How the China-Japan Rift Could Cost Both Countries

China and Japan have been locked in a diplomatic spat that could come at a heavy cost to both sides.

On Nov. 7, Japanese Prime Minister Sanae Takaichi suggested that an attack on Taiwan could constitute an existential threat to Japan and warrant a forceful response, prompting strong condemnation from Beijing. China has imposed a slew of economic measures that appear aimed at Japan, as its Commerce Ministry said Takaichi’s comments have “severely damaged” trade cooperation between the two countries. China claims sovereignty over the self-governed island of Taiwan and maintains the right to take control of it by force if necessary.

Tensions thus far show no sign of abating, with China sending a letter to the U.N. promising self-defense if Japan “dared to intervene militarily in the Tai