China Issues Travel Warning to Japan Amid Diplomatic Row, Impacting Japanese Markets
China has issued a warning to its citizens advising against travel to Japan, leading to sharp declines in Japanese tourism and retail shares. Morning trades saw Shiseido shares drop by 9%, Takashimaya by over 5%, and Fast Retailing by more than 4%.
The dispute originates from Japanese Prime Minister Sanae Takaichi's statements indicating that Japan might militarily intervene if China invades Taiwan, which she described as a survival-threatening scenario for Japan. In response, Beijing summoned Japanese ambassadors and called for a boycott of Japanese products by Chinese citizens. Additionally, the Chinese coast guard conducted a rights enforcement patrol near the contested Senkaku/Diaoyu islands.
To ease tensions, Japan’s Masaaki Kanai is scheduled to meet with Chinese counterpart Liu Jinsong in Beijing. The meeting aims to reassure China that Takaichi's remarks do not represent a change in Japan's security policy and to urge China to avoid actions that could damage bilateral relations.
Taiwan, claimed by China and situated about 100 km from Japan's nearest island, remains central to the dispute. Japan maintains its position on Taiwan is unchanged and acknowledges the historical ties established via the 1972 joint communique.
Both China and Japan remain major trading partners, and this diplomatic row adds to broader regional tensions, complicating their already complex bilateral relationship.
