Dear Reader,

Japan’s latest prime ministerial take on Taiwan – however “hypothetical” – turned out to be contentious but it was nonetheless shocking to see how quickly one Chinese state media affiliate went full-on fecal in response. Yuyuan Tantian is a social media account associated with state broadcaster CCTV and its posts are seen as a rough proxy for the government’s position. It promises an understanding of a “complex world through simple logic” – a logic that this week described Sanae Takaichi as spitting excrement. It also suggested that anyone holding her views urinate on the floor and take a long hard look at the reflection. It’s enough to make you want to book a ski trip to Hokkaido.

For a close look at China’s most advanced weapons, explore our multimedia project, The Red Arsenal. And dive into our series After the War on how World War II reshaped modern China.  

We welcome feedback. You can email me at globalimpact@scmp.com and if you enjoy this issue, let us know. 
 

The Big Picture

Mission impassable 
High-level talks between Beijing and Tokyo fail to resolve the diplomatic dust-up over the Japanese PM’s comments on the Taiwan Strait. 

• Why it matters: Sanae Takaichi refused to retreat so Beijing went into retaliation mode
• But, why are the tensions suddenly running so high and why is it all so complicated?
• Meanwhile, Japanese seafood is off the menu, Chinese travellers are rethinking trips to Japan, and more action may be on the way
• Also, will the PLA make its presence felt?
• But, is that the rumble of a backlash to Beijing’s assertiveness?

With more than 100 comments and counting, the story about China-Japan relations, Beijing warns Tokyo of ‘further action’ if Takaichi doesn’t budge on Taiwan stand, has clearly struck a nerve.

Rocky C. "The lack of resources make Japan a very vulnerable country... One would think that its best interest can be served by having amiable relationships with its closest neighbours. Russia provides resources; and China provides a market. Yet in one fell swoop, Takaichi has managed to anger all... Why are leaders these days so dumb?"

Our response: You’ve hit on the core dilemma here, Christoph. Geopolitics often clashes with economic reality. As you noted, alienating the supplier of your resources—and your largest market—is a high-stakes gamble for Tokyo. The reimposition of the seafood ban and the threat of an "unreliable entity list" are likely just the first levers Beijing will pull to test exactly how much economic pain Japan is willing to endure for its political stance.

Our readers are clearly engaged in a lively debate on the future of China-Japan relations. You've still got a couple of days to join the conversation!

Bargaining chips
The Dutch government suspends use of legislation to seize Nexperia’s European operations.

• Why it matters: it might just be the first move to end the long-running saga 
• So, how did the crisis evolve?
• Meanwhile, the European Union is hosting an Indo-Pacific summit. Is there anything in it for anyone?  

Wins and Fails

King Maha Vajiralongkorn becomes the first visiting state head to greet Chinese astronauts in orbit

Streamer Hasan Piker stirs controversy in the US over his trip to China

Big Numbers

800 million – China’s middle-class population target for the next decade

US$340 million – the value of two Chinese-built ferries to be delivered to New Zealand

656.3 tonnes – the volume of rare earth magnets China exported to the US in October

17.3% – the jobless rate for Chinese youth aged 16 to 24 in October

76.7% – the growth in China’s LNG purchases from Russia in October

Direct Quote 

“Farmers are on the verge of bankruptcy, and factory and steel workers who make our equipment are being laid off because of the collateral damage from this administration.”

John Bertman, an Illinois soybean farmer, weighs in on the fallout from the trade war and lack of Chinese buyers.