Relations between China and Japan have sharply escalated following a statement made by Japanese Prime Minister Sanae Takaichi regarding Taiwan. The diplomatic confrontation has been followed by economic and travel restrictions, impacting citizens of both countries.
On Monday, Japanese tourism and retail-related stocks fell after China advised its citizens to refrain from traveling to Japan. Chinese travelers canceled over half a million travel tickets bound for Japan. In addition, Tokyo urged its citizens in China to enhance security measures and avoid crowded places amid rising anti-Japanese sentiment.
During the same period, the release of Japanese films was suspended, and many cultural and multinational events were canceled. On Tuesday, China’s permanent representative to the UN stated that Japan is “completely unacceptable” as a permanent member of the UN Security Council.
China maintains that “No market” for Japanese seafood. It is noteworthy that a similar restriction was imposed in 2023 when Japan began releasing over 1 million tons of contaminated water into the ocean from the damaged Fukushima nuclear plant. Today’s tension is significantly more acute.
Sanae Takaichi’s stance toward China resembles Shinzo Abe’s policy. Her priorities include strengthening Japan’s defense, particularly on the islands in the East China Sea, including the Senkaku Islands. Takaichi’s push to increase defense spending is supported by Donald Trump, who wants US allies in Northeast Asia to allocate more resources to their own security.
In the short term, the aggravated relations primarily affect economic ties and people-to-people connections. It is clear that the economic restrictions and the limitations on Chinese travelers visiting Japan will significantly damage the Japanese economy.
