China's latest warning that there is "no market" for Japanese seafood has deepened an already volatile diplomatic standoff between Beijing and Tokyo, adding economic pressure to a dispute triggered by Japanese Prime Minister Sanae Takaichi's recent comments about Taiwan. The tensions, now among the most serious between the two Asian powers in years, have sent ripples through regional markets, disrupted travel and trade, and sharpened geopolitical anxieties across East Asia.
Japanese outlets Kyodo News and NHK reported Wednesday that China had notified Tokyo of a new suspension of seafood imports, months after Beijing partially eased restrictions tied to the Fukushima wastewater release. China's foreign ministry signaled support for the move, saying Japan had "failed to provide the technical documentation it committed to" and emphasizing rising public anger over Takaichi's remarks. Foreign ministry spokesperson Mao Ning declared there would be "no market for Japanese seafood in the current climate," even if imports resumed.
The dispute escalated after Takaichi told Japan's parliament that a Chinese attack on Taiwan would constitute "a survival-threatening situation," potentially triggering Japan's 2015 collective self-defense laws. Beijing immediately condemned the comments as a "military threat," accusing Takaichi of reviving "prewar militarism." China has since demanded that Tokyo retract the remarks and warned that bilateral ties have suffered "fundamental damage."
Japan's government maintains that its policy remains unchanged. Chief Cabinet Secretary Minoru Kihara said Tokyo has not received official confirmation of a new seafood ban but acknowledged that Beijing's statements have heightened the risk of additional punitive measures. Previous Japanese leaders have avoided describing Taiwan contingencies in military terms to prevent economic retaliation from China, Japan's largest trading partner.
Economic pressure intensified rapidly following Beijing's travel advisory last week. Air China, China Eastern and China Southern began offering refunds or free itinerary changes for flights to Japan. Japanese tourism operators reported sharp losses, with East Japan International Travel Service estimating that cancellations have wiped out 70% of its remaining bookings for the year. It was "a huge loss for us," vice president Yu Jinxin told CNN, warning that a prolonged dispute would create "significant" strain.
Tourism disruptions followed a series of symbolic and military gestures from Beijing. Over the weekend, China deployed a coast guard fleet through contested waters near the Senkaku Islands and flew military drones past Yonaguni Island near Taiwan's east coast. Chinese banks reportedly instructed staff to avoid travel to Japan, while Japanese film releases and cross-cultural events were suspended across China.
Before the initial 2023 ban, China-including Hong Kong-accounted for more than one-fifth of Japan's seafood exports, making the sector highly vulnerable to geopolitical pressure. Beijing claims its renewed concerns relate to monitoring the Fukushima water discharge, though the timing has reinforced perceptions that the suspension is part of its broader retaliation strategy.
Diplomatic messaging has grown sharper. Mao Ning said Wednesday that Takaichi's "erroneous remarks on major issues such as Taiwan" had created nationwide outrage in China. She added that unless Tokyo retracts them, "China will have no choice but to take further measures." China's representative to the United Nations, Fu Cong, said Japan was "totally unqualified" for a permanent Security Council seat due to the controversy.
The fallout underscores how quickly geopolitical tensions can trigger market volatility and real economic damage. Shares in Japanese tourism and retail companies fell sharply at the start of the week, and airlines, hotels and department stores are bracing for continued strain. With nearly 7.5 million Chinese visitors to Japan this year before the dispute began, the economic impact of reduced travel could spread well beyond the seafood sector.
Takaichi, a defense hawk who visited Taiwan earlier this year, has previously urged stronger cooperation on "defense challenges" and met Taiwan's representative at the APEC summit-actions that Beijing condemned. She also met Chinese leader Xi Jinping at the summit, telling him Japan hoped China would resume beef and seafood imports, leaving analysts to note the stark contrast between diplomatic outreach and the current rupture.
