Japan Tourism and Retail Stocks Fall as China Issues Travel Warning
Tokyo, November 17, 2025 – Shares in Japanese tourism and retail companies plunged today after China advised its citizens to avoid travel to Japan, escalating tensions between the two nations. The warning follows recent diplomatic friction over the Senkaku/Diaoyu islands and comments from Japan’s new security chief regarding Taiwan.
Sanae Takaichi, Japan’s security chief, stated that a Taiwan emergency involving “battleships and the use of force” could be considered a threat to Japan’s survival.this statement, made despite Japan’s self-imposed restrictions on military action except in cases of existential threat, has drawn a sharp response from Beijing.
the Chinese coastguard confirmed last week that its ships conducted a “rights enforcement patrol” in waters around the Senkaku/Diaoyu islands, which are administered by Japan but claimed by China. These actions, coupled with Takaichi’s remarks, prompted China to summon the Japanese ambassador and issue the travel advisory.
Japan’s government maintains its position, established in a 1972 joint communiqué, that it “fully understands and respects” China’s claim that Taiwan is an inalienable part of the People’s republic of China.However, Takaichi, a former critic of China and ally of the late Shinzo Abe, has previously advocated for closer ties with Taiwan, describing the island as a “staunch friend” and meeting with Taipei’s representative at the recent Apec summit.
Despite an apparently cordial first meeting with Chinese leader Xi Jinping at the Apec summit in South Korea, relations remain strained. China and Japan are meaningful trading partners, but historical mistrust and ongoing territorial disputes continue to challenge the relationship.
