China Japan Taiwan Relations 2026: Why Beijing Is Cooling Nationalist Heat

A decade ago, the streets burned. Today, they're quiet. China isn't letting nationalist fervor boil over this time. Despite rising tensions with Japan over the Taiwan issue, Beijing's response has been uncharacteristically restrained. According to SCMP, high economic stakes are forcing the CCP to be 'more cautious in handling external frictions'.

China Japan Taiwan Relations 2026: Diplomacy Over Outrage

Back in 2012, a dispute over the Diaoyu Islands triggered widespread attacks on Japanese cars and shops across Chinese cities. Fast forward to 2026, and the stakes are arguably higher with Taiwan at the center. Yet, Japanese property remains untouched. Observers point to economics as the primary reason for this tactical shift.

The Cost of Uncontrollable Nationalism

The Chinese government knows it can't afford a repeat of 2012. In an era of decoupling and supply chain fragility, maintaining trade with Tokyo is vital. While diplomatic pressure remains intense, Beijing is carefully auditing its responses to ensure they don't spiral into a retail boycott or physical unrest that might scare off foreign investors.