For years, China has threatened, cajoled and squeezed democratic Taiwan in an attempt to force it to fold without a costly war across the Taiwan Strait. Japan has mostly toed the US line of “strategic ambiguity”, rarely speaking out and officially saying that the dispute can be resolved through dialogue.

Much has been made of whether Japan's market fright at yet more fiscal stimulus and political leaning on the central bank apes Britain's bond blowout from 2022, but there are warnings for the U.S. Treasury too.

China is trying to impose economic costs on Japan for wading into the issue of Taiwan. But experts say the escalating dispute could ultimately hurt China too.

Japan's Prime Minister Sanae Takaichi's suggestion that the country consider revising its long-standing Three Non-Nuclear Principles has drawn widespread criticism, with experts saying that such a move neither aligns with Japan's security realities nor conforms to its historical responsibility to uphold peace.

It is believed that the Chinese president, Xi Jinping, has ordered his forces to be ready to seize the island by 2027 and is now warning Tokyo would 'bear all consequences' if it dares to get in the way.

Japanese concerts and films cancelled across China as political tensions escalate - Beijing and Tokyo are locked in a diplomatic row over Japanese prime minister’s remarks on Taiwan

Shipment of Patriot surface-to-air missile interceptors said to indicate Tokyo's expanded military capabilities amid tense China-Japan ties

The carriers had already received refund requests for hundreds of thousands of flight bookings to Japan amid a growing diplomatic row.

Beijing has demanded a retraction of the Japanese leader’s remarks and advised its citizens against travelling to Japan. This has led to widespread travel cancellations in the East Asian country, threatening a significant economic hit to the fourth-largest economy of the world.

With far-right Sanae Takaichi in power, Japan’s anti-immigration forces are likely to prevail and immigration reforms may end soon. In the ageing society, immigration is seen important for growth but nativist politics appears to have trumped.