Japanese tourism and retail stocks experienced a decline on Monday following warnings from the Chinese government advising its citizens against traveling to Japan. This caution comes amid escalating tensions between Tokyo and Beijing over Taiwan. Prime Minister Sanae Takaichi has previously indicated Japan’s right to take military action in response to a potential attack by Beijing on Taiwan.
In early trading, shares of cosmetics company Shiseido dropped nearly 10%, while department store chain Takashimaya and the parent company of Uniqlo, a global fashion brand, fell over 5%. China has historically been one of Japan’s primary sources of tourists, and a decline in Chinese visitors could impact the Japanese economy.
The drop in stocks follows a deepening dispute between the two countries. The Chinese government also advised citizens to reconsider studying in Japan due to safety concerns and a reported increase in crimes targeting Chinese individuals. The Education Ministry in China urged students already in Japan to stay informed about the security situation. According to a Japanese government survey, over 100,000 Chinese students were enrolled in Japanese educational institutions last year.
Additionally, major Chinese airlines, including China Southern Airlines, China Eastern Airlines, and Air China, announced flight refunds for travel to Japan over the weekend.
In a recent statement to the Japanese parliament, Takaichi referred to the potential for conflict as a “survival-threatening situation,” a legal term defined under Japan’s 2015 security law that allows the self-defense forces to respond to threats to allies. Taiwan is situated approximately 100 kilometers (60 miles) from Japan’s nearest island. Beijing regards Taiwan as a breakaway province, while many Taiwanese consider themselves part of a separate nation, preferring to maintain the current status quo.
Source: https://www.bbc.com/news/articles/c5y9n25r0qyo?at_medium=RSS&at_campaign=rss