Prime Minister Sanae Takaichi, following her party’s sweeping election victory, pledged Friday to steer Japan toward greater strength and prosperity. In her policy address to parliament, she criticized China’s expanding military activities and emphasized the need to bolster Japan’s security amid an increasingly complex global environment.
“China is intensifying efforts to unilaterally alter the status quo through force or coercion in the East and South China Seas, while expanding its military presence around Japan,” Takaichi stated. She warned that Japan faces its most severe security challenges since World War II, citing threats from China, Russia, and North Korea.
To address these threats, Takaichi announced plans to revise Japan’s three key defense policy documents within the year, citing the rapid evolution of warfare and the necessity to prepare for prolonged conflicts. She also expressed her intention to accelerate discussions on relaxing Japan’s self-imposed ban on exporting lethal weapons, aiming to strengthen alliance deterrence and bolster the nation’s defense industries.
Takaichi’s comments come amid ongoing tensions with China, which regards Taiwan as part of its territory and has warned its citizens against traveling to Japan. Chinese officials, including Wang Yi, accused Japan of seeking to “revive militarism” at the Munich Security Conference over the weekend.
Economic Focus and Inflation Measures
On the economic front, Takaichi emphasized responsible fiscal policies, assuring markets she would not pursue reckless spending despite her ambitions to stimulate growth. “We are not going to adopt reckless fiscal policies that undermine confidence,” she declared. She committed to reducing Japan’s debt-to-GDP ratio while “hitting that growth switch” repeatedly to energize the economy.
Her government plans to promote domestic investment in critical sectors such as energy, healthcare, infrastructure, and cybersecurity, with a focus on growth areas like artificial intelligence, semiconductor manufacturing, and shipbuilding.
Recent government data showed that Japan’s inflation slowed in January, easing concerns about runaway price hikes. Excluding fresh food, core consumer prices increased by 2.0 percent year-on-year—the slowest rise in two years—down from 2.4 percent in December. This slowdown is seen as a positive sign for Takaichi’s priority to support households amid decades of stagnant or falling prices.
In line with her campaign promises, Takaichi suggested considering a two-year suspension of the consumption tax on food to help families cope with inflation, a move that has raised concerns about Japan’s ballooning national debt, with bond yields reaching record highs last month.
Social and Energy Policies
Takaichi also announced plans to establish a cross-party “national council” to discuss taxation and ways to fund Japan’s growing social security obligations due to an aging population. Additionally, she underscored the importance of energy security by advocating for the increased use of domestically produced, decarbonized power sources.
“Ensuring energy security through domestically produced energy is vital,” she affirmed, signaling her government’s focus on balancing economic growth with sustainable energy policies.
As Japan prepares for a new chapter under Takaichi’s leadership, her promises to strengthen national security and foster economic growth are set to shape the country’s policy landscape in the coming years.