The consequences of the diplomatic tensions between China and Japan unilaterally sparked by Japanese Prime Minister Sanae Takaichi’s erroneous and dangerous remarks on the Taiwan question on Nov 7 pose real challenges for Japan’s economic outlook.

The overtly militaristic stance she expressed, which is in defiance of the postwar constraints on Japan’s militarization, not only runs against the trend of the times and jeopardizes regional stability, but also threatens to exacerbate Japan’s economic difficulties.

By stating that Japan could intervene militarily in the Taiwan Strait, Takaichi indicated a significant departure from the Japanese government’s long-held policy toward the Chinese island.

Her provocative remarks have understandably drawn sharp rebukes from China and triggered a wave of economic consequences that have fueled concerns for Japan’s fragile economy, as China is Japan’s largest trading partner.

Amid the frictions caused by Takaichi’s remarks, a growing number of Chinese citizens have dropped plans to visit Japan and seafood imports have also been suspended, moves that could cost Japan billions of dollars in lost revenues. Before the diplomatic row, Chinese tourists constituted a significant portion........

© The Frontier Post (Editorial)