The once familiar sight of Chinese tour groups in Tokyo’s shopping districts risks becoming a thing of the past. That shift — the result of renewed geopolitical tensions — will send ripples through Japan’s economy, with consequences for industries dependent on their degree of exposure to Chinese consumers. Few sectors are more exposed than beauty.

The sell-off in Japanese consumer stocks began last week after Beijing issued a travel advisory against visiting Japan, warning Chinese nationals of heightened risks. This guidance followed Prime Minister Sanae Takaichi’s suggestion that Japan could regard any military action around Taiwan as a “survival-threatening situation”.

Among the hardest hit is Shiseido, a Japanese beauty group with a market capitalisation equivalent to $5.6bn. Its shares have fallen by almost a fifth, significantly underperforming the broader market. China and travel retail account for more than a third of the company’s global sales, and revenue from that segment was already shrinking this year.