Japan to dispatch senior envoy to China, NHK says, as travel warning drives tourism selloff in Tokyo

Japan on Monday said it dispatched a senior foreign ministry official to China to ease rising tensions, public broadcaster NHK reported, as tourism-exposed stocks in Tokyo slumped amid the diplomatic feud.

Masaaki Kanai, a director-general at Japan’s Ministry of Foreign Affairs, is expected to meet his counterpart Liu Jinsong on Tuesday, according to media outlet Kyodo.

Japan’s tourism-exposed stocks fell Monday after Beijing issued a travel and study alert for its citizens considering going to Japan.

Beauty and cosmetics firm Shiseido, which relies heavily on Chinese spending, plunged 11%. Isetan Mitsukoshi Holdings, the parent company of the Mitsukoshi and Isetan department-store chains, lost over 10%.

Oriental Land, operator of Tokyo Disney Resort, declined 4.74%. Shares of airline operator ANA Holdings fell 3.48%. Hankyu Hanshin Holdings, a rail, retail and hotel operator, was more than 2% lower.

China on Thursday accused Japan of intervening in its internal affairs after Japanese Prime Minister Sanae Takaichi said earlier this month that the use of military force in any Taiwan conflict could be deemed a “survival-threatening situation” for Tokyo. Beijing called the remarks “egregious” and demanded a retraction.

A day later, Beijing issued a travel advisory, saying Takaichi’s remarks had raised risks for Chinese nationals in Japan. Chinese airlines responded by offering full refunds or free itinerary changes for flights to Japan.

China’s foreign ministry said Takaichi’s remarks amounted to a provocation. “These actions by Japan have inevitably raised strong questions and concerns among its Asian neighbors and the international community,” China’s Foreign Ministry Spokesperson Lin Jian said Friday, according to a Google translation of his remarks.

Japan was the fourth-most popular outbound destination for Chinese travelers in the first 11 months of 2024, accounting for more than 5% of all overseas trips, according to a Citibank report, citing data from the China Tourism Academy. Almost one-fifth of international visitors to Japan in 2024 came from China, or around 7 million people, according to provisional data from the Japan National Tourism Organization.

Tokyo on Saturday urged Beijing to keep its response measured, Japan’s top government spokesperson, Minoru Kihara, was quoted by Kyodo as saying, adding that China should take “appropriate measures,” without offering details.

These flare-ups come amid a history of nationalist-driven backlash against Japanese businesses in the mainland. In 2023, Chinese consumers, angered by Japan’s release of treated Fukushima nuclear-plant wastewater, mounted a boycott of Japanese cosmetics and household-goods brands.