Overall Highlights

• Tensions between China and Japan are escalating, impacting business relations and diplomatic communications.
• Japanese business leaders are reconsidering their engagements with China due to rising tensions, while China criticizes Japan’s stance on Taiwan.
• China’s military exercises around Taiwan and Japan’s response highlight the regional security concerns and geopolitical rivalry.
• Economic challenges in Japan, including a weak yen and tourism issues, are compounded by its strained relations with China.

China Perspective (China Sources)

• Japanese business leaders have canceled their annual trip to China amid rising tensions, indicating a significant shift in economic relations.
• China’s Foreign Minister Wang Yi has criticized Japan during a call with South Korea, reflecting ongoing diplomatic strains.
• China is calling for Japan to retract comments made by its Prime Minister regarding Taiwan, emphasizing the sensitivity of cross-strait relations.

Japan Perspective (Japan Sources)

• Japan is facing economic challenges, with concerns that it may lose its GDP race to India due to a weak yen and tourism woes.
• Japanese outlets report on China’s military drills around Taiwan, framing them as a threat to regional stability.
• Japan’s bullet train operator is looking to expand its maglev technology overseas, indicating a focus on innovation despite geopolitical tensions.

Sources

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

1. [en-US] Japanese business leaders shelve annual China trip as tensions mount - South China Morning Post (1/1/2026)
2. [en-US] China’s Wang Yi takes aim at Japan in call with South Korean foreign minister - South China Morning Post (1/1/2026)
3. [en-US] Train collides with car at rail crossing in Japan’s Saitama Prefecture - 新华网 (1/1/2026)
4. [en-US] Japan may lose GDP race to India amid weak yen, tourism woes, China row - South China Morning Post (1/1/2026)
5. [en-US] South Korea’s commitment to the one-China principle remains unchanged: South Korean FM - Global Times (1/1/2026)
6. [en-US] 25 years on, unsolved Setagaya murders continue to haunt Japan - South China Morning Post (1/1/2026)
7. [en-US] 25 years on, unsolved Setagaya murders continue to haunt Japan - South China Morning Post (1/1/2026)
8. [en-US] ‘Rotten legs’: the Chinese victims of Unit 731 and Japan’s WWII biological warfare - South China Morning Post (12/31/2025)
9. [en-US] 5.7-magnitude earthquake strikes off Japan’s Iwate Prefecture - 新华网 (12/31/2025)
10. [en-US] China repeats call for retraction of Japanese PM’s Taiwan comments - China Daily (12/31/2025)
11. [en-US] Chinese AI chipmaker Biren soars on trading debut - Nikkei Asia (1/2/2026)
12. [en-US] Asia in 2026: Bangladesh vote, Vietnam leadership change, FIFA World Cup - Nikkei Asia (1/1/2026)
13. [en-US] China’s BYD set to surpass Tesla and become top global EV seller in 2025 - Nikkei Asia (1/1/2026)
14. [en-US] Japan’s Monchhichi doll sales soar alongside Labubu craze - Nikkei Asia (1/1/2026)
15. [en-US] Taiwan’s Lai vows to defend sovereignty after China’s military drill - The Japan Times (1/1/2026)
16. [en-US] China seeks South Korean support on Japan and Taiwan before Lee’s visit - The Japan Times (1/1/2026)
17. [en-US] Will tailwinds become headwinds for Takaichi in 2026? - The Japan Times (1/1/2026)
18. [en-US] China signals military resolve with expanded exercises around Taiwan - Nikkei Asia (1/1/2026)
19. [en-US] Pentagon says Lockheed Martin gets $328.5m Taiwan military contract - Nikkei Asia (12/31/2025)
20. [en-US] Japan bullet train operator JR Central hopes to take maglev tech overseas - Nikkei Asia (12/31/2025)