FILE PHOTO: A vendor arranges seafood for sale at Tsukiji Outer Market in Tokyo, Japan, August 12, 2024. REUTERS/Willy Kurniawan/File Photo

By Kaori Kaneko and Eduardo Baptista

TOKYO/BEIJING (Reuters) -China has informed Japan that it will ban all imports of Japanese seafood, media outlets reported on Wednesday, in what appeared to be the latest salvo in an escalating diplomatic dispute between Asia's top two economies.

Tensions between the two countries ignited after new Japanese Prime Minister Sanae Takaichi said this month that a Chinese attack on Taiwan threatening Japan's survival could trigger a military response.

China has demanded she retract the remarks and urged its citizens not to travel to Japan, resulting in mass cancellations that could deal a sizable blow to the world's fourth-largest economy.

Asked about the reports at a press conference, China's foreign ministry spokesperson Mao Ning said: "Under the current circumstances, even if Japanese seafood were to be exported to China, it would find no market."

She reiterated that if Takaichi did not retract her remarks, China would have to take "stern and resolute" countermeasures.

Japan's Chief Cabinet Secretary Minoru Kihara told reporters Tokyo had not received any notification from the Chinese government about a ban on seafood.

Beijing just months ago partially eased restrictions on Japanese seafood that had been imposed due to Tokyo's decision two years ago to release treated wastewater from its Fukushima power plant, the site of a 2011 nuclear meltdown that followed a massive earthquake and tsunami.

China has told Japan that the re-imposition of the ban was due to the need for further monitoring of the water release, public broadcaster NHK and Kyodo news agency reported, citing sources.

Facing a wave of vitriolic responses by a Chinese diplomat in Japan and Chinese state media aimed at Takaichi, Japan warned its citizens in China on Monday to step up safety precautions and avoid crowded places.

Tokyo has said Takaichi's remarks in parliament are in line with the government's position, suggesting no breakthrough is imminent.

JAPAN COUNTS COST OF DISPUTE

China had said in June that it would resume importing Japanese seafood products from all but 10 of Japan's 47 prefectures.

The re-imposition will be a painful blow for many companies eager to re-enter a market that previously accounted for more than a fifth of all Japan's seafood exports.

Nearly 700 Japanese exporters had applied to re-register for shipments to China, Japanese Agriculture Minister Norikazu Suzuki told reporters on Tuesday. However, only three had been approved to date.

Before the 2023 ban, China was Japan's top scallop buyer and a major importer of sea cucumbers.

More immediately, China's travel boycott could have far-reaching consequences for Japan's shaky economy.

Tourism accounts for around 7% of Japan's overall gross domestic product, according to the World Travel & Tourism Council, and has been a major driver of growth in recent years. Visitors from mainland China and Hong Kong account for around a fifth of all arrivals, official figures show.

More than 10 Chinese airlines have offered refunds on Japan-bound routes until December 31, with one airline analyst estimating that around 500,000 tickets have already been cancelled.

A person at a state-owned Chinese bank said staff were informally told by managers on Tuesday that requests to travel to Japan would not be approved for the time being. The person declined to be named due to the sensitivity of the matter.

JAPANESE COMEDIANS, BANDS CANCEL SHOWS

An annual meeting of academics from both countries due to start in Beijing on Saturday has been postponed, China's foreign ministry said, citing the political fallout.

Another event promoting Japan–China friendship scheduled for November 21 in the western Japanese city of Hiroshima has also been cancelled.

Japanese artists have also been caught up in the furore.

Performances by Japanese comedians at an upcoming festival in Shanghai have been cancelled due to "unavoidable circumstances", entertainment firm Yoshimoto Kogyo said on Tuesday.

Screenings of upcoming Japanese films in China have also been suspended, while a Japanese boy band cancelled a fan event in Guangzhou earlier this week citing "force majeure".

Other Japanese celebrities popular in China have tried to head off potential backlash with messages showing their support for China.

"China is like my second homeland to me and all my friends in China are my cherished family — I will always support One China," Japanese singer MARiA wrote on Weibo on Tuesday.

(Reporting by Chang-Ran Kim, Kaori Kaneko, Tim Kelly and Katya Golubkova in Tokyo and Eduardo Baptista in Beijing; Writing by John Geddie; Editing by Lincoln Feast and Edwina Gibbs)