Appearances can be deceiving in Japan-China relations

While diplomatic tensions continue to fester in the wake of the Senkaku islands spat, most businesses in each country continue to cozy up to each other in the hope of making a buck or two.

So it came as something of a surprise that tony department store operator Isetan Mitsukoshi Holdings Ltd. said Wednesday it has suspended plans to open a second store in Tianjin city in China as negotiations with its Chinese joint venture partner unraveled. But in the end the delay has nothing to do with the lingering diplomatic row, according to the department store operator.

Instead, the company decided back in late August to stop talks with a potential local partner after the two sides were unable to agree on various details of the store plan, according to Miho Okada, spokeswoman for Isetan Mitsukoshi. Ms. Okada declined to specify details of the discussions, but since the boat collision that sparked the current diplomatic tit-for-tat took place on September 7, that would clearly place Isetan's decision on Tianjin well outside spat territory, albeit the company may wish it had made the decision public sooner.

Still, the roadblock has not derailed the company's plans to eventually open a second store in Tianjin, said Ms. Okada. With department stores sales across Japan as sluggish as the economy, Isetan Mitsukoshi announced the expansion strategy in February, saying it planned to open the store by spring 2011. And Ms. Okada said the company, which currently operates four department stores in China, including Shanghai and Chengdu, is currently in discussion with multiple prospective Chinese partners for the new Tianjin store.