China issued a rare nationwide travel warning for Japan on Sunday, sending shockwaves through Tokyo’s financial markets and intensifying diplomatic strains between the two Asian powers. Beijing’s foreign ministry urged Chinese citizens to postpone non-essential trips, citing what it called an increasingly “unfriendly public atmosphere” toward Chinese nationals in Japan.
The announcement came just days after a high-profile meeting in Tokyo between Sanae Takaichi, secretary-general of Japan’s ruling Liberal Democratic Party, and a delegation of Taiwanese officials. Beijing condemned the talks as an attack on its “One China” policy, marking another flashpoint in the already tense Japan–China relationship.
The statement from China had an immediate ripple effect across Japanese markets. Companies that depend heavily on Chinese visitors and consumer spending were hit the hardest. Airline giant ANA Holdings slumped more than six percent by midday trading, while Japan Airport Terminal Co., operator of Haneda Airport and a major duty-free retailer, saw its shares tumble nearly nine percent. Cosmetic powerhouse Shiseido suffered one of the steepest drops, sliding more than ten percent as investors reacted to the likelihood of declining sales from Chinese tourists.
Prior to the pandemic, travelers from China accounted for the largest share of inbound arrivals to Japan and generated more than 30 percent of the country’s total tourism spending. The sector had been counting on a steady rebound from Chinese visitors as borders reopened and consumer travel recovered.
Economists warn that the advisory could slow Japan’s fragile tourism revival and further strain retailers, luxury brands, and transportation companies that rely on Chinese demand. While no formal restrictions have been imposed on travel, previous advisories from Beijing have historically led to dramatic declines in outbound tourism.
Japanese officials have not yet issued a formal response, but analysts note that tensions surrounding Taiwan remain one of the most sensitive issues between Tokyo and Beijing. With regional diplomacy already strained, the latest dispute threatens to deepen economic uncertainty at a time when Japan is seeking sustained growth through tourism and reopening initiatives.
For now, businesses across Japan are bracing for potential disruptions as they await signs of whether the advisory will escalate or ease in the weeks ahead.
