Half of Japanese companies have seen their profits hurt by the U.S.-China trade war. But few firms are planning to shift operations or supply chains out of China as yet, a Reuters poll found on Thursday.

The Reuters Corporate Survey highlights the worsening collateral damage to global trade, beyond the immediate China-U.S. relationship.

The trade war between the world's two biggest economies and a related global slowdown are hurting output and exports in Japan. Manufacturers' confidence hit a six-and-half year low in September, according to the Reuters Tankan poll.

The survey showed 45 percent of Japanese firms have had their profits affected to some extent by the U.S.-China tariffs, while 6 percent have been greatly affected. Some 42 percent of firms said they have hardly been hit, and 7 percent saw no impact at all.

The latest survey, conducted August 29-September 9 for Reuters by Nikkei Research, canvassed 504 big and midsize companies, of which 250 responded on condition of anonymity.

Half of Japanese companies have no plan to move out of China

Despite the damage so far, just 11 percent of Japanese firms said they are considering moving their business bases or supply chains out of China. About half said they had no specific plans to move out of China.

Asian countries outside China were by far the most popular destination for companies relocating, followed by those bringing operations home to Japan, with North America and Europe lagging behind as destinations, the survey showed.

Corporate managers hope U.S.-China confrontation to be resolved quickly

Corporate managers fretted about ripple effects ranging from exports and investment to supply chains and broader economic growth.

"I'm concerned that (the trade war) could trigger a global depression," wrote a manager at an electric-machinery maker, responding to questions in the survey.

A retailer also cited fears of a recession, which the manager said could hurt sales to Chinese tourists – a strong source of growth for Japan's longest postwar expansion – and badly affect the establishment of new businesses in China.

"I strongly hope that the U.S.-China confrontation is resolved quickly as it is a destabilizing factor for global economy and weighing on business sentiment," wrote a manager at a machinery maker.

On September 1, a fresh wave of tariffs were imposed on a portion of 300 billion U.S. dollars' worth of Chinese goods to the U.S., while China's first batch of retaliatory tariffs of either 10 or 5 percent on 75 billion U.S. dollars of U.S. goods also went into effect. 

On September 12, the U.S. decided to postpone an additional five percent tariffs on 250 billion U.S. dollars' worth of Chinese imports from October 1 to 15, a goodwill gesture welcomed by China.

(With input from Reuters)