Japan said on Monday it had sent a senior foreign ministry official to China in a bid to ease rising tensions after Tokyo’s tourism-exposed stocks plunged amid a diplomatic spat between the two nations, public broadcaster NHK reported.
Masaaki Kanai, director general of Japan’s foreign ministry, is expected to meet his counterpart Liu Jinsong on Tuesday, Kyodo media reported.
Here’s why travel stocks fell
Japanese shares exposed to the tourism industry fell on Monday after Beijing issued a travel and study advisory for its citizens planning to visit Japan, raising concerns that a drop in Chinese visitors could weigh on the country’s tourism industry.
Cosmetics and beauty company Shiseido, which relies heavily on Chinese spending, fell 9.08% after the warning. While Isetan Mitsukoshi Holdings, the parent company of the Mitsukoshi and Isetan department store chains, fell more than 11%, according to data compiled by CNBC.
Oriental Land, operator of Tokyo Disney Resort, fell 5.68%. Shares in airline operator ANA Holdings fell 3.35%. Hankyu Hanshin Holdings, a rail, retail and hotel operator, traded 1.99% lower on the news.
Why did China issue a travel warning?
Beijing issued a travel advisory for its citizens on Friday, saying Takaichi’s remarks put Chinese citizens traveling to Japan at risk. Chinese airlines responded by offering full refunds or free itinerary changes for scheduled flights to Japan.
China on Thursday accused Japan of interfering in the country’s internal affairs after Japanese Prime Minister Sanae Takaichi said earlier this month that the use of military force in any conflict on Taiwan could be considered a “survival-threatening situation” for Tokyo. Beijing called the remarks “outrageous” and demanded a withdrawal.
While Takaichi refused to retract her comments, she reiterated that she would exercise more caution when dealing with such sensitive matters in parliament.
“These actions by Japan have inevitably raised strong questions and concerns among its Asian neighbors and the international community,” Chinese Foreign Ministry spokesman Lin Jian said, according to CNBC.
The attractiveness of Japan as a tourist destination
Japan was reportedly the fourth most popular destination for Chinese travelers in the first 11 months of 2024, according to a Citibank report. Nearly one-fifth of Japan’s international visitors in 2024 came from China, or about 7 million people, according to data compiled by CNBC.
Tokyo on Saturday urged Beijing to keep its response measured, Japanese government spokesman Minoru Kihara was quoted as saying by Kyodo, adding that China should take “appropriate measures,” without giving any further details on specific measures.
