How Japan Is Reckoning With Its Increasingly Tense Neighborhood

Some of the world's largest economies are struggling with a response to the rising influence of China and Russia. Specifically, how the ambitions of those two authoritarian nations tend not to conform with Western ideals. And nowhere is this more relevant than in Japan, for whom China, Russia and indeed North Korea are neighbors.

Those tense relations and their economic implications are top of mind at this week's Group of Seven summit in Hiroshima, Japan, where we take you for this episode. From a city that suffered the unspeakable destruction of nuclear weapons, Bloomberg's Yoshiaki Nohara explains how the nation is now trying to balance its longtime aversion to war with the growing threats in its backyard.

Stephanie then sits down with Richard McGregor, a senior fellow at the Lowy Institute in Sydney, and Rory Medcalf, who leads the National Security College at the Australian National University. They discuss not only Japan's strategic role in the Indo-Pacific region, but also China's significance in the global economy.

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