Asia Pacific is entering a new phase where security policy and economic policy have fused into a single bargaining system. Defence budgets, trade law, sanctions, logistics, and digital standards are now instruments of leverage. As 2026 approaches, the next global shock is more likely to arrive through prices, compliance, and supply chains than through open war.
Japan’s new prime minister has forced a choice that Tokyo spent decades avoiding. By calling a Taiwan conflict a threat to Japan’s survival, Sanae Takaichi has pleased Washington and enraged Beijing while riding high in the polls at home. Behind the drama sits a harder project that links whitewashed war memory, rearmed forces and a disposable foreign workforce.
China’s boycott of Japan is not about crowded temples or lost hotel bookings. It is a response to a Japanese prime minister speaking of force in a conflict that touches Chinese territory, against the backdrop of tens of millions of Chinese dead in the last war. Beijing is using tourism to show that history and economic power now move together.