China's three major state-owned airlines—Air China, China Eastern Airlines, and China Southern Airlines—reported a combined loss of approximately 8.2 billion yuan in the first half of this year. (Facebook screenshot)
[People News] Since late last year, the CCP has imposed sanctions on Japan's tourism industry in retaliation for Japanese Prime Minister Kishi Matsumoto's comments regarding 'Taiwan having issues,' believing this would severely damage Japan's tourism sector. However, while the number of Chinese tourists visiting Japan has decreased, an influx of tourists from around the world has instead boosted Japan's tourism profits beyond previous years. Concurrently, the three major state-owned airlines in China reported a total loss of around 8.2 billion yuan in the first half of this year.
Inflicting 800 casualties on the enemy while injuring 1,000 of oneself
Senior media figure Akio Yaita noted in a Facebook post on September 16 that he learned from Japanese media reports that China's three major state-owned airlines—Air China, China Eastern Airlines, and China Southern Airlines—suffered a total loss of approximately 8.2 billion yuan in the first half of this year, equivalent to about 190 billion yen. While rising oil prices are a significant factor, another important aspect is that the CCP itself eliminated the most profitable routes to Japan. Following Prime Minister Kishi Matsumoto's remarks about 'Taiwan having issues' in parliament last November, Sino-Japanese relations quickly soured. The CCP government urged citizens to avoid traveling to Japan, leading Chinese airlines to significantly cut back on flights. During this year's Spring Festival, as many as 49 routes to Japan were completely suspended.
He stated that domestic consumption in China is currently weak, and people are very sensitive to ticket prices. Additionally, the high-speed rail network is extensive. For the route from Beijing to Shanghai, if the plane ticket is slightly more expensive, many travelers will opt for high-speed rail instead. It is quite challenging for airlines to compensate for costs by raising prices on domestic flights. In contrast, the situation for flights to Japan is different. With a significant number of business travelers and tourists, the market is well-established, and even a slight increase in ticket prices does not deter most customers from flying. Ironically, just when oil prices are rising and airlines are most in need of increasing ticket prices, the Chinese Communist Party (CCP) has eliminated this crucial market due to political reasons.
What is even more surprising is that Japan has not experienced the severe impact that was expected. From January to July this year, the number of mainland Chinese travelers to Japan dropped by 56.3%, with over half of them disappearing. However, during the same period, the overall number of foreign visitors to Japan only decreased by 1.7%. By July, the number of foreign tourists visiting Japan reached 3.44 million, setting a record for the highest number of visitors in July in history. This means that while Chinese tourists are absent, visitors from Korea, Taiwan, Southeast Asia, Europe, and the United States quickly filled the void. The CCP had hoped to leverage the large tourist market to pressure Japan, but instead, Japan remained resilient, and Chinese airlines lost one of their most lucrative markets.
Mikio Yabuta noted that this situation reflects a recurring challenge the CCP faces in recent years when attempting to use economic measures to resolve diplomatic issues. The economy is interdependent, and every action taken incurs a cost. If one is not cautious, it can result in 'killing 800 enemies while wounding 1,000 of your own.'
Sanctioning Japanese tourism ultimately cuts off the financial lifeline for its own citizens.
The Chinese Communist Party frequently resorts to weaponizing tourism, employing measures such as suspending flight routes and restricting mainland tourists from traveling to Japan as forms of punishment. While this may appear impressive, it is essentially a political farce that results in 'zero enemy casualties and a thousand self-inflicted wounds.'
Many netizens who are familiar with industry operations have noted that in recent years, the tourism of Chinese group travelers to Japan has developed into a highly closed 'one-stop' industrial chain. The hotels, Chinese restaurants, ski resorts, as well as bus companies, tour guides, and translators that mainland tourists frequent are predominantly run by Chinese nationals in Japan. The travel ban imposed by the Chinese Communist Party has not fundamentally harmed Japan's tourism sector; rather, it has cut off the livelihoods of overseas compatriots and their own citizens, once again demonstrating that for the sake of political theatrics, they can completely disregard the well-being of the people. This kind of clumsy self-sabotage not only fails to yield any leverage but also earns the title of 'General Accelerator' as a self-inflicted disgrace.
Interestingly, with fewer mainland tourists, the quality of travel in Japan has actually improved!
What further complicates matters for Beijing is that Japan's tourism industry, in the absence of mainland tourists, has not only avoided a downturn but has also received enthusiastic responses from global travelers. Many international tourists and local residents have remarked that in the past, the overwhelming presence of mainland tourists overcrowded Tokyo, Osaka, and various attractions, leading to noise and disorder that significantly detracted from the travel experience. Now, with the reduction in noise and crowds, places like the Highlands, Mount Fuji, and urban Tokyo have become clean, quiet, and comfortable once again. The phrase 'No Chinese tourists' has unexpectedly emerged as the best promotional slogan for Japan to advocate high-quality tourism, drawing more visitors from around the world for deeper experiences.
This phenomenon of 'better without mainland tourists' has already been personally experienced and validated in Taiwan.
Ultimately, the strategy of 'weaponizing the economy' backfires.
The Chinese Communist Party has a long-standing practice of leveraging its enormous market size as a diplomatic tool, punishing countries with differing political views through measures such as import restrictions, non-tariff barriers, or travel bans, a strategy known as 'Economic Coercion.' However, extensive reporting from international media and analyses from think tanks suggest that this method of 'economic weaponization' often backfires, ultimately resulting in significant losses for China itself.
1. The Ban on Australian Coal and Agricultural Products Leads to Power Shortages and High Inflation in China
In 2020, after the Australian government called for an independent international investigation into the origins of the COVID-19 virus, the Chinese Communist Party responded by imposing punitive tariffs and customs barriers on Australian barley, wine, lobster, and coal.
Reports from The Wall Street Journal and the BBC indicate that between late 2020 and 2021, the Chinese Communist Party abruptly banned the import of high-quality Australian thermal coal. This decision directly caused a shortage of coal for domestic power generation, leading to soaring coal prices and severe 'power rationing' in provinces such as Zhejiang, Guangdong, and Hunan. Factories were forced to shut down, significantly affecting the daily lives of ordinary citizens.
In light of the Chinese Communist Party's breach of trust and its oppressive tactics of violating commercial contracts, the Australian government sought alternative markets, successfully redirecting coal and barley to India, Japan, and Europe, which led to a swift economic recovery. Conversely, China was compelled to source expensive coal from Colombia and Russia, failing to achieve its diplomatic goals while simultaneously damaging its domestic production capacity.
2. The Trade Blockade Against Lithuania: A Catalyst for the EU's Anti-Economic Coercion Legislation
In 2021, Lithuania permitted Taiwan to set up a representative office under the name 'Taiwan', which led the Chinese Communist Party (CCP) to downgrade diplomatic relations and impose a ban on Lithuanian products. The CCP even pressured German automotive parts manufacturers to refrain from using Lithuanian suppliers.
This action by the CCP provoked anger within the European Union (EU), prompting the EU to implement institutional countermeasures.
As reported by Voice of America and The Guardian, the CCP extended its economic pressure to encompass the entire EU supply chain, raising significant concerns among European nations. The EU not only filed a lawsuit against China at the World Trade Organization (WTO) but also accelerated the passage of the Anti-Coercion Instrument (ACI), which empowers the EU to legally impose tariffs and trade countermeasures against countries that engage in economic coercion in the future.
The CCP's aggressive tactics against Lithuania not only failed to compel Lithuania to submit but also led Central and Eastern European countries to better understand the threat posed by Beijing, hastening the disintegration of the '17+1 Cooperation Mechanism'. This mechanism refers to the cooperation between China and Central and Eastern European countries, established as a cross-regional platform to promote economic and investment collaboration.
3. Restricting Rare Earth Exports: Accelerating the West's Development of a 'Non-China' Supply Chain
Following the Diaoyu Islands collision incident between China and Japan in 2010, the CCP briefly imposed a ban on rare earth exports to Japan, which are critical for keyboards, electric vehicles, and the defense industry, in an attempt to pressure Japan into releasing detained individuals.
According to special reports from Reuters and the Financial Times, this warning has sent shockwaves through global industrial powers, highlighting the risks associated with over-reliance on China's rare earths. In response, Japan, the United States, and Europe have made concerted efforts to develop rare earth mines in Australia (such as Lynas Rare Earths) and to revive domestic mining operations, while also investing in alternative technologies.
China's share of rare earths in the global supply chain has significantly decreased from over 95% in the past, effectively dismantling its own market monopoly advantages.
4. Travel Ban Suppresses South Korea's THAAD: A Self-Destructive Blow to Soft Power and Diplomatic Credibility
In 2017, South Korea's deployment of the THAAD missile defense system triggered the Chinese Communist Party (CCP) to implement the 'Limit Korea Order.' This included removing Korean dramas from streaming platforms, banning group tours to South Korea, and compelling the Lotte Group to exit the Chinese market.
Reports from the Chosun Ilbo and various think tanks indicate that this economic retaliation led to a dramatic decline in favorable perceptions of China among the South Korean public, particularly among the younger generation, with their positive views even dipping below their negative views of Japan at one point.
Rather than deterring the THAAD deployment, this economic coercion directly facilitated a shift in South Korea's foreign policy towards closer ties with the United States and Japan. It also prompted South Korean companies to significantly relocate their supply chains away from China to Southeast Asia and India, as exemplified by Samsung's closure of its mobile phone factory in China. The CCP's diplomatic strategy can thus be deemed a complete failure.
The Three Major Pitfalls of Using Economic Measures in Diplomatic Issues
In relation to the CCP's strategy of 'using economic measures to address diplomatic issues,' several international think tanks, including the Australian Strategic Policy Institute and the Center for Strategic and International Studies in the United States, have highlighted in their reports that this approach has 'three major pitfalls':
1. The Chinese Communist Party (CCP) has undermined its own image and credibility as a 'reliable trading partner,' compelling global businesses to hasten the adoption of the 'China+1' strategy, which involves relocating supply chains away from China. The 'China+1' strategy is a diversification approach to supply chains and investments, where companies maintain their existing production or procurement bases in China while adding at least one overseas country—such as Vietnam, India, Thailand, or Mexico—as a backup or supplementary site.
2. Countries that have been subjected to economic sanctions by the CCP often manage to find new markets quickly. For example, after the Australian government faced sanctions from the CCP, it swiftly redirected its coal and barley exports to India, Japan, and the European Union, which ultimately strengthened its resilience against China. The CCP's underhanded tactics have inadvertently pushed foreign markets to upgrade themselves and diversify their risks.
3. The CCP has escalated what was initially a straightforward commercial dispute into a national security crisis, leading to a strong consensus among the G7 and democratic nations on 'de-risking' and countering coercion, thereby moving closer to the US-Japan alliance and distancing themselves from the CCP.
Based on the analysis above, netizens have a saying that rings true: Do you really think Xi Jinping's title of 'General Accelerator' is just a meaningless label?
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