China, Japan and Taiwan
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From China’s point of view, the Japanese Prime Minister’s remarks on Taiwan test a red line - a trigger that sets this dispute apart from past flare-ups, analysts say.
Both countries have summoned each other’s ambassadors after Prime Minister Sanae Takaichi said a Chinese attack on Taiwan could draw a military response from Tokyo.
Beijing is flexing its military and economic might to show its displeasure with the Japanese leader’s comments about defending Taiwan. But its aggressive approach risks backfiring.
Japan-China diplomatic row escalates driving volatility in Nikkei 225. Analysis of market impact, tourism sector risks, and trade implications for Asian economies.
The cancellations amount to roughly 32 per cent of Chinese airlines' total bookings to Japan, said a veteran aviation analyst.