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China Presses Japan in Beijing Talks as Travel Curbs Jolt Markets

Beijing’s protest over Sanae Takaichi’s Taiwan comments highlights a mix of diplomatic pressure and economic leverage.

Overview

  • Masaaki Kanai met Chinese counterpart Liu Jinsong in Beijing, where China lodged a strong protest over Prime Minister Sanae Takaichi’s remarks, and Tokyo signaled it would not retract them.
  • China advised its citizens to avoid trips to Japan and major airlines offered refunds through year-end, triggering mass cancellations and drops in tourism and retail stocks as economists warned of a potential GDP drag.
  • Japan’s embassy in Beijing urged nationals to avoid crowds and stay vigilant, while China said it would continue to protect the safety of foreign citizens in accordance with the law.
  • Chinese coast guard patrols near the Senkaku/Diaoyu islands and a suspected drone flight near Yonaguni led Japan to scramble fighter jets, extending maritime and aerial friction.
  • Cultural and diplomatic fallout widened with suspended releases of Japanese films in China and no planned meeting between Premier Li Qiang and Takaichi at the G20, even as Tokyo seeks continued dialogue.