In Brief: Increasing Tensions Between China and Japan Create Risks for the Region

Tensions between China and Japan are escalating, sparked by a statement from Japan's Prime Minister suggesting a military response if China were to attack Taiwan. In response to Beijing's interpretation, Prime Minister Sanae Takaichi has pledged to increase Japan's defense spending. Experts assess that this raises the risk of military conflict, especially in the maritime domain near the Senkaku Islands. China may also retaliate with economic measures, including trade sanctions and export controls on materials like rare earth elements.