India benefits from China’s ban on Japanese seafood:Dispute between two countries leads to rise in Indian companies’ shares

India is directly benefiting from the escalating tensions between China and Japan over Taiwan. On Wednesday, China completely banned all seafood (such as fish, shrimp) coming from Japan. Following this, shares of Indian seafood exporters saw a sharp surge. China’s decision has created a risk of seafood shortage in its market. To meet this, it is rapidly turning towards countries like India. As a result, shares of Indian seafood companies have risen. Shares of Telangana’s Avanti Feeds rose by about 10%. This is the biggest gain in the company’s shares in the last two months. Meanwhile, shares of another seafood company, Coastal Corporation, also rose by 5%. The company had said in April that it would increase exports to China. Why did tension arise between China and Japan? The reason for the dispute between China and Japan is a statement by Japanese PM Sanae Takaichi. Actually, Takaichi said on November 7 that if China attacks Taiwan, Japan will send its army to help. China called this statement extremely irresponsible and provocative. The very next day, the dispute escalated when China’s Consul General in Japan, Xue Jian, wrote on X that he would cut off the neck of anyone who interfered in this matter. After this, both countries summoned each other’s ambassadors. China has warned its citizens not to travel to Japan, cautioning that they may face danger if they go there. New Market Brings Hope of Relief for India The opportunity of China’s market for India has come at a time when the US has imposed up to 50% tax on Indian seafood. This led to a 9% decline in Indian seafood exports to the US in October. According to reports, India’s exports to China, Vietnam, and Thailand have increased. India exported seafood worth 7.4 billion dollars, or approximately 61 thousand crore rupees, in the last financial year. Most exports were of frozen shrimp and frozen fish. The US is still India’s largest seafood market. Large American retailers like Walmart and Kroger buy Indian products. Japan hit as Chinese market closes The closure of the Chinese market for Japan is like a big blow. Japan exports 20-25% of its total seafood exports to China. China is the largest market for Japanese exporters. However, seafood accounts for 1% of its total exports. Recently, after a two-year hiatus, Japan had resumed seafood exports to China. China had banned seafood coming from Japan in 2023. According to NHK reports, this ban was imposed due to the water released into the sea from the Fukushima Nuclear Plant. The new ban is likely to cause heavy losses to Japanese companies. Also Read | Trump, Japan’s new PM Takaichi sign rare earth minerals deal Chinese Media Says – Japan is Interfering Unnecessarily China’s state media says that Japan is unnecessarily interfering in the Taiwan issue and by doing so, it is putting its own country at risk. A news editorial also stated that if Japan’s military intervenes in this matter, the entire region will suffer losses. China considers Taiwan its own territory, while Japan and America do not recognize Taiwan as an independent country, but America helps in its security and opposes any forced occupation of it. Taiwan is only 110 kilometers away from Japan. The maritime area around Taiwan is very important for Japan because it is a crucial sea trade route for it. Additionally, Japan also hosts the world’s largest foreign base of the US military. Also Read | Japan’s new PM works 18-hours a day China-Japan issued a security advisory The Japanese government has asked its citizens living in China to avoid crowded places. Japan’s Cabinet Secretary Minoru Kihara stated that the atmosphere regarding Japan in Chinese media has deteriorated after recent diplomatic disputes, which is why this new security alert has been issued. Japan’s security alert states that one should be cautious when talking to strangers, avoid traveling alone, be vigilant when going out with children, and immediately move away upon seeing any suspicious person or group. Meanwhile, China also issued a security advisory on Sunday for Chinese students going to Japan for studies. China says that the security situation in Japan is not good these days and the threat to Chinese citizens living there has increased. According to China, crime has recently increased in Japan, and the environment is no longer as safe for Chinese students as it once was.