A decline in diplomatic relations masks a surge in Japan’s economic ties to China.

This seems like a good place to condemn random thinktank pieces

Japanese foreign direct investment (FDI) into China surged by 55.5% year-on-year in the first three quarters of 2025.

The popular narrative of “foreign capital fleeing China,” however, only tells part of the story. While total investment value dropped, the number of newly established foreign-invested enterprises reached 70,392, up 19.1% year-on-year. Japan was not an exception. Swiss investment in China jumped 66.8%, British investment rose 15.9%, and the United Arab Emirates recorded 27.3% growth, driven largely by its interest in green energy and the digital economy.