Japan Seeks Diplomatic Solution to China Tension

17 November 2025 · B1 Level

Japan is attempting to defuse a rapidly escalating diplomatic crisis with China over Taiwan that has already caused economic damage and raised regional security concerns.

The Controversy Begins

The dispute erupted after Prime Minister Sanae Takaichi told Japanese lawmakers on November 7 that a Chinese attack on Taiwan threatening Japan's survival could trigger a military response. This was a significant departure from previous administrations, which avoided discussing such scenarios publicly to prevent provoking Beijing, which claims Taiwan as its territory.

Takaichi's comments came just one week after she met Chinese leader Xi Jinping and agreed to pursue stable relations. Her statement reflected the views of conservative politicians in her Liberal Democratic Party who take a hawkish stance on China.

Rapid Escalation

China's reaction was swift and severe. The day after Takaichi's remarks, China's Consul General in Osaka made threatening statements on social media, prompting Japan to summon China's ambassador in protest. Several Japanese politicians called for the diplomat's expulsion.

By Thursday, China had summoned Japan's ambassador for the first time in over two years to lodge a formal protest. On Friday, China warned that Japan would face a "crushing" military defeat if it intervened over Taiwan. Beijing also issued travel warnings urging Chinese citizens to avoid Japan and reconsider studying at Japanese universities.

The tensions escalated further on Sunday when Chinese coast guard ships sailed through waters around the disputed Senkaku Islands, which Japan controls but China claims as the Diaoyu Islands. These islands have been a flashpoint since Japan nationalized them in 2012.

Economic Consequences

The dispute is already affecting Japan's economy. China is Japan's largest source of tourism, and Chinese travelers are known for spending heavily on cosmetics, clothing, and electronics. On Monday, shares in tourism-related companies fell sharply. Department store operator Isetan Mitsukoshi dropped more than 10%, while Japan Airlines fell 4.4%. Cosmetics firm Shiseido and clothing retailer Uniqlo also saw significant declines.

Economists warn that a prolonged dispute could seriously damage Japan's economy. A 25% drop in Chinese visitors, similar to the 2012 island dispute, could reduce Japan's annual growth by more than half.

Diplomatic Efforts

Japan is now working through diplomatic channels to resolve the crisis. Masaaki Kanai, director general of the Foreign Ministry's Asia and Oceania bureau, will meet his Chinese counterpart Liu Jinsong in Beijing this week. Kanai is expected to clarify that Takaichi's comments do not represent a shift in Japan's security policy and to request that China refrain from actions that further harm bilateral relations.

Japan's Chief Cabinet Secretary emphasized that communication channels remain open and called China's travel warning incompatible with promoting mutually beneficial relations.

Strategic Context

Taiwan's proximity to Japan makes the island strategically important. Located just 110 kilometers from Japan's westernmost islands, Taiwan also sits near vital shipping lanes that Japan relies on for oil and gas imports. Additionally, Japan hosts the largest concentration of U.S. military forces outside the United States.

Taiwan's President Lai Ching-te has called on China to exercise restraint and criticized what he termed a "multifaceted attack" on Japan.

Despite being key trading partners, China and Japan have a relationship frequently tested by historical grievances and territorial disputes. Both governments now face the challenge of managing public opinion while preventing further deterioration of ties.