TAIPEI (Taiwan News) — Rising tensions between China and Japan over Prime Minister Takaichi Sanae’s comments on Taiwan could affect travel and business exchanges.
The potential economic impact on Japan could be substantial, as China is Japan’s largest trading partner, Bloomberg reported. Chinese authorities have advised citizens to avoid visiting Japan, airlines are adjusting flight schedules, and some companies are postponing meetings and events, according to Nikkei Asia.
The situation follows Takaichi’s Nov. 7 parliamentary remarks, in which she said that Chinese military action against Taiwan could be considered a “survival-threatening situation,” potentially prompting Japan to take military action. The comments, sensitive given historically delicate relations between the two countries, drew swift responses from China, according to Business Weekly.
On Friday, Chinese authorities issued travel advisories urging citizens to reconsider trips to Japan. The next day, China’s three major state-owned airlines allowed passengers to cancel or reschedule tickets to Japan through the end of the year without penalty.
A significant decline in Chinese tourism could reduce Japan’s economic output by up to NT$443 billion (US$14.2 billion), according to Takahide Kiuchi, executive economist at Nomura Research Institute.
Beyond the financial implications, the tensions are affecting cultural and corporate activities.
Chinese media reported delays for at least two Japanese films, including the new “Crayon Shin-chan” movie originally set for Dec. 6. Several Japanese companies with operations in China have postponed meetings, and some business trips to Japan have been canceled.
Collaborative events are also being disrupted. A three-day forum by Japanese think tank Genron NPO in Beijing was postponed at the request of Chinese authorities, citing Takaichi’s Taiwan remarks.
Macro strategist Homin Lee of Lombard Odier Singapore told Bloomberg that service-sector industries, particularly retail, leisure, real estate, and airlines linked to Chinese tourism, may see modest short-term effects.
Takaichi’s history of support for Taiwan has led to skepticism in Beijing, and her early tenure may be seen by China as an opportunity to gauge how far it can assert pressure, Nanyang Technological University in Singapore Associate Professor Dylan Loh said.
Jennifer Welch from Bloomberg Economics added that China is signaling its stance early in Takaichi’s term, discouraging other countries from similar rhetoric and deterring Tokyo from taking further steps. “Japan is a relatively easy target, and tourism an easy lever to pull,” she said.
