China Targets Japan’s Economic Vulnerabilities Amid Rising Tensions Over Taiwan

Tokyo/Beijing: Tensions between Japan and China have escalated to some of their highest levels in recent years, following remarks by Japanese Prime Minister Sanae Takaichi last November. Takaichi warned that any Chinese attack on Taiwan would pose a direct threat to Japan’s security and could prompt a Japanese response. Beijing reacted angrily to the statement, threatening consequences for any perceived interference in Taiwan, which it considers a core sovereign matter.

Takaichi recently returned to power with a historically strong mandate in Japan’s elections, signaling analysts to warn of potential further strain in Sino-Japanese relations.

China has long asserted its claim over Taiwan and has not ruled out the use of force to assert control. Any attack on Taiwan carries the risk of direct military confrontation with the United States, which has pledged to defend Taipei. Regional allies of Washington, including Japan and the Philippines, could also be drawn into any conflict.

In response to Takaichi’s statements, China has applied pressure on Japan’s economy—widely seen as the country’s weakest strategic point. Beijing has imposed restrictions on rare earth elements and other critical minerals, issued travel warnings to Chinese citizens against visiting Japan, and canceled flights on 49 routes, significantly reducing tourist arrivals. Japanese cultural exports have also been affected, with music events canceled and film releases postponed in China.

Analyst Robert Ward of the International Institute for Strategic Studies notes that China is applying broad but measured pressure, avoiding extreme measures to maintain its image as a responsible power in the post-World War II international order. Ward suggests Beijing is cautious, balancing pressure on Japan with its desire to be seen as a global “guardian of order,” especially amid uncertainties in US leadership.

Despite Chinese objections, Takaichi has refused to retract her remarks or apologize. Analysts predict that she is likely to leverage her electoral mandate to advance defense and economic policies, standing firm against Beijing’s pressure.