Chinese tourists at a Laox store in Tokyo. In 2014, spending by Chinese tourists was up 10.3% over the previous year, amounting to almost $2,000 per visitor.
Bloomberg/Tokyo
There’s no lack of ill will in China toward Japan. The chilly diplomatic relationship between Beijing and Tokyo is matched by occasional expressions of antagonism by the Chinese public. In September, the tenth Japan-China Public Opinion Poll (a joint effort by Chinese and Japanese organisations) showed that only 11.3% of Chinese had a favourable opinion of Japan, with 57.3% claiming that their impression had worsened over the last year. (Grievances about World War II and ongoing territorial disputes were among the top reasons cited.) And yet, despite this apparent disdain, Chinese tourists can’t seem to get enough of Japan. In 2014, 2.4mn Chinese visited Japan, an 83% increase on the previous year. And last week the Japanese government announced that it was increasing Chinese consular staff to handle a surge of Chinese visa applications.
Why haven’t China’s travel plans seemingly been affected by its political views? It comes down to shopping – specifically, to the Chinese public’s penchant for shopping overseas. Given China’s frequent product safety scandals and the rampant forgeries of designer goods that flood its markets, Chinese often schedule shopping sprees when they’re outside the country. In 2014 alone, Chinese spent $164bn abroad, making them the world’s biggest vacation spenders.
And Japan is increasingly China’s favoured shopping destination. In 2014, spending by Chinese tourists was up 10.3% over the previous year – amounting to almost $2,000 per visitor. During this past February’s Chinese New Year, Chinese tourists spent around $1bn in Japan. Business has been so good that Laox, a Chinese-owned duty free chain that caters to Chinese tourists in Japan, has seen its stock rise 1,400% since 2012.
There are a number of reasons for the flood of tourist spending in Japan, including the weakening yen; Tokyo’s visa requirements over the past year; and China’s persistently high taxes on luxury goods.
But the biggest factor is the outsized cachet that Japanese products – especially household appliances – enjoy in China. Take, for example, this year’s must-have souvenir for Chinese tourists visiting Japan: expensive, feature-laden high-tech toilet seats (complete with bidets, heat, and even speakers to play pre-recorded music). According to Chinese media reports, Chinese tourists have been buying up the devices in duty-free shops across Japan – often in bulk.
The fact that China makes high-tech toilet seats of its own – including some of those sold in Japan and re-exported to China – doesn’t deter these shoppers: the fact that they’re Japanese merchandise is precisely why they’re desirable for Chinese consumers. Indeed, one refrain in Chinese media coverage of the country’s foreign shopping sprees is a dutiful explanation – contrary to any actual evidence – that Japanese rice cookers simply prepare better rice than Chinese ones due to their superior materials.
Increased tourism and trade between China and Japan can’t hurt relations between the two countries. But so far, at least, there’s little evidence that increased fraternisation between Chinese tourists and Japanese duty free cashiers has contributed to a broader diplomatic or cultural thaw. Nor should anyone expect it to. Only 5% of Chinese citizens have passports, and they’re probably not representative of the country as a whole.