World Business Report How is Japan and China's spat affecting the economy?
Nov 17, 2025
Nick Marsh, BBC Asia business correspondent, provides keen insights into the escalating China-Japan tensions, sparked by Japan's Prime Minister's military comments regarding Taiwan. This diplomatic spat has led to a sharp decline in Japanese retail and travel stocks. Meanwhile, Carol Alexander, a finance professor at the University of Sussex, delves into the staggering decline of Bitcoin’s market value, exploring how regulatory challenges and manipulative trading have contributed to its volatility. Plus, find out about a new statue honoring Bridget Jones!
AI Snips
Chapters
Transcript
Episode notes
Diplomatic Row Spills Into Markets
- Japan-China diplomatic tensions quickly translated into economic fallout, hitting Tokyo stocks and tourism flows.
- Nick Marsh explains comments on Taiwan prompted Chinese travel warnings and refunds from airlines, hurting Japan's tourist-dependent sectors.
GDP Hit From Real Estate And Tariffs
- Japan's economy contracted nearly 2% in the three months to September, driven by real estate weakness and US tariffs on cars.
- The tariffs have since been eased under a new trade deal with Washington, but the GDP hit is already visible.
Regulation Drives Crypto Volatility
- Carol Alexander attributes Bitcoin's recent $600bn loss to lack of regulation and complex price formation.
- She warns professional traders use high leverage and manipulative strategies that amplify volatility and attract retail traders.