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Japan–China Standoff Deepens as Tokyo Holds Line on Taiwan and Ramps Up Defense Spending

Beijing is pressing Tokyo with sanctions after Prime Minister Sanae Takaichi framed a Taiwan attack as a survival threat.

Overview

  • Japan’s cabinet approved a record defense plan exceeding ¥9 trillion for fiscal 2026, lifting outlays about 9.4% to bolster strike-back and coastal defenses and accelerate progress toward the 2% of GDP target.
  • Beijing sanctioned former JSDF chief Iwasaki Shigeru with visa restrictions, property freezes and bans on transactions, citing violations of its One China principle.
  • Takaichi has refused to retract her remarks yet has kept a conciliatory tone by calling China an important neighbor and leaving the door open for dialogue.
  • Chinese authorities have applied sustained diplomatic, economic and military pressure in response to Tokyo’s position on a Taiwan contingency, according to recent reporting.
  • Analysts warn the dispute will likely persist, noting that any Taiwan conflict would quickly draw in the U.S.–Japan alliance given Okinawa, Yonaguni and the First Island Chain geography.