Escalating Tensions in Global Markets and Diplomacy

The article discusses the decline of America's mortgage market, which has been a key driver of the American dream of home ownership. The market has been fueled by government subsidies for property loans over the past century. However, the market is now facing a crisis, with potential remedies proposed by Donald Trump potentially exacerbating the issue. The article explores the implications of this decline and the potential consequences for the housing market and the broader economy.

The article discusses the deterioration of bilateral ties between China and Japan three weeks after Japan's new prime minister met with China's leader. The author, Simone McCarthy, explains the trigger and deeper causes behind the plummeting relations, particularly in the context of Taiwan.

China has urged Japan to 'behave' with restraint after Japan called for talks amid a diplomatic freeze over Prime Minister Sanae Takaichi's comments about Taiwan. China regards Takaichi's comments as interference in its internal affairs, as it views Taiwan as part of China. The Chinese foreign ministry spokeswoman, Mao Ning, stated that there are no plans for Premier Li Qiang to meet with Takaichi on the sidelines of the Group of 20 Summit in South Africa. The diplomatic tension between China and Japan has been escalating due to Takaichi's recent comments, which China sees as meddling in its internal affairs. Japan, like most countries, does not recognize Taiwan as an independent state, but China's reaction suggests a heightened sensitivity to any perceived interference. The situation highlights the complex and sensitive nature of China-Taiwan-Japan relations.

The Japanese government has lodged a complaint with China after a video surfaced showing Japanese diplomat Masaaki Kanai appearing to bow to his Chinese counterpart Liu Jinsong following their talks in Beijing. The meeting between the two diplomats ended without consensus, amid a worsening diplomatic row between Beijing and Tokyo over Japanese Prime Minister Sanae Takaichi's remarks on Taiwan. The video was posted by a social media account run by Chinese state broadcaster CCTV with a hashtag suggesting Kanai was showing deference to Liu.