Relations between Japan and China have plummeted over recent comments by the Japanese leader regarding Taiwan.
Published November 17, 2025
Japanese stocks related to the tourism industry plunged after China warned its citizens against traveling to Japan.
Relations between Japan and China have plummeted since Japanese Prime Minister Sanae Takaichi suggested earlier this month that the Japanese military might intervene to prevent China from taking control of Taiwan.
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On Friday, China’s Foreign Ministry advised its citizens to avoid traveling to the East Asian country, saying Gaoichi’s comments had increased risks to “personal safety and life” as the conflict rapidly escalated.
The issue continued to resonate after Japan’s stock market reopened on Monday after a weekend break, with airline and retail stock prices plummeting.
Department store group Isetan Mitsukoshi fell more than 11% in afternoon trading, while rival Takashimaya fell about 5%.
Japan Airlines fell about 4%, and Uniqlo owner Fast Retailing fell about 5%. Cosmetics company Shiseido plunged about 9.5%.
China is Japan’s biggest source of foreign tourists, accounting for nearly a 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% if the number of Chinese arrivals were to drop completely, and by about 0.1 to 0.2% if the number of arrivals fell by about a third.
“Even if the number of visitors decreases by 30% due to heightened tensions, the negative impact will be around 0.1-0.2%,” Prime Minister Abe told Al Jazeera.
Japan’s economy contracted by 0.4% in the three months to September, the first contraction in six quarters, official data released on Monday showed.
Japan’s Chief Cabinet Secretary Yoshihide Suga said at a regular press conference on Monday that the Chinese government’s travel warning was inconsistent with a mutually beneficial relationship and that the Japanese government had requested “appropriate measures” from the Chinese side.
Japan’s chief executive for Asia-Pacific affairs, Masaaki Kanai, departed for China on Monday for talks aimed at easing tensions between the two countries, Japanese media reported.
According to reports, Masaaki Kanai is expected to meet with China’s Liu Jinsong in Beijing to make it clear that the Japanese government has not made any changes to its security policy despite Koichi’s comments regarding Taiwan.
Japan has long been concerned about China’s threat to take control of Taiwan because the autonomous island is close to Japanese territory and located in waters with significant trade.
China considers Taiwan to be part of its territory and has vowed to “unify” Taiwan with mainland China by force if necessary.
Although not formally recognized by most countries, Taiwan has many characteristics of a de facto independent state, including its own military and passport, and a democratically elected president and parliament.
