Takaichi makes her trip to the APEC summit in China depend on parliament as Tokyo weighs tax rises for defense

Prime Minister Sanae Takaichi will attend the Asia-Pacific Economic Cooperation (APEC) summit in China if the parliamentary schedule allows, the Japan Times reported. The summit, set for Shenzhen on November 18 and 19, often gives Japanese and Chinese leaders a chance to meet. Ties have been frozen since Takaichi said in November 2025 that Japan could intervene militarily if Taiwan were attacked. At the 2025 APEC meeting in South Korea she met Taiwan's representative, and China's foreign ministry lodged a formal protest calling the meeting a serious violation of the one-China principle.

Signals from Tokyo this week pointed in different directions. Jiji Press reported that Wakamiya, an aide to the prime minister, visited Yasukuni Shrine. Beijing regards the shrine as a symbol of Japanese wartime aggression. Russia's TASS, citing Kyodo News, reported that Japan may raise taxes to pay for military programs. Japanese reporting has said the government plans to bring forward its target of defense spending at 2% of output, partly funded by higher income tax.

Fiscal policy is moving in two directions at once. Rahul Anand, the IMF's mission chief for Japan, called the government's temporary tax cut plan a "very welcome step". Tokyo is cutting some taxes temporarily while it considers permanent increases for defense, and Japanese long-term bond yields are already elevated.