China and Japan Are Entering a More Dangerous Phase of Rivalry

Neither China nor Japan wants war. The danger is that each side increasingly believes the other is preparing for one.

The Diplomat
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China and Japan Are Entering a More Dangerous Phase of Rivalry

For years, the rivalry between China and Japan has been treated as a recurring diplomatic irritant. Historical grievances stemming from Japan’s invasion of China in the early 20th century have always created animosity in the relationship. Despite the general sense of bitterness and frequent tensions over disputed islands, China and Japan managed to maintain a deep, intertwined economic relationship.

But the latest escalation is different. It hinges on a broader strategic question of whether Japan remains a restrained post-war power or becomes a mightier military actor in the balance of power against China. Tokyo appears to have chosen the latter path, and Beijing is not happy.

The most immediate trigger was Prime Minister Takaichi Sanae’s statement in November 2025 that a Chinese attack on Taiwan could constitute a “survival-threatening situation” for Japan. That specific phrase is a legal formulation that could permit the deployment of Japan’s Self-Defense Forces. China demanded that Takaichi retract the remarks, arguing that they violated the political basis of the 1972 China-Japan joint statement, which set the framework for diplomatic normalization. Takaichi refused to back down. The result has been one of the sharpest deteriorations in their ties in recent years.

A number of recent developments have made it worse. In March 2026, Japan deployed its first upgraded Type-12 land-to-ship missiles, with a range of about 1,000 kilometers, giving it a standoff capability that could reach mainland China. Beijing is particularly concerned about Japan’s plans to deploy missiles on Yonaguni, Japan’s westernmost island, around 110 km from Taiwan. 

The passage of the Japanese destroyer JS Ikazuchi through the Taiwan Strait on April 17 further aggravated Beijing. This date marks the anniversary of the treaty by which Taiwan was ceded to Japan, symbolizing a humiliating memory for Beijing. In response, China’s Foreign Ministry, Defense Ministry, and Eastern Theatre Command all condemned the move. Beijing also launched combat-readiness patrols in the East China Sea and sent warships near Okinawa after the transit.

Whether Tokyo intended the April 17 symbolism is almost beside the point. In crises, intention often matters less than interpretation. Beijing is now reading these actions through a cumulative lens. For Japan, such transits signal support for freedom of navigation and opposition to unilateral control of the Taiwan Strait. In China’s eye, Japan is becoming a more active military player in the First Island Chain.

Shortly after this incident, Takaichi sent ritual offerings to Yasukuni Shrine, while other Japanese officials visited the shrine. China condemned the offerings and visits, calling them evidence that Japan had not fully reckoned with its imperial past. 

This is not new. Yasukuni has long been a source of anger in China and South Korea because it honors Japan’s war dead, including convicted Class-A war criminals. What is new is the context. Under a leader already associated with a harder line on both history and security, a shrine offering is no longer read merely as a signal to the Japanese prime minister’s domestic conservative base. Beijing folded the Yasukuni offering into a wider narrative of Japanese “neo-militarism.”

To China, that narrative has been reinforced by Japan’s defense reforms. In April, Japan announced its biggest overhaul of arms-export rules in decades, removing restrictions that had largely confined finished defense exports to five non-combat categories: rescue, transport, warning, surveillance, and minesweeping. The change opens the way for exports of lethal arms – warships, missiles and other weapons – subject to screening. China immediately expressed concern, seeing the move as another step away from Japan’s pacifist restraints.

Takaichi also recently launched a 15-member expert panel to reassess the nation’s security and defense policies, including emergency scenarios and budget priorities. Japan had already reached its target of doubling defense spending to 2 percent of GDP under the 2022 plan, and the panel may consider further increases.

Japan’s new diplomatic language also lowered China’s standing. The 2026 Diplomatic Bluebook downgraded China from “one of the most important bilateral relations” to an “important neighboring country.” Further, the March 2026 breach of the Chinese Embassy in Tokyo by a Japanese Self-Defense Forces officer carrying a knife added another layer of mistrust. Japan called the incident regrettable and increased security, but China demanded severe punishment and argued that Tokyo’s response was insufficient.

The nuclear debate has further sharpened Chinese suspicions. Takaichi has not announced any decision to acquire nuclear weapons or seek the deployment of U.S. nuclear arms on Japanese soil. Japan still formally adheres to its Three Non-Nuclear Principles: not possessing, not producing and not permitting the introduction of nuclear weapons. Yet Takaichi’s earlier ambiguity about whether these principles would be retained unchanged in future security documents has opened a politically sensitive debate, especially over the third principle.

On April 30, Beijing issued a working paper warning about Japan’s “nuclear ambitions.” At the same time, it raised alarms over Japan’s nuclear potential at the United Nations NPT Review Conference in New York, vowing to prevent Tokyo from acquiring or hosting nuclear weapons. This is important because China is trying to internationalize the issue. It is placing Japan’s nuclear debate before the wider non-proliferation community, even though Japan remains under IAEA safeguards and is a non-nuclear-weapon state under the NPT.

Japan does have a possible interest in nuclear-powered – not nuclear-armed – submarines, provided by the United States. This is not much of a reassurance for Beijing, as it would give Japan much greater endurance, undersea reach, and stronger operational relevance in the Western Pacific. 

Neither China nor Japan wants war. The danger is that each side increasingly believes the other is preparing for one. That increases the risk of crisis escalation, because China and Japan are now reading each other’s moves through worst-case assumptions.

For the United States, Japan’s harder security posture is broadly useful. Washington has long wanted Japan to become a more capable military ally.

For India, the implications are both promising and sobering. A stronger Japan is strategically useful. It distributes China’s attention across multiple theaters and opens new possibilities for defense-industrial and economic-security cooperation. 

But India does not benefit from uncontrolled escalation between Japan and China. A crisis between them would disrupt supply chains, shipping routes, technology flows, and regional confidence. India’s best approach is therefore disciplined support for balance. It should deepen cooperation with Japan on maritime domain awareness, undersea surveillance, critical minerals, and coast guard capacity. But it should remain cautious about a revival of historical nationalism and nuclear ambiguity.

Original Source

The Diplomat

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