Japan's retail and tourism sectors faced significant market turbulence this week after China's Ministry of Culture and Tourism issued a travel advisory urging citizens to avoid visiting the country. The warning, effective as of November 17, 2025, triggered sharp declines in shares of major Japanese companies reliant on Chinese tourism and consumer demand.
Cosmetics giant Shiseido saw its stock plummet by 11.4%, marking its steepest drop since April 2025. Retail chains Pan Pacific International Holdings and Isetan Mitsukoshi fell by 9.7% and 10.7%, respectively, while Fast Retailing, parent company of Uniqlo, slid 6.9%. Tourism-related businesses like Oriental Land (operator of Tokyo Disneyland) and Japan Airlines also experienced declines of up to 5.1%.
The economic fallout extended to cultural exchanges, with two Japanese films—Crayon Shin-chan the Movie and Cells at Work!—postponing their scheduled releases in China. Analysts attribute the tensions to remarks made earlier this month by Japanese Prime Minister Sanae Takaichi, who suggested potential military intervention in the Taiwan Strait during a November 7 Diet session. China has repeatedly emphasized that Taiwan is an inalienable part of its territory and opposes any external interference in cross-strait affairs.
Market observers warn that prolonged strain in China-Japan relations could further impact bilateral trade, which totaled $378 billion in 2024. Business leaders are urging diplomatic dialogue to stabilize ties amid growing regional uncertainties.
