In Shanghai, China, Japanese retailer Muji has been fined 200,000 yuan for using packaging which lists Taiwan as a country.
This is the second time that Muji has been hit by this issue from China this year. It can be recalled that foreign companies like Marriott International Inc and Delta Air Lines have apologized for similar issue.
"Muji, which is owned by Ryohin Keikaku Co, imported 119 clothes hangers from Japan last year in packaging that marked Taiwan as the "country of origin","the Shanghai Administration for Industry and Commerce said in a statement.
Muji's packaging is said to have violated Chinese advertising law that warns against hurting China's interest and dignity.
"The party did not properly fulfil their inspection obligations which lead to the above-mentioned goods to enter the market to be sold," the regulator said, adding that Muji changed the packaging and made corrections immediately.
Muji's company from Tokyo confirmed the fine and also said that they will make efforts to comply with China's regulation.
China has been strictly monitoring firms describing territories such as Hong Kong, Taiwan and Macau as 'countries'.
China's most sensitive territorial issue is about Taiwan. The country considers the self-ruled island as a "wayward province." Both Macau and Hong Kong are part of China but run autonomously.
