- Japan has sent a diplomatic envoy to Beijing to ease escalating tensions with China over Taiwan.
- The dispute was triggered by Japanese Prime Minister Sanae Takaichi’s remarks about a potential military response to a Chinese attack on Taiwan.
- In response, Beijing has urged its citizens to halt travel to Japan, causing shares in Japanese tourism and retail companies to fall.
- Taiwan’s president has called on China to exercise restraint as diplomatic rhetoric from both sides intensifies.
Japan dispatched a senior diplomat to Beijing on Monday in an effort to de-escalate a rapidly intensifying dispute with China over Taiwan. The move follows a travel warning from Beijing that has already sent shockwaves through Japan’s tourism and retail sectors.
A Shift in Policy Sparks a Firestorm
The diplomatic row ignited after Japanese Prime Minister Sanae Takaichi stated this month that a Chinese attack on Taiwan could be seen as a threat to Japan’s survival, potentially triggering a military response from Tokyo. Takaichi’s comments marked a significant departure from previous administrations, which have typically avoided public discussions on such a sensitive scenario to avoid provoking Beijing.
In response, Masaaki Kanai, a Japanese foreign ministry official, arrived in the Chinese capital to meet with his counterpart. According to media reports, Kanai is expected to clarify that Japan’s fundamental security policy remains unchanged and urge China to avoid actions that could harm bilateral relations.
Economic Fallout Hits Japanese Markets
China’s reaction has been swift and firm. Beijing urged its citizens to halt all travel to its East Asian neighbor, a move that Japan’s Chief Cabinet Secretary called “incompatible with efforts to promote strategic, mutually beneficial ties.” China’s foreign ministry has demanded that Japan retract its “wrongful” remarks.
The travel advisory immediately impacted Japanese stocks sensitive to tourism. Shares for the department store operator Isetan Mitsukoshi plummeted by 11.3%, while Japan Airlines saw its stock drop by 3.7%.
Takahide Kiuchi, an executive economist at the Nomura Research Institute, warned that a sustained drop in Chinese visitors could deliver a significant economic blow. “A drop in visitor numbers on this scale would have a dampening effect exceeding half of Japan’s annual growth,” he stated.
A Region on Edge
The diplomatic tensions have been marked by sharp rhetoric. After Japan summoned China’s ambassador to protest an “extremely inappropriate” social media post by a Chinese consul general, Beijing summoned Japan’s ambassador to issue a “strong protest” over Takaichi’s remarks.
Taiwan’s President Lai Ching-te weighed in on the dispute, stating that China was carrying out a “multifaceted attack” on Japan. “I also urge China to exercise restraint and demonstrate the conduct befitting a major power, rather than becoming a troublemaker for regional peace and stability,” he added.
Analysts believe the tensions could persist for months. Kenji Minemura, a senior research fellow at the Canon Institute for Global Studies, suggested that China’s demand for a retraction is a tactic to “ramp up pressure on Japan,” as it knows Takaichi is unlikely to reverse her statement.
Image Referance: https://www.reuters.com/world/china/japan-sends-envoy-china-bid-calm-escalating-spat-media-2025-11-17/