Overall Highlights

• Tensions between China and Japan are escalating, particularly in diplomatic and economic contexts.
• Japan is concerned about its economic competitiveness, especially in light of China’s consumer market resilience.
• China is prioritizing relations with South Korea over Japan, indicating a diplomatic rift.
• Both nations are navigating complex relationships with the US, particularly regarding tariffs and trade discussions.

China Perspective (China Sources)

• China’s diplomatic strategy appears to favor South Korea over Japan, with recent visits and discussions highlighting this shift.
• China’s military stance around Taiwan is being framed as a response to external pressures, particularly from the US and Japan.
• Scholars in China warn against a potential deflation spiral similar to Japan’s, indicating economic concerns.
• Chinese officials criticize Japan’s role in regional tensions, particularly in relation to US-China dynamics.

Japan Perspective (Japan Sources)

• Japanese officials are actively engaging with the US, with discussions about a potential spring meeting between Trump and Takaichi.
• Japan’s economy is under pressure from the weak yen and competition from India, prompting concerns about its global economic standing.
• Japanese businesses are hesitant to engage with China amid rising tensions, leading to canceled trips and investments.
• Japan is preparing to export frozen sushi to the US, indicating a focus on expanding its market presence despite regional tensions.

Sources

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

1. [en-US] Trump to meet US’ China envoy after call with Japanese PM Takaichi - South China Morning Post (1/2/2026)
2. [en-US] China’s diplomatic divide: red carpet for Seoul, cold shoulder for Tokyo firms - South China Morning Post (1/2/2026)
3. [en-US] MND spokesperson slams external forces’ hype over military drills around Taiwan island; expert says State Department’s cliché response fails to address root causes of tensions - Global Times (1/2/2026)
4. [en-US] China must take action to avoid Japan-style deflation spiral, scholars warn - South China Morning Post (1/2/2026)
5. [en-US] Japanese business leaders shelve annual China trip as tensions mount - South China Morning Post (1/1/2026)
6. [en-US] China’s Wang Yi takes aim at Japan in call with South Korean foreign minister - South China Morning Post (1/1/2026)
7. [en-US] Train collides with car at rail crossing in Japan’s Saitama Prefecture - 新华网 (1/1/2026)
8. [en-US] Japan may lose GDP race to India amid weak yen, tourism woes, China row - South China Morning Post (1/1/2026)
9. [en-US] South Korea’s commitment to the one-China principle remains unchanged: South Korean FM - Global Times (1/1/2026)
10. [en-US] 25 years on, unsolved Setagaya murders continue to haunt Japan - South China Morning Post (1/1/2026)
11. [en-US] New Year’s Tokyo tuna auction seen as bellwether of Japan’s stock market - Nikkei Asia (1/2/2026)
12. [en-US] China’s consumer appetite still high despite tough economy: Aeon China head - Nikkei Asia (1/2/2026)
13. [en-US] Japan auto parts suppliers struggle to pass on Trump tariff costs: Nikkei survey - Nikkei Asia (1/2/2026)
14. [en-US] South Korea firms enter Japan at record clip amid US-China tensions - Nikkei Asia (1/2/2026)
15. [en-US] Japan’s Takaichi, Trump agree to work toward spring meeting in U.S. - Japan Wire by KYODO NEWS (1/2/2026)
16. [en-US] Will the US Supreme Court strike down Trump tariffs? 5 things to know - Nikkei Asia (1/2/2026)
17. [en-US] Daiichi Sankyo to spend $1.9bn on production lines in China, US, elsewhere - Nikkei Asia (1/2/2026)
18. [en-US] Trump, Takaichi discuss PM’s possible spring visit to US in phone call - Nikkei Asia (1/2/2026)
19. [en-US] In call, Takaichi and Trump agree to work toward spring visit to U.S. - The Japan Times (1/2/2026)
20. [en-US] Japan prepares to export frozen sushi to the US - Nikkei Asia (1/2/2026)