In a sign of deepening China-South Korea business ties amid the state visit of President Lee Jae-myung starting Sunday, South Korean executives are set to engage with Beijing, while Japanese firms have postponed trips due to fallout from Tokyo's Taiwan remarks.
Beijing's warm reception for South Korean President Lee Jae-myung and accompanying business leaders on a state visit starting January 5 contrasts sharply with Japanese executives putting China trips on hold amid bilateral tensions.
The Japan-China Economic Association (JCEA), Japan Business Federation (Keidanren), and Japan Chamber of Commerce and Industry announced Wednesday the postponement of a planned 200-person delegation visit, with no rescheduling yet. JCEA deputy director Naoya Sawazu cited challenging Japan-China relations, particularly fallout from Prime Minister Sanae Takaichi's remarks suggesting a potential military response to a Chinese attack on Taiwan involving the Diaoyu/Senkaku Islands.
"The current state of Japan-China relations presents challenges," Sawazu told media. "We have made strenuous efforts... but concluded that meaningful outcomes would not be achieved."
Preparations for the six-month-planned mission were halted, reflecting broader de-risking trends. Analysts predict continued Beijing-Tokyo friction in 2026 will push Japanese firms away from the Chinese market.
Conversely, the South Korean visit—hosted by President Xi Jinping and the second leaders' meeting in two months—signals warming ties poised to boost business in areas like critical minerals, AI, and supply chains. This follows efforts to restore relations after previous strains.
