Japanese Companies Expect Economic Fallout Following Takaichi Comments on Taiwan

A Reuters survey shows most Japanese firms expect economic damage after Sanae Takaichi's Taiwan remarks. Many firms are now reviewing their China strategies.

Insights:
A recent Reuters survey conducted by Nikkei Research between December 24 and January 7 indicates that more than two-thirds of Japanese companies expect significant economic damage stemming from the deterioration of relations between Japan JPJPand China CNCN. The survey, which reached 494 companies and received 237 responses, highlights growing corporate anxiety following a November statement by Prime Minister Sanae Takaichi sanae takaichi. The Prime Minister had suggested that a Chinese attack on democratically governed Taiwan TWTWcould be deemed an existential threat to the Japanese nation, a remark that Beijing characterized as provocative.
Japanese Prime Minister Sanae Takaichi shakes hands with Chinese President Xi Jinping ahead of their talks in Gyeongju, South Korea, October 31, 2025. Kyodo/via Reuters
Japanese Prime Minister Sanae Takaichi shakes hands with Chinese President Xi Jinping ahead of their talks in Gyeongju, South Korea, October 31, 2025. Kyodo/via Reuters
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