Japan-China Diplomatic Spat Triggers Mass Tourist Cancellations and Economic Fears
A diplomatic row between Japan and China has hit tourism hard. After Japanese Prime Minister Sanae Takaichi’s comments on Taiwan, Beijing issued a travel warning on 7 November. Chinese visitors, who make up a quarter of Japan’s tourists, are now cancelling trips in large numbers.
The impact was immediate. Wu Weiguo, a Shanghai travel agency manager, said 90% of his clients demanded refunds for Japan bookings. Hotels relying on Chinese guests faced a wave of cancellations, while retail and tourism stocks in Japan dropped sharply—most have yet to bounce back.
In Tokyo’s Asakusa district, shop manager Shiina Ito noticed the difference quickly. Chinese customers, who once made up half her clientele, have nearly disappeared. Despite this, many local businesses have downplayed concerns about long-term damage.
The dispute has also raised broader economic worries. Kimi Onoda, Japan’s minister of economic security, warned about the dangers of depending on a country willing to use economic pressure. Beyond tourism, Japanese firms in electronics and automotive sectors face risks due to their reliance on Chinese supply chains for key materials.
China remains Japan’s top source of tourists, with nearly 7.5 million visits in the first nine months of 2025. Chinese travellers also spend more on average than other foreign visitors. The current slowdown highlights how vulnerable Japan’s economy is to shifts in diplomatic relations.
