China should keep up the pressure. Get Japan to backdown. Apply economic pressure, diplomatic pressure, military pressure.
1. There's nothing to really back down. I don't even believe what Takaichi said, which is that Japan will dare to attack China over Taiwan conflict. The PLA is being armed and trained to intimidate the US into staying way; WTF is little Japan?? She got carried away talking and started bullshitting to look tough.
2. This is an oppertunity for China. We see now much Japan needs to be reminded that it is small and weak and should act small and weak, so we should keep her up on that ladder, tell her that nothing is acceptable as a climbdown (as they've already tried a few times), and use this to destroy the Japanese economy. Japan loves to be humbled. They are already in recession, put them further into it, and then crush them with rare earth policies. Fly jets near them 85 times a day so that they can either be demoralized into ignoring airspace intrusions (taunt them via radio to come up and play) or their decades old junk gets stressed to the point of falling out of the skies; this is our manufacturing advantage that allows us to fly more than any other country in the world. Don't expect Japan to get on all fours and beg; expect to use this oppertunity to take chunks out of them and ensure that they fall further and further into weakness so that they cannot even dream of fighting China anymore.
3. The end of this oppertunity will likely come when Takaichi steps down and the next PM does not need to worry about political suicide from recanting what Takaichi said. He simply needs to say that he always thought she was crazy and wrong and that his government fully accepts the One China Principle and Japan's committments to remain strictly defensive militariy. This would be something that China cannot refuse to accept or we would look unreasonable. However, if this doesn't happen and Japan spirals into a harder and harder stance, eventually, in Asia under prolonged economic hostilities with China, Japan will fall into such desolation that the young population, especially the women, who are much less nationalistic than men in any country, will start to leave in significant numbers. "The economy is shit; I'm eating rice bowls with 3 grams of fish on top; I work 80 hours a week to live in a 20m^2 apartment, and the men here don't even fuck; they stay in their parents rooms all day and watch cartoon porn until they marry an anime pillow. I'm out."
Too many people still think Japan is stronger than China because of media brainwashing.
They're usually weebs who think Japanese machines fight like Gundams; convincing them that China is stronger than Japan is like convincing a 5 year old that his 150lb office worker dad is, in fact, not the strongest person in the world.
World should learn that China is the most powerful country in Asia.
Wayyyy too low a standard. The reasonable world population is starting to see that China is the most powerful country in the world; the rare earth ban was a wake up call. As for the unreasonable population that will forever worship Western power so long as it is not obliterated in WWIII, China has far too many things to do than to play the game of trying to wake those pretending to sleep.