Tokyo’s diplomatic feud with China threatens to undermine the tourist boom that boosted Japanese retailers such as Uniqlo, Muji and Don Quijote and helped reshape their business models.
Chinese visitors to Japan, the second-biggest cohort, plunged 61 per cent in January compared with the same month a year ago. This followed a slide of 45 per cent in December, bringing the first overall fall in tourists travelling to the country in four years, according to official data.
The decline in Chinese visitors meant the amount they spent in Japan in the last three months of 2025 fell by 17.6 per cent to $2.2bn.
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