An order from Beijing has just left it on the brink of the abyss

A Chinese attack on Taiwan would be “a situation that threatens the survival” of Japan. Sanae Takaichi, Japanese Prime Minister, said it on November 9, and it was the trigger for a diplomatic outbreak between the two nations which to this day remains very tense. One of its victims has been tourism.

what’s happening. Following Takaichi’s statements, the Chinese government advised its citizens to avoid traveling to Japan and it seems that they have listened to him. They count in Nikkei Asia that the entire ecosystem of businesses that made a living from Chinese tourism in Japan is suffering due to this dispute. Some owners of accommodations that had the full sign posted have found themselves with massive cancellations and the Chinese restaurants in the most touristy areas are practically empty.

Why is it important. It is an example of how tensions between China and Japan quickly translate into very concrete economic impacts. Most of Japan’s tourism comes from China and has created an entire industry around it called “yitiao long”, which translates to “a dragon”. It is estimated that it moves around 54,000 million euros per year.

the dragon. It is the name given to the tourism industry for Chinese citizens who visit Japan. They offer itineraries, restaurants, transportation, entertainment, accommodations and much more. The peculiarity is that the services are offered by Chinese-owned businesses, so everything is done in the same language and they even use Chinese payment systems to avoid having to change money. The fact that they are businesses so oriented towards Chinese clientele makes it difficult for them to pivot towards other nationalities.

Tensions. China’s request not to travel to Japan has not been the only consequence after the prime minister’s statements. China has also pressed threatening aerial maneuvers and the decision of leave japanese zoos without pandasa measure that may seem trivial but has a great background.

Goodbye to ambiguity. China’s response to the Japanese Prime Minister’s phrase may seem excessive, but Takaichi’s phrase implies several important details. The first thing is that it breaks with the tradition of previous leaders, whose position on Taiwan had always been ambiguous. On the other hand, the mention of the “survival-threatening situation” is not trivial. It refers to a legal figure that would allow Japan to use force in the event that China attacks Taiwan, even if it does not attack them directly.

Image | Gije Cho, Pexels

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