Japan tourism and retail stocks slide after China row
Tourism and retail stocks in Japan fell on Monday after China warned its citizens not to travel to the country as Tokyo and Beijing locked horns over Taiwan.
Japanese Prime Minister Sanae Takaichi, who has been a vocal critic of China and its military activities in the region, suggested this month that Tokyo could take military action if Beijing attacks Taiwan.
Shares of cosmetics company Shiseido tumbled nearly 10%, while department store chain Takashimaya and the owner of global fashion chain Uniqlo lost more than 5% in early trading.
China consistently ranks among the top sources of tourists visiting Japan.
The declines in share prices came after the dispute between Beijing and Tokyo deepened in recent days.
The Chinese government on Sunday urged its citizens to reconsider studying in Japan, citing risks to their security and an increase in crimes targeting Chinese people.
Ministry of Education of China He also told students already in Japan to closely monitor the security situation.
More than 100,000 Chinese students were enrolled in educational institutions in Japan last year, according to a Japanese government survey.
Also over the weekend, Chinese airlines including China Southern Airlines, China Eastern Airlines and Air China offered refunds for flights to Japan.
Takaichi told the Japanese parliament on November 7: “If there are warships and the use of force, no matter what you think about it, it may pose a situation that threatens survival.”
“Survival-threatening situation” is a legal term under Japan’s 2015 security law, meaning that an armed attack against its allies poses an existential threat to Tokyo.
In such a situation, Japan’s self-defense forces could be called upon to respond to the threat.
Taiwan is located approximately 100 km (60 mi) south of the nearest Japanese island.
Beijing views Taiwan as a breakaway province that will eventually become part of the country, and does not rule out using force to achieve this.
However, most Taiwanese see themselves as part of a separate nation; but most are in favor of maintaining the status quo, in which Taiwan does not declare independence from China or merge with it.
