Japan's tourism sector risks losing over 2 trillion yen ($12.73 billion) amid escalating tensions with China following controversial statements about the Taiwan region by Japanese Prime Minister Sanae Takaichi, according to Tokyo-based economist Hideo Kumano. The warning comes as over 491,000 flight cancellations by Chinese travelers were reported after Beijing issued travel advisories for Japan.
Kumano, chief economist at Dai-ichi Life Research Institute, told China Media Group that sustained diplomatic friction could devastate local economies dependent on Chinese tourism. "The current strain in China-Japan relations isn't just political – it's becoming an economic time bomb," he stated.
The crisis coincides with Japan's 21.3-trillion-yen stimulus package approval on November 21, 2025, designed to counter inflation and U.S. trade pressures. However, Kumano criticized the timing: "Injecting fiscal stimulus during inflation risks weakening the yen further and accelerating price hikes." He warned that reliance on government bonds to fund the package might spike long-term interest rates, cooling economic activity.
Analysts suggest the situation underscores how regional political sensitivities increasingly impact global economic stability. For updates on evolving China-Japan relations, visit this link.
