China is weaponizing tourism to punish Japan over Prime Minister Sanae Takaichi’s recent remarks on Taiwan.

With Chinese travelers reportedly canceling trips in large numbers, one economist predicts the resulting losses could shave as much as 0.29 percent off Japan’s gross domestic product.

Why It Matters

Japan has experienced record levels of tourism since the end of COVID-era lockdowns, with arrivals increasing by 48 percent last year. Neighboring China is one of the largest sources of visitors, accounting for 775,500 arrivals in September alone, or 23.7 percent of the total, according to Japan Tourism Agency data.

The loss of significant numbers of Chinese tourists—especially during the autumn season, when Japan’s fall foliage is a major draw—will likely hurt local industries

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