Relations between Tokyo and Beijing have plummeted over Japanese leader’s recent remarks on Taiwan.
Published On 17 Nov 2025
Japanese shares linked to the tourism industry have nosedived following China’s warning to its citizens against travelling to Japan.
Relations between Tokyo and Beijing have plummeted since Japanese Prime Minister Sanae Takaichi suggested earlier this month that Japan’s military could intervene to stop China from taking control of Taiwan.
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In a sharp escalation of the dispute on Friday, China’s Ministry of Foreign Affairs advised citizens to avoid travel to the East Asian country, claiming that Takaichi’s comments had increased risks to their “personal safety and lives”.
The issue continued to reverberate as Japan’s stock market reopened on Monday after the weekend break, with shares of airlines and retail outlets taking sharp falls.
Department store group Isetan Mitsukoshi fell more than 11 percent in afternoon trading, while its rival Takashimaya tumbled about 5 percent.
Japan Airlines fell about 4 percent, while Uniqlo owner Fast Retailing dipped about 5 percent. Cosmetics company Shiseido plunged about 9.5 percent.
China is Japan’s biggest source of foreign tourists, accounting for almost one-quarter of the 31.65 million arrivals in the first nine months of this year, according to the Japan National Tourism Organization.
Ryota Abe, an economist at Sumitomo Mitsui Banking Corporation, said Japan’s gross domestic product (GDP) could shrink by about 0.5 percent in the event of a total collapse in Chinese arrivals and by about 0.1-0.2 percent if arrivals decreased by about one-third.
“Even if the number of visitors decreases 30 percent because of the heightened tensions, the negative impact will be around 0.1-0.2 percent,” Abe told Al Jazeera.
Japan’s economy shrank by 0.4 percent in the three months to September, official data released on Monday showed, the first contraction in six quarters.
Japan’s Chief Cabinet Secretary Yoshihide Suga told a regular news briefing on Monday that Beijing’s travel warning was inconsistent with mutually beneficial ties and that Tokyo had requested “appropriate steps” from the Chinese side.
Japan’s top official for Asia Pacific affairs, Masaaki Kanai, departed for China on Monday for talks aimed at lowering tensions between the sides, Japanese media reported.
Masaaki Kanai will meet his Chinese counterpart, Liu Jinsong, in Beijing, where he is expected to clarify that Tokyo has made no change to its security policy despite Takaichi’s comments on Taiwan, the reports said.
Japan has long viewed China’s threats to take control of Taiwan with concern due to the self-ruled island’s close proximity to Japanese territory and its location in waters that carry large volumes of trade.
China considers Taiwan part of its territory and has pledged to “reunify” the island with the Chinese mainland, by force if necessary.
Taiwan is not officially recognised by most countries but has many characteristics of a de facto independent state, including its own military and passport, and a democratically elected president and legislature.
