Markets
19/11/2025

Japanese Seafood Sector Drawn into High-Stakes Diplomatic Clash With China




Tensions between Japan and China have risen sharply as Japanese seafood exports become a bargaining chip in a broader diplomatic dispute. What began with comments from Japan’s Prime Minister signalling a willingness to respond militarily to a Chinese attack on Taiwan has escalated into economic retaliation, with seafood—once one of Japan’s most valuable export lines to China—caught in the cross-fire. Behind the headlines, the dispute exposes how geopolitical fault-lines now extend deep into supply chains, food safety, trade policy and reputational risk.
 
Escalation of Diplomatic Tension and Seafood as Leverage
 
In recent weeks, relations between Tokyo and Beijing have deteriorated markedly. Japan’s new leader publicly warned that a Chinese assault on Taiwan could force Japan’s intervention to safeguard its own security. China responded sharply, demanding a retraction of the remarks, advising its citizens not to travel to Japan and signalling consequential measures. Among the tools now used is a sweeping ban on seafood imports from Japan, which Beijing framed as a food-safety action but which observers say has clear political dimensions.
 
China’s foreign-ministry spokesperson declared that “even if Japanese seafood were to be exported to China, it would find no market” in the current climate. The move is significant because China had previously accounted for a very large share of Japan’s seafood export market—particularly high-value products like scallops and sea cucumbers. The sudden suspension of trade sends a strong signal: diplomatic missteps can translate into direct impacts on export industries, and in this case seafood is being used as a pressure lever.
 
Japan has responded cautiously, noting that no formal notification of a blanket ban had been received, while still lobbying China to reverse the move. But the economic damage is already visible: Japanese fisheries associations and exporters report sudden disruption as China closes its doors to key Japanese produce. The dispute thus reveals how embedded seafood is in the wider Japan-China economic relationship, and how vulnerable it becomes when adversarial diplomacy takes hold.
 
Why Japanese Seafood Holds Strategic and Economic Value
 
The significance of Japanese seafood exports to China lies in both scale and product mix. Before the ban, China and Hong Kong together comprised around 25–30 % of Japan’s seafood export market value, making the Chinese market critical for Japanese fishery firms. For example, one analysis found that Japanese scallop producers had shipped thousands of tonnes to China for processing and re-export, dependent on Chinese processing capacity and market access.
 
Japan’s seafood products also command premium prices and global recognition—especially species such as scallops from Hokkaido, sea cucumbers and sashimi-grade products. When China imposed its ban following Japan’s release of treated wastewater from the Fukushima Daiichi Nuclear Power Plant in 2023, the effect was immediate and steep: Japanese seafood exports to China reportedly fell by nearly 30 % in 2024, and exports to China alone dropped sharply in value. At the same time, Japan managed to record a new overall high in food product exports that year by redirecting flows to markets such as the United States, Vietnam and Taiwan.
 
But redirecting exports is easier in theory than practice. Many specialist seafood producers had built supply-chains focused on China with tailored processing partners, logistics and market branding. Shifting to other destinations requires time, investment and new relationships—and losses can accumulate in the interim. Thus, when China closes access abruptly, the shock reverberates through local fishers, processors and regional economies in Japan with close ties to the export chain.
 
How Food Safety Narratives and Reputational Risk Feed the Dispute
 
At the heart of China’s trade restriction is the narrative of food safety. China cited concerns over the ocean discharge of ALPS-treated water from the Fukushima site, arguing that Japanese seafood may carry radioactive contamination. Japan, supported by independent monitoring from the International Atomic Energy Agency (IAEA), maintains the discharges are safe and meet international standards. But once food-safety fears become entangled with diplomacy, they attain two-fold significance: first as a genuine technical and regulatory challenge; second as a strategic instrument of state-to-state leverage.
 
In June 2025, China indicated it would permit conditional resumption of Japanese seafood from selected prefectures, subject to strict certificates including health certificates, radioactive-substance testing and origin documentation. Only firms from re-registered facilities may export. This regulatory structure acts as a control mechanism to manage re-entry into the market—thereby retaining leverage over Tokyo. From the Japanese side, it underscores the additional reputational burden on fishery exporters in a context of elevated scrutiny.
 
Beyond the technical dimensions, the reputational fallout for Japanese seafood as a “safe and high-quality” brand is at risk. When a major market suddenly imposes a ban citing contamination, even if later lifted, the stigma can linger globally. Japanese firms thus face dual pressures: defend the safety narrative and manage commercial realignment as China restricts access.
 
Economic and Commercial Impacts on Japan’s Seafood Sector
 
The implications for Japan’s seafood industry are substantial. The ban forced scallop producers in Hokkaido—one of Japan’s largest scallop-producing regions—to divert tens of thousands of tonnes to other processing hubs, often in Southeast Asia, resulting in higher logistics costs and lower margin. Sea cucumber exports, long targeted at the Chinese luxury market, dropped significantly. Export statistics show that seafood exports to China dropped by around JPY 68.9 billion (≈ US$460 million) in 2024 compared with 2023, amounting to a nearly 30 % decline.
 
While Japan’s overall food‐product exports rose in 2024, the seafood category’s weakness due to China’s restrictions remains visible: even though the total stood at a record ¥1.507 trillion (≈ US$9.7 billion) for agriculture, forestry and fishery products, the seafood component fell by 6.3 %. And for many small and medium fishery enterprises heavily reliant on the China market, the shock was harsh: minimal access to Chinese processing, empty orders and urgent need to re-orient to other markets.
 
The conditional reopening of Chinese imports in late 2025—or early 2026—does offer relief but with caveats. So far, only three Japanese exporters are approved to ship to China under the new regime, and exports still exclude ten prefectures including Fukushima, Tokyo and Chiba. Thus full restoration of market access remains distant. For Japanese exporters, rebuilding well-functioning trade flows to China means navigating complex registration, certification and trust-building again—while competitor countries such as Canada, France and the Republic of Korea have already expanded into the Chinese niche.
 
Broader Strategic Implications for Japan-China Relations and Trade
 
The seafood dispute is more than a bilateral trade disagreement—it reflects a shifting strategic interface between Japan and China where economic interdependence meets geopolitical risk. Japan, aware of its vulnerability in exports to China, is simultaneously seeking to diversify its market base and frame its seafood exports as part of a national growth strategy. At the same time China uses food-safety controls, tourism advisories and import curbs as instruments of foreign-policy pressure.
 
For Tokyo, there is a dual challenge: protecting the economic interests of an entire export sector and resisting the signal that commercial access can be conditioned on political concessions. For Beijing, the episode affirms the message that diplomatic misalignment may incur economic costs. The message is particularly potent in the context of escalating strategic competition in East Asia.
 
In the global trade environment this case raises cautionary notes: as supply chains become more strategically sensitive and consumer goods—food items included—become potential tools of pressure, firms and governments may need to build resilience, diversify markets and understand reputational risk in new dimensions.
 
In effect, Japanese seafood exporters are now forced to function not just as producers of high-quality goods, but as actors in a geopolitical game where access to once-taken-for-granted markets depends on broader diplomatic context. The irony is that while seafood is among Japan’s most benign and culturally celebrated exports, in this instance it has become a front-line in the deepening rivalry between Tokyo and Beijing.
 
(Source:www.aljazeera.com)

Christopher J. Mitchell
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