Japan's economy contracts
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China, Japan and Economic Fallout
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Beijing has urged Chinese citizens to refrain from travelling to Japan following comments about Taiwan by new Japanese PM Sanae Takaichi.
Expectations for more stimulus have been growing since Sanae Takaichi—a known fiscal expansionist—won the leadership election of Japan’s ruling party last month.
Japan has been feeling the sting of China’s economic retaliation as their diplomatic spat over Taiwan worsens, with travel agencies canceling group tours and fears mounting over an outright ban on Japanese seafood and movies.
Tensions spiraled on Nov. 8, when Takaichi said that a Chinese attempt to seize Taiwan by force would constitute a "survival-threatening situation" for Japan.
Beijing is flexing its military and economic might to show its displeasure with the Japanese leader’s comments about defending Taiwan. But its aggressive approach risks backfiring.
The first formal meeting between BOJ Governor Kazuo Ueda and new Prime Minister Sanae Takaichi could shape Japan's interest rate strategy. With market focus on potential rate hikes and currency volatility,