As China and Japan are disputing island territories, the head of China's central bank will be a no-show at this week's meeting of the International Monetary Fund in Japan.
As China and Japan are disputing island territories, the head of China's central bank will be a no-show at this week's meeting of the International Monetary Fund in Japan. - 
Listen To The Story
Marketplace

This morning global markets are digesting the fact that the head of China's central bank will be a no-show at this week's meeting of the International Monetary Fund. The problem seems to be that that meeting is in Japan -- and China and Japan right now are facing off over disputed island territories.  

With the world's financial and economic leaders all converging in Japan, the meeting holds great importance for the country. The absence of two of the senior most Chinese finance officials "is certainly a slap in Japan's face," says Eswar Prasad, an economist Cornell and former head of the China division at the IMF.

Aside from the symbolic signficance, China's no-show may disrupt the meeting's proceedings and coordination efforts. Prasad says, "When you have the second largest economy in the world, and the economy that is making the biggest addition to global growth not at the table, it is certainly going to make a difference" as the world ecnomic situtation is in a very delicate state.

“I think the best compliment I can give is not to say how much your programs have taught me (a ton), but how much Marketplace has motivated me to go out and teach myself.” – Michael in Arlington, VA

As a nonprofit news organization, what matters to us is the same thing that matters to you: being a source for trustworthy, independent news that makes people smarter about business and the economy. So if Marketplace has helped you understand the economy better, make more informed financial decisions or just encouraged you to think differently, we’re asking you to give a little something back.

Become a Marketplace Investor today – in whatever amount is right for you – and keep public service journalism strong. We’re grateful for your support.

Follow Jeff Horwich at @jeffhorwich