China Issues Travel Warning to Japan Amid Diplomatic Row Over Taiwan, Impacting Tourism and Retail Shares
On 17 November 2025, China issued a travel warning advising its citizens not to visit Japan following a diplomatic dispute triggered by comments from Japanese Prime Minister Sanae Takaichi regarding Taiwan. Takaichi suggested that Japan's self-defence forces could intervene if China invades Taiwan, prompting Beijing to call for a boycott of Japanese tourism and to deploy Chinese coast guard patrols around the disputed Senkaku/Diaoyu islands.
The tensions caused a sharp drop in Japanese tourism and retail shares during morning trading, with Shiseido falling about 9%, Takashimaya down more than 5%, and Fast Retailing dropping over 4%. China represents Japan's largest source of tourists, who are known for significant spending on cosmetics, clothing, and consumer electronics.
In response to the escalating situation, Japan's Foreign Ministry official Masaaki Kanai planned to meet Chinese counterpart Liu Jinsong in Beijing to reassure China that Takaichi's remarks do not indicate a change in Japan's security policy and to urge China to refrain from actions that could further harm bilateral ties.
The diplomatic row follows longstanding tensions over Taiwan, which the 1972 Japan-China joint communique affirms Japan fully understands and respects as an inalienable part of the People's Republic of China. Takaichi is known for hawkish, pro-Abe stances, including having met Chinese President Xi Jinping at an APEC summit, visiting Taiwan, and being described by Taiwan's presidency as a staunch friend.
Last week, both countries summoned each other's ambassadors amid the dispute, while the Chinese coast guard conducted patrols through the contested Senkaku/Diaoyu waters, escalating the confrontation further.
