Japanese media on November 18, 2025, primarily focused on the deepening diplomatic rift with China over Prime Minister Takaichi's Taiwan comments. Early reports noted Japan's finance chief expressed concern over rapid forex movements as the yen weakened, and the Nikkei index began a significant decline, eventually falling over 3% due to weak tech shares and U.S. market concerns.
Throughout the day, tensions with China escalated. Japan and China senior officials held talks, but China reiterated demands for PM Takaichi to retract her Taiwan comments. By afternoon, both sides failed to bridge the gap, with Chinese officials expressing "dissatisfaction" and suggesting a prolonged chill in relations. Concurrently, discussions continued on PM Takaichi's administration and potential scenarios for a Taiwan contingency near Japan.
