Key facts
- Nikkei reported Japanese companies face risks whether they leave China or stay, a year into the rift.
- The rift followed Prime Minister Sanae Takaichi's remarks on Taiwan, the report said.
- The report said the business world sees no openings this time for economic appeals to ease tensions.
Business between Japan and China remained chilled a year into the diplomatic rift caused by Japanese Prime Minister Sanae Takaichi's remarks on Taiwan, Nikkei reported on November 6, 2026, leaving Japanese companies facing risks whether they leave or stay. The report said the business world sees no openings this time for economic appeals to ease tensions.
A Japan Times commentary dated November 3, 2026 said Xi Jinping froze high-level communication with Takaichi following her remarks last November, in which she stated that a Chinese military assault on Taiwan would directly threaten Japan's security. The commentary said a high-profile encounter with Xi during the Asia-Pacific Economic Cooperation gathering in Shenzhen on November 18-19 may offer the appearance of improved relations.