key takeaways
- Neither Tokyo nor Beijing is backing down in their dispute over Prime Minister Takaichi Sanae’s comments on a Taiwan contingency, suggesting the likelihood of prolonged tensions.
- After discouraging travel to Japan, China has introduced additional countermeasures, with further economic coercion possible.
- The Takaichi government will find it difficult to yield to economic coercion and these measures could accelerate long-term structural changes in the bilateral relationship.
Japan Foresight 