Stocks Decline After Travel Advisory
Japan's Prime Minister Sanae Takaichi, who has been vocal about her views on China and its militaristic actions, suggested that the nation would consider sending military help if Beijing invaded Taiwan. These statements raised tensions, resulting in a dramatic plunge in several Japanese companies.
An owner of Hirata, a major department store chain, fell by over 10%. Shiseido, a major cosmetics company, also suffered considerable losses. China is one of Japan's largest suppliers of tourists; therefore, the announcement will greatly influence the domestic market.
Early in Tokyo, stocks of Takashimaya and the owner of retail clothing giant Uniqlo fell by over 5%. Airline stocks, including Japan Airlines and the ANA Holdings, were also down, while Oriental Land, the owner of Tokyo Disneyland Resort, saw its shares down around 5%.
China's Advisories Regarding Security Concerns and Rising Crime
Things escalated over the weekend after China recommended that students rethink studying in Japan because of worries over safety and rising crimes against Chinese nationals. The Ministry of Education of China even advised Chinese students now studying in Japan to be cautious and pay attention to the security situation.
Over 100,000 Chinese students were enrolled in Japan, according to Japan's own data last year. As a result of rising tensions, several Chinese carriers, which included China Southern Airlines, China Eastern Airlines, and Air China, announced that they would obtain refunds for flights from China to Japan.
Increasing Debate on Japan's Security Role
On November 7, Takaichi made a statement in Parliament that if a battleship or force were present, this could be considered a "survival-threatening situation" under Japan's 2015 military statute. A survival-threatening situation constitutes armed action or force used against an ally, which could pose a serious threat to Japan, thus justifying a response from Japan's self-defence forces.
Taiwan is located just over 100km (62 miles) from Japan's nearest island, making this issue of greatest sensitivity. According to a poll conducted by Kyodo, released on Sunday, the Japanese public is divided about whether Japan should use its self-defence rights if China invaded Taiwan.
Japanese and Chinese heads of state will meet on Tuesday. Chief cabinet secretary Minoru Kihara stated that China's actions were inconsistent with the direction agreed to by heads of state in establishing a stable relationship for mutual benefit.
Beijing claims that Taiwan is a breakaway province and will eventually reunify with China, and that possible means to achieve this will include military action. Many individuals in Taiwan identify as having a separate national identity; however, most individuals would prefer to maintain the status quo, which does not include war or reunification.
