Post by : Rameen Ariff

The newly appointed Prime Minister of Japan, Sanae Takaichi, reaffirmed her commitment on Friday to bolstering the alliance with the United States while adopting a firmer approach towards China, North Korea, and Russia. In her inaugural policy address at the Tokyo parliament, Takaichi expressed her ambition to elevate Japan-US relations to "new heights" ahead of President Donald Trump's forthcoming visit to Japan.

This statement was made just three days before Trump’s anticipated arrival, during which he is likely to press allies like Japan to enhance their military expenditures. Takaichi announced that Japan intends to allocate 2% of its GDP to defense for the current fiscal year, effectively reaching its long-term goal two years earlier than anticipated.

Strengthening the Alliance and National Defence

Taking cues from her political role model Margaret Thatcher, Takaichi underscored the importance of establishing a “trusting relationship” with Washington. She stated that her administration aims to “take the Japan-US partnership to new heights,” highlighting shared security concerns in the region.

“The military actions of China, North Korea, and Russia present serious challenges,” she warned, noting that “the free, open, and stable international order we have long relied on is undergoing significant threats due to changing power dynamics.”

Quick to respond, China’s foreign ministry criticized Japan’s increased defence spending and its modified arms export policies, implying that these moves “raise serious questions” about Japan’s dedication to a strictly defensive strategy.

Addressing Immigration and Labour Challenges

Takaichi also faces pressing domestic issues, such as a stagnant economy, an ageing population, and labour shortages. While recognizing the necessity for foreign workers to fill certain roles, she is also attuned to growing public apprehensions about immigration.

“Occurrences of illegal activities and violations by some foreigners have fostered public anxiety,” she remarked. “While we categorically condemn xenophobia, the government will take strong action against such behaviors to ensure adherence to existing laws.”

In a bid to foster a “society of harmonious coexistence with foreign nationals,” she appointed Kimi Onoda as the new minister; this step is intended to facilitate better integration while preserving social stability. However, there have been erroneous online claims alleging Onoda was named “minister for mass deportations,” which the government has officially rejected.

Confronting Economic Pressures and Inflation

Confronting Japan’s climbing inflation and the cost-of-living crisis, Takaichi committed to alleviating financial pressures on households. Although specific details about her forthcoming economic initiatives remain sparse, she emphasized that prioritizing citizen support amid inflation is a key objective.

Recent statistics show that consumer prices increased by 2.9% in September, up from 2.7% in August. Economists note that inflation presents a significant concern for many households.

With a history of advocating for expanded government spending and more flexible monetary policies, Takaichi’s leadership has sparked greater investor confidence, pushing Japanese stock values to unprecedented levels. Nevertheless, she clarified that decisions regarding monetary policy will still be determined by the Bank of Japan (BoJ), which has been cautiously transitioning away from its ultra-loose stance.

Experts caution that tariffs imposed by the US may affect Japan’s export-oriented economy. “The BoJ is wary about the implications of US tariffs on corporate profitability and wage increases,” remarked Abhijit Surya from Capital Economics.

Balancing Diplomacy with Domestic Policies

As Japan’s first female prime minister, Sanae Takaichi faces the dual task of enhancing Japan's global standing while addressing domestic economic challenges. With robust approval ratings and a commitment to reforms, her governance heralds a pivotal phase for Japan—one that merges assertive diplomacy with a pressing need for home stability.

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