Tokyo: Japanese tourism and retail stocks fell sharply after China warned its citizens not to travel to Japan, deepening a diplomatic row triggered by comments from Prime Minister Sanae Takaichi about a possible Japanese response to a conflict over Taiwan.
Takaichi, known for her conservative views, told parliament earlier this month that a Chinese attack on Taiwan could create a situation threatening Japan’s survival, suggesting that Japan’s self-defence forces might have to act.
Her remarks sparked a strong backlash in Beijing, which urged its citizens to avoid travelling to Japan and warned students to reconsider studying there. China also sent a coastguard vessel near the disputed Senkaku Islands over the weekend.
In an effort to calm tensions, Masaaki Kanai, head of the foreign ministry’s Asia and Oceania bureau, is expected to meet his Chinese counterpart Liu Jinsong in Beijing on Tuesday. Japanese officials say Kanai will clarify that Takaichi’s comments do not represent a change in Japan’s security policy and will call on China to avoid actions that could further harm relations.
The diplomatic dispute has already hit Japanese markets. Shares in Shiseido dropped 9 percent in Monday morning trading, Takashimaya fell more than 5 percent, and Fast Retailing, the owner of Uniqlo, lost over 4 percent. China is Japan’s biggest source of tourists, and Chinese visitors are known for spending heavily on cosmetics, clothing, and electronics.
Chinese authorities also postponed the release of two Japanese animated films, with state media suggesting the delays were part of Beijing’s response. Takaichi’s comments came despite Japan’s long-standing position on Taiwan. Under its pacifist rules, Japan can use military force only in limited situations, including when the country faces an existential threat.
The government has since reiterated that its stance on Taiwan remains unchanged and that it understands China’s position under the 1972 joint communique that normalised bilateral ties.
Takaichi, who became prime minister last month, has been a strong critic of China’s growing military activity in the region. Her remarks have now prompted one of the sharpest drops in Japan-China relations in recent years, leaving businesses and diplomats scrambling to contain the fallout.
