Rising tensions between Tokyo and Beijing over Taiwan have led to a sharp fall in Japanese tourism and retail stocks. This followed a Chinese government advisory warning its citizens against travelling to Japan, citing safety concerns amid the ongoing dispute.
Japan’s Prime Minister, Sanae Takaichi, who has criticised China’s military actions in the region, suggested earlier this month that Japan could take military measures if China attacked Taiwan. This heightened uncertainty spooked investors, causing shares in Shiseido to drop nearly 10%, while Takashimaya and Fast Retailing, owner of Uniqlo, fell more than 5%.
China has long been a major source of tourists to Japan, but the crisis has also affected education and travel ties. The Chinese Education Ministry urged students already in Japan to stay vigilant due to safety risks, as crimes targeting Chinese nationals reportedly increased.
More than 100,000 Chinese students studied in Japan last year according to official figures. Chinese airlines have also offered refunds for flights to Japan, signalling disruptions in travel.
Takaichi stated in parliament: “If there are battleships and the use of force, no matter how you think about it, it could constitute a survival-threatening situation.” Under Japan’s 2015 security law, such a situation allows the Self-Defence Forces to respond if an armed attack threatens Japan’s survival.
Taiwan, located about 100 kilometres from Japan’s closest island, is deemed by Beijing as a breakaway province to be reunified with China. While many Taiwanese identify as a separate nation, most prefer to maintain the current status quo without declaring independence or unification.