China and Japan are facing a sharp economic downturn after Tokyo’s Prime Minister, Sanae Takaichi, made recent comments about a possible Chinese attack on Taiwan. The remarks were unprecedented for a Japanese leader, which triggered a series of economic and cultural consequences between Japan and China.
The Chinese Commerce Ministry said trade cooperation between the two countries had taken a “great” hit, and warned of “necessary measures” if Japan “insists on going down the wrong path”. One of the most vital and immediate pressure points in seafood. Under current circumstances, China’s Foreign Ministry also suggested there would be “no market” for Japanese seafood, after Japanese media outlets NHK and Kyodo reported about a potential import suspension from Beijing. Tokyo has not received an official note, but the foreign ministry’s tone “raised the prospect” of an imminent ban.
The potential suspension would follow China’s restrictions imposed in 2023 over the release of treated Fukushima wastewater. Imports resumed earlier this year. Before the 2023 ban, China (including Hong Kong) accounted for more than a fifth of Japan’s seafood export market.
Tokyo is trying to avoid escalation and has taken diplomatic steps. Japan reiterated that its One China policy remains unchanged and sent senior envoys to Beijing for talks. According to previous reports, Chinese Premier Li Qiang has no plans to meet Takaichi during the G20 summit in South Africa. According to NHK, Japanese officials protested against inflammatory social media posts by a Chinese diplomat and requested corrective action.
Analysts say that China’s retaliatory steps against specific sectors such as fisheries, tourism, and entertainment will not have a political impact on Tokyo. As one expert at Hosei University told CNN, dialogue may be the only path Japan can maintain “while waiting for an opportunity for China to de-escalate.”
