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SENSEX74,3460.41%
BANKNIFTY54,1860.88%
NIFTY IT29,3845.57%
PHARMA24,0870.33%
AUTO26,0930.05%
FMCG48,1241.01%
METAL13,5350.17%
REALTY762.601.39%
ENERGY40,1970.02%
NIFTY23,4060.33%
SENSEX74,3460.41%
BANKNIFTY54,1860.88%
NIFTY IT29,3845.57%
PHARMA24,0870.33%
AUTO26,0930.05%
FMCG48,1241.01%
METAL13,5350.17%
REALTY762.601.39%
ENERGY40,1970.02%

Japan and China Engage in Low-Key Diplomacy

Japanese Trade Minister Ryosei Akazawa and Chinese Commerce Minister Wang Wentao had a brief chat on Friday, marking the first ministerial-level exchange of words between the two nations since a diplomatic standoff began in November. The informal talk took place at a dinner of the Asia-Pacific Economic Cooperation's trade chiefs in Suzhou, China.

According to Akazawa, he approached Wang at the dinner and had a brief conversation with him. The Japanese Trade Minister declined to disclose the details of their discussion when speaking to reporters on Saturday. The conversation would be the first ministerial-level, face-to-face interaction between the two nations since Prime Minister Sanae Takaichi's remarks over Taiwan infuriated Beijing, according to Japan's foreign ministry.

The diplomatic standoff began in November, when Takaichi suggested that Japan could hypothetically deploy its military if China used force to try to seize Taiwan. In a separate incident, Japanese Vice Foreign Minister Iwao Horii said he had a brief talk with Wang following the dinner on Friday. Horii raised the issue of a recent knife attack in Shanghai that injured two Japanese citizens, and asked Beijing to ensure the safety of Japan's nationals in China. The conversation took place on a cruise ship following the dinner.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

However, a Chinese official who is familiar with the matter and asked for anonymity to discuss confidential issues denied any such chats took place between Wang and either Akazawa and Horii. China's Commerce Ministry did not immediately respond to a request for comment on the Japanese officials' chats with Wang.

During discussions among EC trade chiefs, Akazawa raised concerns over export control measures over rare earths, an issue widely associated with such curbs by China, this year's EC host. "Japan conveyed the message that arbitrary export control measures — which differ significantly from the international practices regarding rare earths and critical minerals — could have a severe impact on global supply chains," Akazawa said. "Exporting countries should take corrective action." In October, before Takaichi's remarks, Akazawa met with Wang on the sidelines of EC meetings in South Korea, and raised similar concerns over China's export controls on rare earths.

YearEC EventConcern RaisedAction Taken
2014EC Leaders SummitTerritorial DisputeShinzo Abe and Xi Jinping met in Beijing
2023EC Meetings in South KoreaChina's Export Controls on Rare EarthsAkazawa raised concerns with Wang
2023EC Meetings in Suzhou, ChinaChina's Export Controls on Rare EarthsAkazawa raised concerns with Wang
2023EC Meetings in Suzhou, ChinaSafety of Japanese Nationals in ChinaHorii raised issue with Wang
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