Heavyweights clash as election of hawkish PM Sanae Takaichi and US policy unpredictability change calculus in region

The likeliest scenario for 2026 is not a full-fledged conflict, but an increase in China’s political, economic and military pressure against Taiwan

Prime Minister Sanae Takaichi said a Chinese attack on Taiwan could constitute “a survival-threatening situation” for Japan, drawing sharp criticisms from Beijing.

The U.S. Treasury and Taiwan's central bank on Friday said they agreed to continue close consultations on macroeconomic and foreign exchange rate matters and both pledged to avoid manipulating the value of their currencies to gain a competitive advantage.

Taiwan’s vast surpluses have been years in the making. For decades its central bank, known as the cbc, has kept the currency undervalued, giving manufacturing exporters a competitive boost. According to the GDP -adjusted Big Mac index,

October births were down by nearly 22 percent compared to the same period last year, according to new government data.

After several Chinese ministries and government agencies expressed strong protest and stern warning against Japanese Prime Minister Sanae Takaichi's erroneous and dangerous remarks on Taiwan in recent days,

Victim who is ‘slapped hard’ on the buttocks chases assailant, kicks him in the belly; police respond by saying there is nothing they can do.