Japan tourism-exposed stocks sink as China issues travel warning after Takaichi’s Taiwan remarks
News Summary
Japanese tourism-exposed stocks fell on Monday after China issued a travel and study alert for its citizens considering going to Japan, intensifying tensions between the two nations. Shiseido's shares plunged 11%, Isetan Mitsukoshi Holdings lost over 10%, Oriental Land, operator of Tokyo Disney Resort, declined 4.74%, and airline operator ANA Holdings fell 3.48%. China accused Japan of intervening in its internal affairs after Japanese Prime Minister Sanae Takaichi earlier this month suggested that the use of military force in any Taiwan conflict could be deemed a “survival-threatening situation” for Tokyo. Beijing called the remarks “egregious” and demanded a retraction, subsequently issuing a travel advisory citing increased risks for Chinese nationals in Japan. Chinese airlines responded by offering full refunds or free itinerary changes for flights to Japan. Japan was the fourth-most popular outbound destination for Chinese travelers in the first 11 months of 2024, accounting for over 5% of all overseas trips. Chinese visitors made up nearly one-fifth of international visitors to Japan in 2024. This incident underscores a history of nationalist-driven backlash against Japanese businesses in mainland China over politically sensitive issues, such as the 2023 boycott over Fukushima nuclear-plant wastewater release.
Background
Tensions between Japan and China have a long history, particularly concerning historical issues, territorial disputes, and the sensitive status of Taiwan. China consistently views Taiwan as a province under its
In-Depth AI Insights
What are the deeper implications of Japan's increasingly assertive stance on Taiwan and China's economic retaliation for regional economic integration and supply chains? Japanese Prime Minister Sanae Takaichi's remarks, even if labeled