Part 2/10:
The diplomatic rift was sparked when Prime Minister Sai Takahichi of Japan explicitly warned that China’s use of force against Taiwan could constitute a "survival-threatening" situation for Japan. In response to this rhetoric, China has initiated a boycott of Japanese tourism, leading to significant economic losses. According to the Nomura Research Institute, the cancellation of Chinese tourism arrivals could cost Japan approximately 2.2 trillion yen annually. This boycotting has not only impacted Japan’s hospitality sector but also caused a sharp decline in tourism-related stocks, underscoring how intertwined economic ties are with diplomacy in this region.