China's Ministry of Tourism urges its citizens to avoid traveling to Japan

Shares in Japanese tourism and retail firms fell sharply on Monday after China warned its citizens not to travel to Japan, while a senior Japanese diplomat was due to travel to Beijing amid an escalating row over comments made by prime minister Sanae Takaichi about Taiwan, Report informs referring to The Guardian.

Relations between the two countries have deteriorated dramatically in the past week after Takaichi, a conservative who has hawkish views on China, suggested that Japanese self-defence forces could intervene if a Chinese attempt to invade Taiwan represented a "survival-threatening situation" for Japan.

The comments – a reflection of the views of politicians on the right of Takaichi's Liberal Democratic party – triggered a furious response from Beijing, including calls for Chinese citizens to boycott Japan as a tourist destination, and a coast guard sail-by through the disputed Senkaku islands at the weekend.

In an attempt to prevent tensions from escalating, Masaaki Kanai, the director general of the Japanese foreign ministry's Asia and Oceania bureau, will meet his Chinese counterpart, Liu Jinsong, on Tuesday, Japanese media reported.

Kanai is expected to reassure Liu that Takaichi's comments do not signal a shift in Japanese security policy, and to urge China to refrain from actions that could damage bilateral ties.

The call by Beijing for Chinese travellers to avoid Japan – which was followed by advice that students reconsider taking up places at Japanese universities – is already affecting businesses.

In morning trade on Monday, shares in the Japanese cosmetics firm Shiseido fell 9%, in department store group Takashimaya by more than 5% and in Fast Retailing – the owner of the Uniqlo clothing brand – by more than 4%.

China is the biggest source of tourism to Japan, with Chinese travellers known for spending large sums on cosmetics, clothes and consumer electronics.

Takaichi told Japan's parliament on November 7 that the use of force against self-ruled Taiwan, which is claimed by China, could warrant a military response from Tokyo.