**Xi Jinping and Japanese Prime Minister Sanae Takaichi held their first bilateral meeting on October 31, 2025, on the sidelines of the APEC summit in Gyeongju, South Korea.** They reaffirmed commitments to a “strategically mutually beneficial relationship” and “constructive and stable ties,” discussed economic issues such as seafood and beef imports, rare earth export controls, and crisis management in the East China Sea, while Takaichi raised concerns over maritime activities, the Senkaku/Diaoyu Islands, and regional stability including the Taiwan Strait. Relations deteriorated sharply after Takaichi’s November 2025 parliamentary remarks linking a Taiwan contingency to Japan’s “survival-threatening situation,” prompting Beijing to protest, suspend certain imports, limit flights and tourism, and publicly criticize Japan’s defense policies and “remilitarization.” By mid-2026, bilateral ties reached their lowest point since normalization, with Chinese officials stating no reset is possible without Japan revising its Taiwan position. Japan has pursued defense enhancements, including missile deployments and export rule reviews, while both sides maintain limited dialogue through other channels. As of September 2026, no second Xi-Takaichi summit has been scheduled or confirmed. Trader sentiment on a future meeting by a given deadline reflects the structural tensions over security, Taiwan, and economic security, offset by mutual interest in tactical stabilization ahead of multilateral forums. Potential catalysts include upcoming summits (such as APEC or bilateral side meetings), shifts in U.S.-China or U.S.-Japan diplomacy involving Trump, or any de-escalatory gestures on disputed issues. Outcomes remain sensitive to verifiable diplomatic signals rather than speculation.