(MENAFN- Live Mint) Japan on Monday said it has dispatched a senior foreign ministry official to China in an effort to ease rising tensions, following a slump in tourism-exposed stocks in Tokyo amid a diplomatic feud between the two nations, public broadcaster NHK reported.

Masaaki Kanai, a director-general at Japan's Ministry of Foreign Affairs, is expected to meet his counterpart Liu Jinsong on Tuesday, according to media outlet Kyodo.

Here's why the tourism stocks fell

Japan's tourism-exposed stocks slumped on Monday after Beijing issued a travel and study alert for its citizens planning to visit Japan, triggering concerns that a drop in Chinese visitors could weigh on the country's tourism industry.

Beauty and cosmetics company Shiseido, which relies heavily on Chinese spending, fell 9.08% after the alert. Whereas Isetan Mitsukoshi Holdings, the parent company of the Mitsukoshi and Isetan department store chains, plunged by more than 11%, according to data compiled by CNBC.

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Oriental Land, operator of Tokyo Disney Resort, fell by 5.68%. Shares of airline operator ANA Holdings declined 3.35%. Hankyu Hanshin Holdings, a rail, retail and hotel operator, was trading 1.99% lower following the news.

Why did China issue a travel warning?

Beijing on Friday issued a travel advisory for its citizens, saying that Takaichi's remarks put Chinese nationals traveling to Japan at a risk. Chinese airlines responded by offering full refunds or free itinerary changes for scheduled flights to Japan.

China on Thursday accused Japan of intervening in the nation's internal affairs after the Japanese Prime Minister Sanae Takaichi said earlier this month that the use of military force in any Taiwan conflict could be considered a“survival-threatening situation” for Tokyo. Beijing called the remarks“egregious” and demanded a retraction.

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Even though Takaichi refused to retract her comments, she reiterated that she would adopt a more cautious tone when addressing such sensitive matters in parliament.

“These actions by Japan have inevitably raised strong questions and concerns among its Asian neighbors and the international community,” China's Foreign Ministry Spokesperson Lin Jian was quoted as saying by CNBC.

Japan's appeal as a tourist destination

Japan was reportedly the fourth-most popular destination for Chinese travelers in the first 11 months of 2024, according to a Citibank report. Almost one-fifth of international visitors to Japan in 2024 came from China, or around 7 million people, according to data compiled by CNBC.

Tokyo on Saturday urged Beijing to keep its response measured, Japan's top government spokesperson, Minoru Kihara, was quoted by Kyodo as saying, adding that China should take“appropriate measures,” without giving any further details on the specific measures.

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