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China is expected to closely watch whether Japan’s stance on the Taiwan issue will change under a new leader, after Prime Minister Yoshihide Suga said he would step down from his post, diplomats said.

The Chinese leadership under President Xi Jinping, meanwhile, is likely to adopt a “well-balanced” diplomatic strategy that would not hurt its ties with Japan, as its strained relationship with the United States has shown few signs of improving soon, they added.

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