J Update

Prime Minister Sanae Takaichi   announced   at Committee on Budget in the House of Representatives on November 7 th  that she would revise the target of primary balance of national budget from annual one to multiple years. It will make easier for the government to issue governmental bonds (GB), which balance is already at the worst level among developed countries. It is concerned that fiscal discipline of Japan will be further deteriorated.   Primary balance indicates how national budget is healthy. It is drawn by deducting spendings except redemption for GB from revenue except income through issuing new GB. It means how national budget can be maintained without relying on debt.   It was former prime minister Jun-ichiro Koizumi, being serious about fiscal healthiness as setting limitation of issuing new GB at annual 30 trillion yen, who  set the target  of achieving that surplus in early 2010s in 2002. The target became FY2011 in 2006, which was not im...

In the discussion at Committee on Budget in the House of Representatives on November 7 th , Prime Minister Sanae Takaichi  revealed  her recognition that a contingency in Taiwan can be categorized as a “survival-threatening situation,” which is a condition for Japan to use force as an exercise of collective self-defense right. Although former prime ministers did not give a clear answer on it, Takaichi passed the line to a question of a veteran opposition lawmaker. It is concerned how China responds to it.   For decades after the World War II, Japan had been interpreting Article 9 of the Constitution as prohibiting exercise of collective self-defense right which means use of force for foreign country with close relationship with Japan. Former prime minister Shinzo Abe reinterpreted it and enable Japan to exercise collective self-defense right in a kind of situation, even if no direct attack on Japan is made. The situation is named “survival-threatening situation.”   T...

Sanae Takaichi Cabinet   launched  a new conference of cabinet ministers for discussing measures to deal with social problems caused by foreigners in Japan. They raised some agenda to discuss, which included illegal foreigners in Japan, further regulation on foreigners’ purchase of the land and false payment of social insurance. Although Takaichi argues that fixing problems of foreigners is one of her major political agenda, the measures discussed in the ministers’ conference are something the previous administrations have already tackled on.   Japan has been accepting foreigners to compensate labor shortage in farms or small businesses in local economy, which caused annual increase of foreigners in Japan in recent years. The government of Japan is going to introduce new system for foreign workers, in which technical interns will be replaced by “educational working” in 2027. Japan has also been promoting tourism to boost Japanese economy, seeking income from purchasing go...

The extraordinary session of the Diet started   debate  over Prime Minister Sanae Takaichi’s policy speech by the representatives of parties. Takaichi was fundamentally negative on promoting political reforms on donations or reduction of Diet seats. Instead, she showed her ambition to promote her economic policies. It is still unclear whether she can overcome current situation of a minority government in the Diet.   The reduction of Diet seat is one of the commitments in the agreement for building a coalition between the Liberal Democratic Party (LDP) and Japan Innovation Party (JIP). They agreed on concluding 10 percent reduction in proportional district of the House of Representatives during current session of the Diet. However, the opposition parties are firmly negative on LDP-JIP idea, because reduction only in proportional district works against small parties.   The leader of the Constitutional Democratic Party, Yoshihiko Noda, proposed Takaichi that the reducti...

With establishment of new administration in October, the government of Japan looks like changing its policy on domestic trade of rice Although the previous administration led by Prime Minister Shigeru Ishiba sought increase of rice production, Sanae Takaichi Cabinet seems to pursue less production to maintain wholesale price. It is questioned whether Takaichi would stabilize steep inflation of rice. Rice inflation occurred when the Minister of Agriculture, Forestry and Fisheries (MAFF) miscalculated the production of rice in the harvesting season of the fall 2024. The trade market was paralyzed with speculation of shortage of rice and the price was elevated quickly in late 2024. It doubled from early summer in 2024 to May 2025, as traders kept rice in their backyard, being afraid of shortage of rice supply.   Ishiba appointed Shinjiro Koizumi to Minister of MAFF in May and Koizumi urged the traders to provide more rice to the market, with a decision of releasing national rice reser...

Prime Minister Sanae Takaichi   revealed  that she had requested North Korea to have a summit meeting with Kim Jong Un to settle the issue of abduction of Japanese. Takaichi has been recognized as a hardliner to North Korea. It is unclear whether Pyongyang will accept the request. North Korea’s abduction issue is well known as an agenda with which former prime minister Shinzo Abe earnestly grappled. Takaichi is likely to attract the conservative groups that follow Abe’s legacy. Takaichi told about the request in her speech to a meeting of abductees’ community held in Tokyo on November 3rd. She insisted that she would make best effort whatever it takes to secure lives of Japanese abductees and sovereignty of Japan. “I will seek a practical outcome through one-on-one meeting between supreme leaders and taking bold actions as the leader,” said Takaichi.   Abe argued that North Korea had kidnapped some Japanese citizens away in 1970s and 1980s. He attended prime minister Jun-...

The major six parties in the Diet – the Liberal Democratic Party (LDP), Japan Innovation Party (JIP), the Constitutional Democratic Party of Japan (CDPJ), the Democratic Party for the People (DPP), Komeito, and Japan Communist Party (JCP) --   agreed   on abolishing provisional gasoline tax rate by the end of 2025. It marked the first comprehensive policy agreement beyond the aisle after Sanae Takaichi administration started on October 24 th . However, those parties have not found relevant fiscal resource for the tax cut. The provisional tax rate was introduced in 1974 to build or maintain roads. 25.1 yen per litter has been imposed on gasoline, and 17.1 yen on diesel oil. Elimination of provisional gasoline tax rate was first proposed by DPP last year and DPP reached an agreement with the LDP and Komeito to abolish it last December. But it has not been implemented, because they could not find a fiscal resource. After the defeat in Upper House election in July 2025, the LDP de...

Japan is under unusual threat this year. Twelve people were killed, marking the worst record in Japan. Japan Self-defense Force (JSDF) was dispatched for the first time to secure life and property of Japanese citizens. The conference of national government on this issue was upgraded from the level of officials of ministries to ministers. This threat is not about military power of North Korea or China, but wild bears frequently appearing in urban area.   Wild bears are broadly living in highlands of Northern Japan. the Island of Hokkaido is known as the place with brown bears and Japanese black bears are prevalent in northern part of Honshu Island (Tohoku area). Two people were killed in Hokkaido by assault of brown bears in Hokkaido this summer. The deaths and injuries moved to Tohoku as fall began.   Far more victims were seen in Tohoku than in Hokkaido so far. One characteristic of wild bears this year is that they would not be frightened by seeing humans. The bears not only...

The Prime Minister of Japan, Sanae Takaichi, had her first meeting with the President of People’s Republic of China (PRC), Xi Jinping, in the backdrop of Asia-Pacific Economic Cooperation summit at Gyeongju, South Korea, on October 31 st . Both leaders agreed on maintaining a basic principle of their bilateral relations for years, called “mutually beneficial relationship based on common strategic interests.” However, it became a meeting without smile, reflecting their complicated relations these years. At the beginning of the meeting, Xi  told  Takaichi that he was ready for development of China-Japan relations on the right track. Takaichi replied that she hoped to reduce various issues between their countries and increase understandings and cooperation to achieve certain result. Takaichi insisted on developing personal relationship with Xi through dialogues. They  concurred  on building “constructive and stable Japan-China relations.”   Two leaders raised a lot...

Prime Minister Sanae Takaichi   had a meeting   with the President of Republic of Korea (ROK), Lee Jae Myung, taking opportunity of participating in the summit meeting of Asia-Pacific Economic Cooperation (APEC) at Gyeongju, South Korea, on October 30 th . Both leaders reconfirmed maintenance of close bilateral relationship which they succeeded from their predecessors. Built in the trilateral security framework including the United States, both countries do not have a choice to confront each other on such issue as historical dispute. Since inauguration of Takaichi as the prime minister, it has been concerned that she would not be able to manage bilateral relationship with ROK. Takaichi identifies herself as a successor of former Prime Minitser Shinzo Abe, whose administration exacerbated Japan-ROK relationship to the worst level after those countries normalized their relations in 1956. Considering then ROK president, Moon Jae-in, is the political mentor of Lee, it has not been...

As three years have passed since former prime minister Shinzo Abe was assassinated, a trial for defendant Tetsuya Yamagami, who were charged with crime of murder,   started   in Nara District Court on October 28 th . Yamagami admitted his murder of Abe and pleaded guilty for it. The court is going to hand out a sentence on January 21 th , 2026, going through eighteen more trials by the end of this year. Abe was shot and killed on July 8 th , 2022, when he was making a speech for a candidate of Liberal Democratic Party in the Upper House election campaign at a crossing in front of Yamato Saidaiji station, Nara. The police arrested Yamagami, who were at the venue, with suspicion of murder by shooting Abe with his hand-made gun. “He boldly killed former prime minister in daytime, bringing an unprecedented consequence in post-war history,” said the public prosecutors in the trial.   Considering this case’s great influence on Japanese society, the court carefully made legal pr...

The President of the United States, Donald Trump, made a state visit to Japan on October 27 th  and had a summit meeting with Prime Minister, Sanae Takaichi, next day. In the first face-to-face meeting with him, Takaichi treated the president with pledges of boosting defense budget, which would contribute to lightening U.S. security burden in Asia, and menu of private investment amounting to 60 trillion yen. They declared “golden age” of Japan-U.S. alliance. Takaichi did everything Trump likes. The title of  joint statement  was named after Trump’s 2025  inaugural address  which said “The golden age of America begins right now.” Knowing that Trump loves playing golf, she presented a set of gold-gilded golf balls and tees and a putter used by late former prime minister Shinzo Abe with whom Trump embraced friendship in his first term.   The proposals from Takaichi were aligned with preference of Trump. Takaichi explained that Japan would grapple with further ...

The first poll on Sanae Takaichi administration marked high approval rate among past prime ministers. Although Takaichi failed in maintaining the leading between the Liberal Democratic Party (LDP) and Komeito, the respondents positively accepted the new cooperative framework by the LDP and Japan Innovation Party (JIP). However, people are still skeptical about Takaichi’s handlings of political reform over political funds or reduction of Diet seats. In the  poll  of  Yomiuri Shimbun  right after establishment of Takaichi Cabinet, the approval rate of the cabinet was 71 percent with 18 percent of disapproval.  Asahi Shimbun  reported its  poll  with 68 percent of approval for Takaichi Cabinet and disapproval at 19 percent a week after new administration started. The  poll  of  Mainichi Shimbun  showed mostly the same result with 65 percent of approval and 22 percent of disapproval.   Those polls indicated that Takaichi Cabin...

Japan Innovation Party (JIP), junior coalition partner of Liberal Democratic Party (LDP), embraces a concern of how to keep its presence in the scene of Japanese politics. LDP Prime Minister Sanae Takaichi did not mention reduction of Diet seats in her first   policy speech  in current Diet session. JIP cannot be sure whether the coalition with the LDP will bring a victory in next national election.   In her speech to the Diet, Takaichi promised that she would reduce payment of the people in working age. “We will promote discussion on issues that require immediate measures,” said Takaichi. It was still unclear which would need “immediate measures” and which could be left behind. It is up to the prime minister which policy will be picked. It is highly unclear when JIP’s policies will be implemented.   Takaichi dropped reduction of Diet seats from her policy speech. The leader of JIP, Hirofumi Yoshimura, labeled the issue as “absolute condition” for forming a coalition...

Chief Cabinet Secretary, Minoru Kihara,   announced   on October 24th that the government would discuss establishment of “National Intelligence Bureau (NIB)” to oversee collection and analysis of information, with order of Prime Minister Sanae Takaichi. The idea of enhancing intelligence system was one of the issues in   the coalition agreement  with Japan Innovation Party (JIP). Takaichi has just begun implementation of the agreement.   Takaichi ordered Kihara to consider building an organization to oversee the intelligence that the government would collect, when Takaichi Cabinet was formed on October 21. Takaichi had acknowledged the vulnerability in dealing with delicate intelligence in the government of Japan. “It is necessary for us to reinforce function of intelligence to secure national interest and safety of our nationals, when international security environment is most severe in post-war era,” said Kihara in his press conference.   NIB will not tot...

Prime Minister Sanae Takaichi made her first   policy speech  in the extraordinary Diet session on October 24. In her speech, Takaichi insisted on “responsible and active fiscal policy” to deal with investment for crisis management. She also expressed her willingness to increase defense budget without showing fiscal resource for it. However, she refrained from referring to enhancing confidence on management of political funds. Takaichi will only be responsible for her own agenda.   “To achieve ‘strong economy,’ we will make a strategic spendings under the concept of ‘responsible and active fiscal policy,’” stressed Takaichi in her speech. She explained that her policy would improve people’s mind for consumption, boost corporate profit and increase fiscal revenue without raising tax rates. Although she argued that the rate of governmental debt increase would be less than rate of economic growth and her government would achieve sustainability, she did not elaborate how her ...

Prime Minister Sanae Takaichi identifies herself as a successor of former Premier Shinzo Abe. Her choice of staffs in the Prime Minister’s Office reflects her loyalty to Abe. So what kind of policies does Takaichi follow form former Abe administration? It is likely that she hopes to promote active governmental spendings, which was Abe’s typical economic policy called Abenomics, and engagement with security in Asia-Pacific region. Takaichi appointed Takaya Imai to a Special Advisor to the Cabinet. Imai was an officer in Ministry of Economy, Trade and Industry (METI) and a secretary of prime minister Abe in his first and second term. Backed by Abe’s strong grip on the government and the ruling Liberal Democratic Party, Imai exercised his influence on ministries to promote Abe’s policies.   Abenomics was a mixture of economic policies with increase of spendings to provide governmental money into the market, depreciation of Japanese yen to encourage Japanese exporters and growth-orient...

At the starting point of her cabinet, Prime Minister Sanae Takaichi ordered her ministers to grapple with the issues that would be necessary for implementing her promises in the presidential election of Liberal Democratic Party (LDP) or the coalition agreement with Japan Innovation Party (JIP). The first focus of Takaichi looked to be on economic policies.   On the first day of her cabinet, Takaichi sent out a letter to her ministers on October 22 nd . Takaichi demanded in the letter to strengthen Japanese economy by changing people’s concerns on their life or future into hope. It contained three issues to deal with: achieving a strong economy, defending people’s life in local communities and enhancement of diplomacy and defense.   To achieve strong economy, Takaichi proposed introduction of “investment of crisis management” and “responsible and active fiscal policy.” She  explained  investment of crisis management to be preemptive and strategic investment on various...