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Diplomatic Spat Between Tokyo and Beijing Threatens Japan's Already Fragile Economy

Chinese state-owned travel agencies cancel group tours after Japan's prime minister warned of Taiwan conflict risks; China accounts for 25% of Japan’s visitors in 2025, officials said.

  • On Friday, Beijing advised citizens against travelling to Japan, prompting state-owned Chinese travel agencies to cancel pre-booked group bookings for travellers to Japan.
  • China's state media called Takaichi's remarks 'extremely egregious,' leading Beijing to summon Japan's envoy and deploy ships near the Senkaku islands, following her comments on Nov. 8.
  • Mainland Chinese visitors accounted for about 5.7 million arrivals in 2025, nearly 23% of visitors, while Kintetsu & Miyako Hotels and The Imperial Hotel reported cancellations and Chinese airlines waived fees.
  • To be sure, cancellations among individual travellers were limited as at Nov 18, and the rise of independent travel through mobile apps and social media platforms has limited the advisory's reach, with Xiaohongshu users and a 300-member group chat showing mixed reactions.
  • Experts warn the dispute could last months, with Takahide Kiuchi estimating a 1.79 trillion yen GDP loss and Angrick noting halved Chinese arrivals could reduce growth by 0.2 percentage point.
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The crisis between the two countries stems from the words of the Japanese Prime Minister, Sanae Takaichi, who stated on 7 November that armed attacks against Taiwan could justify the sending of Japanese troops to defend the island.

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Bloomberg broke the news in United States on Monday, November 17, 2025.
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