China warns Japan that ‘new militarism’, ‘Takaichinomics’ risk instability | South China Morning Post

People’s Daily, a mouthpiece of China’s ruling Communist Party, has warned Japan that higher military spending and what the newspaper called a looming “defence bubble” will not save an economy weakened by the falling yen and Iran war energy crisis, amid a protracted diplomatic row between Beijing and Tokyo.

In a Tuesday commentary published under the “Zhong Sheng” pen name – a pseudonym used to voice Beijing’s position on global affairs – the paper said the administration of Japanese Prime Minister Sanae Takaichi was pursuing a “political gamble” that was “doomed to fail in resolving deep-rooted structural problems”.

“The Takaichi administration’s obsession with militaristic adventurism is by no means a cure for the Japanese economy, but a poison that will accelerate its decay,” it said.

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The piece took aim at “Takaichinomics” – a neologism for the Japanese prime minister’s economic programme – often described as a mix of aggressive public spending and higher investment in defence and economic security**.** It said Tokyo was attempting to mask governance failures with arms spending and aggressive fiscal expansion, a strategy that some critics warn could exacerbate the country’s massive public debt.

The Japanese economy – already strained by a weak yen and import-driven inflation – has suffered a fresh shock from the US-Israeli war with Iran, which has pushed up oil prices and revived the spectre of stagflation.

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The commentary said Japan was “under the dual squeeze” of an “oil premium” and a struggling yen, warning that the impact was rapidly spreading from the energy sector to people’s daily lives.