• TwoTigers24, New York
  • October 19, 2026

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Japan is undergoing a historic shift. It is abandoning previous decades of low key diplomacy and deflection and instead pushing back against China’s military narrative more forcefully than at any point in recent years, arguing that Beijing’s lack of transparency — not Tokyo’s defense buildup — is the real threat to regional stability. As Japan raises defense spending, expands security partnerships and eases restrictions on arms exports, China has accused it of reviving militarism. But Japanese officials counter that their policies are openly debated and publicly scrutinized, while China’s true military spending and strategic intentions remain opaque. Is Beijing’s criticism of Japan designed to shift attention away from its own unprecedented military expansion? In this episode, we examine China’s propaganda war, the debate over military transparency and what it means for security across the Indo-Pacific.

Source: Japan Challenges China’s Defense Spending as Tokyo Finally Hits Back | Taiwan Talks EP864

Summary

In this episode of Taiwan Talks, the focus shifts to a significant transformation in Japan's diplomatic and security posture. Tokyo is moving away from decades of low-key diplomacy to push back more forcefully against China's military narrative. Japanese officials argue that Beijing's lack of transparency regarding its defense buildup poses a greater threat to regional stability than Japan's own security enhancements. As Japan increases its defense spending, expands security partnerships, and relaxes restrictions on arms exports, it faces accusations from China of reviving militarism. The program examines whether Beijing's criticism serves to distract attention from its own unprecedented military expansion. The discussion highlights the contrast between Japan's openly debated policies and the opaque nature of China's strategic intentions. Experts analyze the implications of this dynamic for security across the Indo-Pacific, exploring the debate over military transparency and the broader propaganda war unfolding in the region. Recorded on June 25, 2026, the episode features insights from a panel including Lai I-chung, James Fanell, and Liou To-hai, who discuss the evolving geopolitical landscape and the challenges of maintaining regional stability amidst rising tensions.

Watch “Japan Challenges China's Defense Spending as Tokyo Finally Hits Back | Taiwan Talks EP864” on YouTube

Author

YNOT — Two Tigers Consulting From Building Bridges to Watching China About 15 years ago, I founded a small company called Two Tigers Consulting with a relatively simple idea: help American and Chinese businesses work together. At the time, China represented one of the greatest business opportunities in the world — a rapidly expanding economy, extraordinary manufacturing capabilities, and ambitious entrepreneurs eager to build relationships with American companies. Two Tigers Consulting was created to help bridge that gap. For a while, it worked. We attended trade shows, arranged meetings, and introduced companies across both cultures. But after one particularly promising trade show, several Chinese businesspeople we had met were reportedly arrested upon returning to China — apparently for traveling without proper authorization. That experience taught me something important: in China, being a successful entrepreneur doesn't necessarily mean being free to conduct business. As Xi Jinping consolidated power and the political environment shifted, we concluded the potential rewards of doing business in China no longer justified the risks. Rather than abandon our knowledge entirely, Two Tigers evolved into a platform for following, discussing, and analyzing developments inside China — its economy, political leadership, and increasingly complicated relationship with the United States. I want to make absolutely clear that I have tremendous respect for the Chinese people — their entrepreneurs, engineers, and workers are extraordinarily capable. But I also believe China's political system creates fundamental contradictions: enormous private fortunes can be accumulated, yet ultimate political authority remains firmly concentrated, making relationships based on mutual trust and predictable rules extremely difficult to sustain. Today, Two Tigers is an independent publication examining China's achievements, challenges, ambitions, and contradictions — where they intersect with the United States and the broader world. What began as a small business venture now attracts roughly 10,000 visits a day. Understanding China is no longer optional: what happens there affects businesses, economies, and people throughout the world. And that is why Two Tigers continues.

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