further exacerbate tensions between Beijing and Tokyo.
Retail sales of consumer goods plunged 11.4 percent, and the total value of imports dropped 3.3 percent in the first half of this year.
Tokyo, wary of repercussions from Beijing, finds itself in a dilemma as it faces calls from Washington and others to help safeguard rights of the city's residents.
At least 20 percent of Japanese people who were working in the Chinese capital have yet to come back, a survey conducted in late March showed.
Beijing has been making friendly overtures toward Tokyo, with an eye on economic revival after the pandemic passes, diplomatic sources have said.
Tokyo is likely to place a top priority on shoring up the nation's virus-hit economy for an extended period, making it tough to promote free trade agreements.
Many smaller companies in the tourism, retail and other services sectors have encountered bankruptcy risks as the epidemic disrupts supply chains.
Coming as the new coronavirus strain holds the world's attention, North Korea's first projectile firing this year could be seen to underscore its intention to draw the focus of the United States onto Pyongyang's nuclear and missile programs. At a key ruling party meeting in ...