Xi Jinping and Japanese Prime Minister Sanae Takaichi held their first in-person meeting on the sidelines of the October 2025 APEC summit in South Korea, where they reaffirmed a mutually beneficial strategic relationship and committed to managing differences through dialogue. Bilateral ties deteriorated sharply after Takaichi’s November 2025 parliamentary remarks linking a Taiwan contingency to Japan’s security legislation, prompting Chinese economic and diplomatic pressure including export restrictions and tourism curbs. As of early 2026, Takaichi has publicly signaled openness to renewed direct talks while Japan navigates U.S. alliance coordination, including recent briefings following U.S.-China summits. No further bilateral leader meetings have occurred amid these tensions, leaving trader assessments focused on whether scheduled regional forums or back-channel diplomacy can produce another encounter before the market’s cutoff date.