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Baner Club > Blog > Economics > Tensions Rise as Japan Warns Against Economic Dependence on China
EconomicsPolitics

Tensions Rise as Japan Warns Against Economic Dependence on China

Japan-China tensions rise as disputes over Senkaku Islands, economic dependence, and security concerns intensify, leaving both nations on a knife’s edge.

Last updated: 2025/11/18 at 4:55 PM
Published November 18, 2025
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Japan is on alert as geopolitical tensions with China intensify. Taiwan lies just over 110 km from Japanese territory, and the waters around it form a crucial trade route that Japan relies on heavily. The country also hosts the largest U.S. military presence outside the United States, further raising the strategic stakes.

Over the weekend, Chinese coast guard vessels entered waters surrounding a chain of East China Sea islands controlled by Japan but claimed by China. Japan’s coast guard intervened, forcing the Chinese ships to retreat.

Although the U.S. does not officially recognize Japan’s sovereignty over the disputed islands—called Senkaku in Japan and Diaoyu in China—it has reaffirmed its commitment to defend Japan under the bilateral security treaty.
U.S. Ambassador to Japan George Glass underscored this on X, saying Washington’s obligation “includes the Senkaku Islands,” and that Chinese coast guard maneuvers would not alter this stance.

The upcoming G20 summit in South Africa could have provided room for dialogue, but China announced that its premier has no plans to meet Japan’s Prime Minister Takaichi. Japan’s Foreign Minister Kihara noted that meeting plans remain undecided but said Japan remains open to “various dialogues.”

Economic Concerns Add Pressure

Japan’s dependence on China extends far beyond politics. China is a key supplier of critical minerals needed for cars, electronics, and other major industries.
Economic security minister Kimi Onoda warned that relying too heavily on a country “that uses economic coercion” brings serious risks—not just for supply chains, but for tourism, after China advised its citizens to avoid traveling to Japan.

Trade Minister Ryosei Akazawa clarified that there have been no recent changes in China’s rare earth export controls. Meanwhile, Japan’s top business leaders met with Prime Minister Takaichi, urging diplomatic engagement, stressing that “political stability is essential for economic exchange.”

Despite Japan’s attempts to de-escalate, China remains unmoved. According to foreign policy expert Allen Carlson, the tensions have now left both countries “balancing on a knife’s edge.”

#JapanChinaTensions #SenkakuIslands #Geopolitics #EastAsiaSecurity #USJapanAlliance #RareEarths #GlobalTrade

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