Overall Highlights

• Tensions between China and Japan remain high, particularly regarding military activities and territorial disputes.
• China’s economic growth is contrasted with Japan’s struggles, including a recent earthquake and economic challenges.
• Japanese companies see potential in China despite geopolitical tensions, indicating a complex economic relationship.
• Both nations are navigating the impact of U.S. foreign policy and regional security dynamics, particularly concerning Taiwan.

China Perspective (China Sources)

• The U.S. envoy’s Quad meeting in Beijing is viewed as a challenge to China’s sovereignty, especially amid ongoing PLA drills around Taiwan.
• Chinese officials emphasize the need for stable ties with the U.S. and criticize Japan’s military actions as threats to regional stability.
• China’s carmakers have reportedly surpassed Japan in global sales, reflecting a shift in economic power.
• Chinese Foreign Minister condemns Japan’s territorial claims, highlighting ongoing diplomatic tensions.

Japan Perspective (Japan Sources)

• Japanese companies are optimistic about opportunities in China, despite the geopolitical climate.
• Japan’s stock market is experiencing growth due to advancements in AI technology, contrasting with China’s economic slowdown.
• Chinese military drills near Taiwan are causing disruptions in air traffic, raising security concerns in Japan.
• Japan is facing its own challenges, including a recent earthquake and a bird flu outbreak, impacting public health and safety.

Sources

This summary is based on 20 articles from the following sources:

1. [en-US] US envoy hosts Quad meeting in Beijing as PLA’s drills around Taiwan continue - South China Morning Post (12/30/2025)
2. [en-US] Opinion | If Trump wants a deal with China, he must rein in US allies in Asia - South China Morning Post (12/30/2025)
3. [en-US] China and US need new ways to engage for stable ties: Wang Yi - South China Morning Post (12/30/2025)
4. [en-US] India overtakes Japan as world’s fourth largest economy, eyes top 3 in 2026 - South China Morning Post (12/30/2025)
5. [en-US] Chinese carmakers reported to top 2025 global sales for the first time, overtaking Japan; projection reflects ‘inevitable’ trend: expert - Global Times (12/30/2025)
6. [en-US] 5.6-magnitude earthquake strikes off Japan’s Amami-Oshima Island - 新华网 (12/30/2025)
7. [en-US] Chinese FM condemns Japanese incumbent leader’s open challenge to China’s territorial sovereignty, emphasizes three ‘musts’ - Global Times (12/30/2025)
8. [en-US] Japan confirms season’s 1st bird flu outbreak in greater Tokyo area - 新华网 (12/30/2025)
9. [en-US] Japan’s remilitarization ’threatens’ Southeast Asia - China Daily - Global Edition (12/30/2025)
10. [en-US] Japan’s own future is its true strategic challenge - China Daily (12/30/2025)
11. [en-US] Japanese companies still have chance in China: Itochu CEO - Nikkei Asia (12/30/2025)
12. [en-US] Japan stocks ride AI boom, rate hikes to record high in 2025 - Nikkei Asia (12/30/2025)
13. [en-US] Chinese bookings at Japan hotels surge for Lunar New Year despite tensions - Nikkei Asia (12/30/2025)
14. [en-US] SoftBank completes $23bn OpenAI investment, raising stake to 11% - Nikkei Asia (12/30/2025)
15. [en-US] Chinese drills near Taiwan continue for 2nd day, air traffic disrupted - Japan Wire by KYODO NEWS (12/30/2025)
16. [en-US] Nikkei Asia - Business, Politics, Economy and Tech News & Analysis - Nikkei Asia (12/30/2025)
17. [en-US] China fires rockets during military exercises simulating Taiwan blockade - The Japan Times (12/30/2025)
18. [en-US] China’s job market braces for AI storm amid trade war and slowing economy - Nikkei Asia (12/30/2025)
19. [en-US] Memo to liberal democracies: Beware ‘security autism’ - The Japan Times (12/30/2025)
20. [en-US] China’s LNG imports plunge under weak economy and US friction - Nikkei Asia (12/30/2025)