Japanese firms are concerned about Prime Minister Shinzo Abe's forceful diplomacy with China at a time when demand from the giant economy appears to be ebbing, a recent survey found.

More than half the executives in the Reuters Corporate Survey said demand from China is peaking or declining.

The survey found that a quarter are concerned about the impact of Abe's approach to foreign policy, which has inflamed tensions with China and South Korea. Forty-six percent said it has not affected them, and 29 percent said they were unsure.