Overview
- Japan's Defense Ministry reported a suspected Chinese drone flying between Yonaguni and Taiwan on Monday, prompting the dispatch of aircraft.
- Defense Minister Shinjiro Koizumi said the medium‑range surface‑to‑air missile project on Yonaguni is well underway, a move Beijing calls dangerous and provocative.
- Chinese officials hardened their stance, with the Taiwan Affairs Office pledging to "crush" foreign interference and the Foreign Ministry accusing Japan of fueling confrontation.
- Beijing's countermeasures have weighed on Japan's economy, with travel warnings contributing to roughly 30% trip cancellations and Tokyo stocks sliding about 4% this month.
- Taiwan outlined roughly $40 billion in additional defense spending as U.S. President Donald Trump held separate phone calls with Xi Jinping and Prime Minister Sanae Takaichi.