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 has reported its economy contracted at a 1.8% annual pace in July-September as President Donald Trump’s tariffs hurt exports.

The Japanese economy shrank 1.8 percent from the same quarter last year as U.S. tariffs dampened automobile exports and prompted a bleak outlook for growth.

Shipments from automakers in particular plummeted, following a period of hiking exports before tariffs came into effect.

Beijing is using its economic power and military muscle to convey its anger with Japan’s new prime minister, Sanae Takaichi — and to send a message to the U.S.

Japan’s diplomatic rift with China has expanded into a sweeping economic and cultural freeze with Beijing halting Japanese seafood imports, suspending film releases, warning citizens against travel to Japan & signalling broader retaliation unless Tokyo retracts PM Sanae Takaichi’s recent remarks on Taiwan.

Early signs on Japan's annual wage negotiations for next year point to another round of solid pay hikes despite profit pressure from U.S. tariffs, bolstering the case for the Bank of Japan to raise interest rates further.

Shiina Ito has had fewer Chinese customers at her Tokyo jewellery shop since Beijing issued a travel warning in the wake of a diplomatic spat, but she said she was not concerned. But travel agency manager Wu said that the spat would not stop holidaymakers dreaming of Tokyo.