110 Japanese firms went bankrupt in 2006, leaving debts amounting to JPY71.84 billion (US$0.64 billion), according to a report by Tokyo Shoko Research. This number was an increase from 101 firms the previous year, and was a result of the companies' challenges in doing business in China, or the so-called "China risk", a combination of increasing production costs and heightened political tensions, said the South China Morning Post, citing the report.