Takaichi's Taiwan Stance Escalates China-Japan Tensions; Resolution Unlikely

• Tensions between China and Japan have reached a new low, unlikely to be resolved soon.
• The current crisis was triggered by Japanese PM Takaichi's remarks on potential military intervention if China uses force against Taiwan.
• China retaliated with economic pressures, travel warnings, and increased military presence near the Senkaku/Diaoyu islands.
• Japan views Taiwan's security as critical to its own and plans to increase its defense budget to 2% of GDP by 2026.
• Geopolitical changes and domestic political agendas in both nations are hindering de-escalation efforts.

Why It Matters: Escalating China-Japan tensions signal a new, harder era for regional stability.