China’s economic retaliation against Takaichi is just beginning

The diplomatic relationship between China and Japan has taken a sharp turn towards confrontation following provocative remarks by Japanese Prime Minister Sanae Takaichi regarding Taiwan. In response, Chinese analysts and policymakers have proposed stringent measures against Japan, including banning exports of rare earths and halting imports of Japanese seafood and agricultural products. Gao Zhikai, a prominent Chinese academic and former diplomat, suggested these measures in a social media video, emphasizing the need for a robust response to Japan’s pro-Taiwan stance. Gao also recommended canceling visa-free arrangements for Japanese passport holders and barring entry to those who visited the controversial Yasukuni Shrine in the past year. These proposals have already begun to materialize, with China suspending imports of Japanese aquatic products and terminating bilateral consultations on Japanese beef exports. The rare earths issue is particularly critical, as Japan relies heavily on China for these materials, essential for its high-tech industries. The situation has been further exacerbated by China’s issuance of travel advisories and study-abroad alerts, citing deteriorating security conditions in Japan. The economic impact is significant, with Chinese travel platforms canceling hundreds of thousands of tickets to Japan, leading to substantial revenue losses for Japanese businesses. The tensions stem from Takaichi’s recent comments on Taiwan, which Beijing views as a direct challenge to its sovereignty. China has warned of severe consequences if Japan intervenes militarily in the Taiwan Strait, with state media highlighting the risks of a hostile security environment and international criticism. Despite diplomatic efforts to stabilize ties, including a recent meeting between officials from both countries, progress has been minimal. The situation remains volatile, with both nations standing firm on their positions.