A diplomatic spat over Japanese Prime Minister Sanae Takaichi's remarks on Taiwan prompted China to warn its citizens against traveling to Japan, leading to fewer Chinese tourists, but Tokyo business owners largely dismiss concerns about sales impacts. Managers report that increased Japanese shoppers have offset the drop. In China, group tour cancellations are surging.
On November 7, Japanese Prime Minister Sanae Takaichi implied that Tokyo could intervene militarily if a Chinese attack on Taiwan threatened Japan's survival, souring Beijing-Tokyo ties. China responded by advising its citizens to avoid travel to Japan, sparking fears for ritzy boutiques, noodle joints, and hotels reliant on tourist spending, but Tokyo businesses largely shrugged off the anxiety.
Shiina Ito, manager at a Tokyo jewelry shop in the Asakusa district, told AFP, 'Since there are fewer Chinese customers, it's become a bit easier for Japanese shoppers to visit, so our sales haven't really dropped.' Chinese buyers typically make up half her clientele amid tourist-filled alleys.
In Ginza's upscale area, Yuki Yamamoto, manager of an Instagram-famous udon restaurant, said, 'I don't think there's been any sudden, dramatic change,' despite estimating half his queued diners are usually Chinese. 'Of course, if customers decrease, that's disappointing for the shop. But Japanese customers still come regularly, so we're not extremely concerned.'
China remains Japan's top tourist source, with 7.5 million visitors in the first nine months of 2025— a quarter of all foreigners—splashing $3.7 billion in the third quarter. Last year, each Chinese tourist spent 22 percent more than others, per the Japan National Tourism Organization. Transport Minister Yasushi Kaneko noted the issue is 'not something to get all worked up about,' citing rises from other countries.
In Shanghai, travel agency manager Wu Weiguo said the 'biggest impact is on group travel,' with 90 percent of clients seeking refunds for Japan trips, though only 12 percent of last year's Chinese visitors came via organized tours, down from 43 percent in 2015. At Gamagori Hotel in central Japan, owner Keiko Takeuchi reported, 'Cancellations from travel agencies in China are coming one after another,' as Chinese nationals comprise 50 to 60 percent of her customers. 'I hope the situation calms down quickly, but it seems it will take time,' she fretted.
Economic security minister Kimi Onoda warned of risks from 'relying too heavily on a country that resorts to economic coercion whenever it is displeased,' affecting not just supply chains but tourism. Retail and tourism stocks plunged post-warning but have yet to fully recover.
