“Those with determination will eventually succeed.” Sanae Takaichi opened and closed her 30-minute policy speech on October 5 with that line from the fifth-century Book of the Later Han, a Chinese classic. The speech launched a 69-day Diet session at the National Diet in Tokyo. The Straits Times could not say whether the choice was meant as a gesture to Beijing. The timing, at least, is hard to ignore.
A careful line on China
Ties between Tokyo and Beijing have been poor since Takaichi suggested that Japan might intervene if China attacked Taiwan. Takaichi called China “an important neighbour” and promised to seek a “constructive and stable relationship.” She is expected in China in November for the Asia-Pacific Economic Cooperation summit. Then came the caveat. Japan, she said, would “firmly assert” its positions on the East and South China Sea, Chinese military activity around the country, and human rights, and would “strongly call for responsible behaviour.”
Before the prepared text began, she went off script to condemn the “heinous” robbery-murder of a 39-year-old woman in Okinawa. A 20-year-old US Marine was arrested on October 4. Tokyo has protested strongly to Washington and asked for full cooperation. She also reaffirmed backing for the International Criminal Court, whose Japanese president, Tomoko Akane, was hit with US sanctions in August, and called the US-Japan alliance the bedrock of national defence.
Money, and a hole in it
Most of the speech dealt with the economy. Takaichi said her agenda was about “protecting livelihoods through economic strength,” and promised “responsible, proactive fiscal policy.” Her flagship measure is a two-year cut in the food consumption tax from 8 per cent to 1 per cent, starting April 2027. It leaves an estimated 10 trillion yen (S$81 billion) revenue hole. She told investors “not to worry” but did not say where the money would come from, arguing that public spending would eventually lift investment, wages and tax revenue.
She drew on a ranking to make the case for urgency. Japan placed fourth on the World Intellectual Property Organization’s Global Innovation Index in 2007. The 2026 list, released on September 29, put it 12th out of 139 economies, behind South Korea (fourth), Singapore (fifth) and China (10th). “If Japan alone hesitates, we risk seeing businesses, jobs and investment flow overseas,” she said.
Population and the session ahead
Takaichi described depopulation as a “national crisis unfolding quietly” and promised a Comprehensive Population Strategy by year-end. She signalled that foreign workers would be a last resort, with AI-driven “AX” carrying the load in essential services. The number of Japanese living in the country fell below 120 million in July, the first time in 42 years, according to government data.
She used the word for “challenge” seven times, to applause in the lower house. Her approval rating is 63 per cent in a Japan News Network poll taken October 3 and 4, up 0.5 points. The session runs to December 12. The Cabinet plans to submit 21 bills, including the food tax cut and tighter rules on foreign land purchases near security sites. Opposition lawmakers are expected to press her over two ministers previously disciplined in the LDP slush fund scandal.
Sources
- Why Japan’s PM quoted an ancient Chinese proverb to launch her ambitious policy vision | The Straits Times
- Japan PM calls China 'important neighbour', pledges stable relationship
