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ChinaJapan Dispute Escalates as Talks Yield No Breakthrough and Travel Boycott Gathers Pace

China’s travel curbs are already cutting Japan-bound trips, pressuring tourism stocks.

Overview

  • Senior officials Masaaki Kanai and Liu Jinsong met in Beijing, where China lodged a strong protest and demanded Prime Minister Sanae Takaichi retract her Taiwan remarks, with no sign of compromise.
  • Japan says Takaichi’s comments align with existing policy on a ‘survival‑threatening situation’ under its 2015 security laws, and there is no retraction.
  • China’s advisory against travel to Japan triggered widespread airline refunds and an estimated roughly 500,000 ticket cancellations, while at least two Japanese film releases in China were suspended.
  • Tokyo urged Japanese nationals in China to heighten vigilance and avoid crowds, as Beijing stated it would protect the safety of foreign citizens in China according to law.
  • Security signaling continued with Chinese coast guard patrols near the Senkaku/Diaoyu Islands and a reported drone flight that prompted a Japanese fighter scramble, while Nomura estimated a potential 1.79 trillion yen GDP hit if Chinese tourism slumps.