The deepening Sino-Japanese rift is effectively an open challenge to America’s position in Asia, forcing Washington to reconcile its treaty commitments with avoiding conflict.

Co-authors Dujarric and Shin Woon observe signs that Japan is becoming more inward-focused economically (fewer Japanese studying abroad, low foreign direct investment, closed job market). They warn that this “virtual Berlin Wall” around Japan is isolating it just as the rest of Asia globalizes, risking future stagnation.