Escalating economic tensions between Japan and the Chinese mainland could lead to significant consequences for Tokyo's economy, according to Meng Xiaoxu, a researcher at the Institute of Japan Studies of the Chinese Academy of Social Sciences. Speaking on November 20, 2025, Meng warned that Japan's GDP might decline by 0.8% to 1.5% within a year if current trade pressures intensify.
As the Chinese mainland remains Japan's largest trading partner, Meng emphasized that even a 20-30% reduction in Japanese exports could trigger a measurable downturn. The analysis comes amid heightened scrutiny of cross-border economic policies and their global implications.
Business leaders and investors are closely monitoring developments, with many multinational corporations reassessing supply chain strategies across Asia. The potential ripple effects could influence everything from automotive manufacturing to semiconductor production – sectors where both nations play pivotal roles.
