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Beijing-Tokyo diplomatic feud dims Japan’s allure for Chinese wealth and talent

Popular destination for capital feels the chill, with cruise lines cancelling trips, investors selling property and parents questioning if it is safe to send students

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People walk between buildings in Tokyo on November 17. A diplomatic feud between China and Japan is having economic implications. Photo: AFP
He Huifengin GuangdongandMandy Zuoin Shanghai

Some of China’s affluent middle class is unwinding bets on Japan, cashing out in real estate and shelving migration plans as a diplomatic stand-off invites a wait-and-see mood on the once-hot destination for capital and talent.

The reversal follows escalating tensions sparked by Japanese Prime Minister Sanae Takaichi’s remarks on Taiwan last month. Intermediaries report a surge in profit-taking on property and rising pessimism over immigration, with the chill extending to business visits and education.
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Liang Bo, a long-time consultant for studying abroad in Japan, said the most frequent question from Chinese parents in recent weeks is simple: “Is it still safe to study in Japan?”

“Studying abroad and investing require long-term planning,” Liang said. “There’s no need to rush. We still have a few months to observe how things develop.

“Tense bilateral relations and those official warnings [against travelling to Japan] all created invisible pressure.”

The anxiety has spilled into the investment sector.

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Tokyo-based property agent Kin En said the mood among wealthy Chinese owners has flipped in a single month. More investors are weighing sales of flats and hotel assets. Even the yen’s prolonged slide against the yuan – previously a catalyst for buying sprees – has not revived their appetite.
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