China’s diplomatic divide: red carpet for South Korea, cold shoulder for Japanese firms
While Tokyo’s corporate leaders stay home amid fallout from prime minister’s remarks on Taiwan, Beijing prepares to welcome South Korean president and top executives
As a diplomatic row sees Japanese company executives put visits to China on hold, Beijing is preparing to roll out the red carpet for South Korean business leaders accompanying President Lee Jae-myung on a state visit starting Sunday.
The contrasting receptions highlight how geopolitics is reshaping corporate ties in East Asia. Analysts expect continued friction between Beijing and Tokyo in 2026 to accelerate Japanese efforts to de-risk from the Chinese market. Conversely, Beijing’s warming relations with Seoul are seen as poised to spur more business engagement.
The Japan-China Economic Association (JCEA), Japan Business Federation (Keidanren) and the Japan Chamber of Commerce and Industry announced on Wednesday the postponement of a 200-person China visit that was expected to take place in the coming weeks, with no new trip scheduled, an association representative said.
“The current state of Japan-China relations presents challenges,” the JCEA’s deputy director of business promotion, Naoya Sawazu, told the Post on Friday.
“We have made strenuous efforts to realise the dispatch of this mission up until now,” he said. “However, after considering our interactions with Chinese counterparts and other prevailing circumstances, we have concluded that meaningful outcomes would not be achieved. Therefore, we have decided to postpone the dispatch of this delegation to China.
“It is deeply regrettable that this mission to China, for which preparations have been under way for six months, cannot be dispatched as scheduled.”
During their visit, the three organisations planned to assess Japan’s overall economic relationship with China, where more than 30,000 Japanese businesses operate, he said, adding that the trip may also have created a forum for exchanging views on improving the business environment.
There were also reports that the JCEA had cited difficulties in securing meetings with top leaders, including President Xi Jinping and Premier Li Qiang.