Relations between Japan and Taiwan have the potential to reach new heights since the election of Tsai Ing-wen as president earlier this year. Tsai's landmark victory in January catapulted her Democratic Progressive Party into power and curbed decades of political monopoly by the nationalist Kuomintang. Tsai's tenure has also resulted in a regression of cross-strait ties, as Beijing remains wary of Tsai's pro-independence support base.

Meanwhile, ties with Tokyo have reached a critical juncture. Taipei is looking at improved ties with Japan as a strategic lever in its triangular relationship between Beijing and Washington — its security guarantor. Indeed, Tsai has long held favorable views of Japan and made a controversial trip to Tokyo a few months before her election. The trip ruffled feathers in Beijing and was the first time that an opposition leader visited Japan. This also caused concern in Beijing that Tsai was looking at wooing Japan and perhaps was prepared to shelve Taipei's claim to the Senkaku Islands in the East China Sea — also claimed by China.

Now that Tsai has assumed power in Taiwan, she has taken a more balanced and pragmatic approach. Tsai has surrounded herself with some key Japan-hands such as Frank Hsieh and Chiou I-jen, but has thus far proceeded with caution. However, while not wanting to overtly provoke Beijing, Tsai rightly sees the value of a stronger relationship with Japan and has been looking for avenues to make a strategic play.