Japan firms say strained Sino-Japan ties top concerns for 2026

TOKYO, Dec 11 (Reuters) – Japanese companies said strained diplomatic relations with China are their primary concern as they head into 2026, followed closely by U.S. trade policies, a Reuters survey showed on Thursday. Ties between the Asian neighbours have deteriorated since Japanese Prime Minister Sanae Takaichi told parliament last month that a hypothetical Chinese attack on democratically governed Taiwan could trigger a Japanese military response. Asked what makes companies most concerned when forecasting business conditions next year, a quarter of survey respondents chose ties with China, while 22% picked U.S. trade policies. China, along with the United States, is…