Japanese tourism and retail shares dived on Monday after China warned its citizens to avoid the tourist hot spot in a spat over Prime Minister Sanae Takaichi¡¯s comments on Taiwan.
A senior Japanese official meanwhile arrived in China seeking to defuse the row sparked by Takaichi¡¯s suggestion that Tokyo could intervene militarily in any attack on the self-ruled island.
Asia¡¯s two top economies are closely entwined, with China the biggest source of tourists ¡ª almost 7.5 million visitors in the first nine months of 2025 ¡ª coming to Japan.
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