**Recent diplomatic efforts amid persistent strains shape expectations for any Xi-Takaichi meeting.** Sanae Takaichi, Japan's prime minister since October 2025, met Xi Jinping once at the APEC summit in South Korea on October 31, 2025, where both sides reaffirmed interest in a “mutually beneficial relationship based on common strategic interests” and “constructive and stable” ties while airing concerns over maritime activities, rare earth exports, and regional stability. Ties deteriorated after Takaichi’s November 2025 remarks linking a Taiwan contingency to Japan’s security, prompting Chinese criticism and reduced high-level contact. As of August 2026, a cross-party Japanese delegation including LDP lawmakers arrived in Beijing for talks aimed at restoring communication—the first such mission in months—with additional delegations (including former Foreign Minister Takeshi Iwaya) planned for late September and business groups later in the year. Key upcoming catalysts include China’s hosting of the APEC leaders’ meeting in Shenzhen in November 2026, which historically facilitates bilateral sidelines, alongside any G20 or other multilateral opportunities before year-end. Persistent issues—East China Sea activities, defense spending debates, and Taiwan-related sensitivities—continue to influence the pace of engagement, with traders monitoring signs of further thaw or renewed friction through official statements and delegation outcomes.