Japan’s tourism and retail stocks slide as China warns citizens against travel
Japanese tourism and retail stocks plunged on Monday after China urged its citizens to avoid travelling to Japan, escalating tensions between the two countries over Taiwan.
Prime Minister Sanae Takaichi, a vocal critic of Beijing’s military activity in the region, recently suggested that Japan could take military action if China launched an attack on Taiwan. Her remarks triggered a sharp response from Beijing and heightened concerns in both countries, News.Az reports, citing BBC.
The market reaction was immediate. Shares of major department store operators, including the parent company of the Mitsukoshi and Isetan chains, fell by more than 10 percent. Cosmetics giant Shiseido also saw a steep decline.
China has long been one of Japan’s most important sources of inbound tourism, making the sector particularly vulnerable to political tensions. In Monday’s early trading in Tokyo, stocks of Takashimaya and Fast Retailing — owner of the global Uniqlo brand — dropped by more than 5 percent.
Airlines were also hit, with Japan Airlines and ANA Holdings trading lower. Theme park operator Oriental Land, which runs Tokyo Disney Resort, saw its shares fall around 5 percent.
The sell-off followed a series of warnings and measures from Beijing. On Sunday, the Chinese government advised citizens to reconsider studying in Japan, citing concerns over safety and what it described as rising incidents targeting Chinese nationals. China’s Education Ministry urged students already in Japan to stay alert.
More than 100,000 Chinese students were enrolled in Japanese institutions last year, according to official data.
Chinese airlines — including China Southern, China Eastern and Air China — also offered refunds for flights to Japan over the weekend, adding further pressure to Japan’s tourism outlook.
The dispute has intensified as Taiwan prepares for the possibility of a Chinese military strike. Takaichi told parliament on 7 November that any armed conflict involving China could trigger a “survival-threatening situation” under Japan’s security laws, potentially allowing the Self-Defense Forces to intervene.
A new Kyodo poll released on Sunday showed the Japanese public divided on whether Japan should exercise that right if China attacks Taiwan.
Officials from both countries are expected to hold talks on Tuesday. Chief Cabinet Secretary Minoru Kihara said Beijing’s recent actions run counter to the “mutually beneficial and stable relationship” that leaders from both sides had agreed to pursue.
China insists Taiwan is a breakaway province that must eventually be unified with the mainland, while most people in Taiwan see themselves as part of a separate nation and favour preserving the status quo.
Similar news
