Japanese tourism and retail stocks fell on Monday after China warned its citizens not to travel to the country as Tokyo and Beijing remain locked in a row over Taiwan.

Taiwan will begin distributing millions of civil defence handbooks to households across the island this week, in an unprecedented effort to prepare residents for potential emergencies, including the possibility of a Chinese attack.

The likeliest scenario for 2026 is not a full-fledged conflict, but an increase in China’s political, economic and military pressure against Taiwan

Amid the brewing diplomatic feud between Japan and China, Beijing on Sunday sent Coast Guard ships to patrol near islands claimed by both nations.

Prime Minister Sanae Takaichi said a Chinese attack on Taiwan could constitute “a survival-threatening situation” for Japan, drawing sharp criticisms from Beijing.

Heavyweights clash as election of hawkish PM Sanae Takaichi and US policy unpredictability change calculus in region

China sent a coast guard formation through the disputed Senkaku waters on Sunday, stepping up pressure on Japan amid a growing diplomatic row sparked by Prime Minister Sanae Takaichi’s recent remarks on Taiwan.

Both countries have summoned each other’s ambassadors after Prime Minister Sanae Takaichi said a Chinese attack on Taiwan could draw a military response from Tokyo.