Japanese tourism and retail stocks fell on Monday after China warned its citizens not to travel to the country as Tokyo and Beijing remain locked in a row over Taiwan.
Japan’s Prime Minister Sanae Takaichi, who has been a vocal critic of China and its military activities in the region, suggested this month Tokyo could take military action if Beijing attacked Taiwan.
Shares in cosmetics company Shiseido plunged nearly 10% while department store chain Takashimaya and the owner of global fashion chain Uniqlo fell more than 5% in early trading.
China has consistently ranked among the top sources of tourists visiting Japan.
“If there are battleships and the use of force, no matter how you think about it, it could constitute a survival-threatening situation,” Takaichi said in parliament on 7 November.
A “survival-threatening situation” is a legal term under Japan’s 2015 security law, referring to when an armed attack on its allies presents an existential threat to Tokyo.
In such a situation, Japan’s self-defence forces can be called upon to respond to the threat.
Last week, both countries summoned each other’s ambassadors, with Beijing later urging its citizens to avoid trips to Japan.
Taiwan lies around 100km (60 miles) south of the closest Japanese island.
Beijing sees Taiwan as a breakaway province that will, eventually, be part of the country, and has not ruled out the use of force to achieve this.
But many Taiwanese consider themselves to be part of a separate nation – although most are in favour of maintaining the status quo where Taiwan neither declares independence from China nor unites with it.
By BBC News
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