Xi Jinping and Japanese Prime Minister Sanae Takaichi last met on the sidelines of the October 2025 APEC summit in South Korea, where they reaffirmed pursuit of a “mutually beneficial relationship based on common strategic interests” and “constructive and stable” ties while addressing maritime concerns, rare-earth export controls, and Taiwan Strait stability. As of late August 2026, relations remain strained by Tokyo’s defense buildup and comments linking a Taiwan contingency to Japan’s security, prompting Beijing to impose trade measures and restrict travel; a Japanese parliamentary delegation’s recent visit to Beijing signals efforts to reduce friction. No bilateral leader-level meeting has been announced for 2026, though China’s hosting of the November 2026 APEC summit in Shenzhen creates a scheduled multilateral forum where a handshake could occur. Trader assessments of whether another Xi-Takaichi encounter takes place by the market’s cutoff therefore hinge on the pace of diplomatic de-escalation, any crisis-management talks between defense authorities, and whether either side prioritizes a high-profile bilateral encounter ahead of or during the Shenzhen gathering.