China, inflation could pop Japan PM's bubble

China, inflation could pop Japan PM's bubble

Charming Donald Trump one week and sparking China’s ire the next, Japan’s Prime Minister Sanae Takaichi has launched her term with intensity. She currently enjoys strong approval ratings despite running on little sleep and facing rising domestic and global economic tensions.

Takaichi’s early diplomatic strategy has been marked by bold, sometimes controversial outreach. Her meeting with former U.S. President Donald Trump stirred debate over Japan’s alliance strategy, while her blunt remarks toward Beijing drew sharp criticism from Chinese officials. Analysts suggest that her assertive tone plays well with nationalist voters at home, but risks frosty relations with key trading partners.

Economically, Takaichi faces mounting pressure as inflation climbs and public concern over rising prices grows. The government’s efforts to stimulate growth may collide with market fears that Japan’s fragile post-pandemic recovery could falter. Economists warn that a sharp rise in inflation could “burst the bubble” of optimism surrounding Takaichi’s early political success.

Despite these challenges, the Prime Minister projects confidence. She continues to emphasize resilience, promising reforms and stronger economic partnerships to secure Japan’s stability in an increasingly volatile global environment.

“Japan must pursue bold leadership at home and stand firm in the world,” Takaichi said during a recent policy briefing.

Author’s summary

Japan’s new Prime Minister, Sanae Takaichi, surges in popularity with assertive diplomacy and reforms, but inflation and strained ties with China could quickly deflate her early momentum.

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Tuko on MSN Tuko on MSN — 2025-11-28

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