China-Japan bilateral ties remain strained by territorial disputes in the East China Sea, security concerns over Taiwan, and trade frictions including rare earth export controls and agricultural import restrictions, yet both sides have prioritized managed dialogue. Sanae Takaichi, who assumed the premiership in late 2025, held her first summit with Xi Jinping on the sidelines of the APEC meeting in Gyeongju, South Korea, that October, where they reaffirmed pursuit of a mutually beneficial strategic relationship and crisis management channels. As of mid-September 2026, no further in-person meeting has occurred amid Xi’s recent BRICS engagements and Takaichi’s cabinet reshuffle, which retained key foreign and defense ministers to maintain policy continuity. Traders are likely focused on prospects for a second encounter at the November 2026 APEC summit hosted by China in Shenzhen, alongside any bilateral signals from ongoing diplomatic contacts.