**Sanae Takaichi, Japan’s prime minister, and Chinese President Xi Jinping last held a bilateral summit in October 2025 on the margins of APEC in South Korea, where they reaffirmed pursuit of a “strategic and mutually beneficial relationship” while Takaichi raised concerns over maritime activity near the Senkaku Islands, rare-earth export controls, and other issues.** Relations have since been strained by Takaichi’s prior remarks linking a Taiwan contingency to Japan’s security, prompting Beijing to apply economic and diplomatic pressure and insist on “normalization” of ties. Recent U.S.-China engagement, including Xi’s September 2026 state visit to Washington and planned follow-ups at the November APEC summit in Shenzhen and December G20, has heightened Tokyo’s focus on alliance coordination with Washington. Traders are weighing whether multilateral forums will produce a new Xi-Takaichi meeting amid ongoing bilateral frictions and competing regional priorities.