It was Tuesday afternoon in Beijing when Liu Jinsong, director general of the Department of Asian Affairs of the Chinese Foreign Ministry, stepped out of the Chinese Foreign Ministry building into a sea of cameras. Moments earlier, he had held talks with Kanai Masaaki, director-general of the Japanese Foreign Ministry's Asian and Oceanian Affairs Bureau. Reporters called out as Liu approached the steps: "Are you satisfied with the talks?" 

Liu's answer was crisp and unmistakable: "Of course not."

Asked about the atmosphere, he simply replied – "serious."

The brief exchange set the tone for a week during which China-Japan relations worsened significantly.

Beijing says the downward spiral of the past week is directly triggered by political provocation from Tokyo. During the Chinese foreign ministry's regular briefing on Tuesday, spokesperson Mao Ning confirmed the details of Liu's meeting with Masaaki: China has once again lodged stern representations over Japanese Prime Minister Sanae Takaichi's recent comments on the Taiwan region.

According to Mao, China told Japan that Takaichi's statements seriously violated international law and the basic norms governing international relations. Beijing said her remarks undermined the post-World War II international order, violated the one-China principle, and contravened the spirit of the four political documents that underpin bilateral relations. They also said these remarks fundamentally damaged the political foundation of China-Japan ties and carried "extremely bad nature and influence."

The remarks, Mao said, had sparked public anger and broad condemnation among the Chinese people.

Beginning on November 15, the Foreign Ministry, the Chinese embassy and consulates in Japan, the Ministry of Culture and Tourism, and the Ministry of Education issued successive alerts urging Chinese citizens to exercise increased caution – later, to avoid traveling to Japan altogether.

The warnings triggered a chain reaction in China's travel industry. Major airlines such as Air China, China Eastern, and China Southern offered large-scale, fee-free cancellations for flights to Japan, covering travel through the end of December and, in some cases, extending into 2026. Over ten other carriers followed suit, and several flights, including Chengdu-Sapporo routes, were canceled outright.

Travel agencies halted the sale of Japan tour packages. Online platforms experienced a surge in hotel cancellations, with travelers sharing screenshots of refunded reservations. Routes that usually see activity during late-autumn foliage season became quiet. For Japan's tourism industry – heavily reliant on Chinese visitors – the change was immediate and obvious.

Japanese media have taken notice. Nikkei warned on Tuesday that the sudden collapse in demand "casts a shadow over tourism-driven consumption." On Monday, stocks linked to inbound tourism dropped sharply as markets reacted to the political shock. Chinese tourists are the backbone of Japan's inbound economy: from January to September, 7.48 million visitors from the Chinese mainland traveled to Japan, spending 1.64 trillion yen ($10.58 billion) – nearly a quarter of total inbound tourist expenditure.  

Takahide Kiuchi, a researcher at Nomura Research Institute, predicts that the Chinese government's travel advisory could cut Japan's tourism revenue by about 2.2 trillion yen over the next year, leading to a 0.36-percent decline in Japan's real gross domestic product (GDP).

But the backlash has extended beyond tourism. Analysts point out that investors are increasingly taking political risk into account, as worsening bilateral relations could impact Japanese companies operating in China. Sell-offs have spread to companies heavily involved in China, showing concern about the long-term effects of Tokyo's position. For Japan – which is already experiencing a 1.8-percent annualized contraction in the latest quarter – any ongoing disruption to China-related economic activity arrives at a critical time.

Beijing views these developments as a direct result of Tokyo's decisions. Chinese officials state that Takaichi's remarks disrupted the environment for high-level talks, and damaged the climate for people-to-people exchanges. China's diplomatic signals – ranging from Director General Liu's blunt dismissal of the negotiations to the ministry's precise and forceful language – make it clear that Japan bears full responsibility for restoring bilateral relations.