TOKYO, October 7 — Japanese Prime Minister Sanae Takaichi delivered a 30-minute policy speech on October 5, opening a 69-day legislative session at the National Diet, where she invoked an ancient Chinese proverb to underscore her vision for domestic reforms and regional diplomacy. “Where there is determination, success will follow,” Takaichi quoted from the fifth-century historical text Book Of The Later Han, setting the tone for a speech that balanced economic promises with diplomatic caution.
For all the noise, the salient point was her emphasis on Japan’s technological competitiveness amid declining global rankings—from fourth in 2007 to twelfth in 2026 on the World Intellectual Property Organization’s Global Innovation Index, behind South Korea, Singapore, and China.
Economic Policy and Fiscal Strategy
Takaichi addressed Japan’s economic stagnation directly, citing declining household benefits despite policy efforts. She framed her agenda around “protecting livelihoods through economic strength,” advocating what she termed “responsible, proactive fiscal policy” to fund a two-year cut to the food consumption tax from 8% to 1% starting April 2027. This policy creates an estimated 10 trillion yen (about US$62 billion) revenue gap, though the prime minister did not specify funding sources, arguing instead that strategic public spending would stimulate long-term growth.
She warned that hesitation in industrial policy could cause businesses, jobs, and investment to flow overseas, risking a return to stagnation. Notably, it would seem, her approval rating stood at 63% in a Japan News Network poll conducted October 3–4, up 0.5 points from the prior month, defying typical Cabinet trends.
Regional Diplomacy and Security
On foreign relations, Takaichi described China as “an important neighbour with which we share a long history of engagement” while affirming Japan’s position on territorial disputes in the East and South China Sea, Chinese military activities near Japan, and human rights concerns. She emphasized dialogue and a “mutually beneficial relationship based on common strategic interests” with China, noting her expected visit to Beijing in November for the Asia-Pacific Economic Cooperation summit.
The prime minister also condemned the October 4 robbery-murder of a 39-year-old woman in Okinawa, which led to the arrest of a 20-year-old US Marine. She confirmed Tokyo’s strong protest to Washington demanding full cooperation in the investigation while reaffirming support for the International Criminal Court and the rule of law.
Throughout her speech, she upheld the US-Japan security alliance as the bedrock of national defense.
Legislative Session and Political Style
During the plenary session, Takaichi used the word “challenge” (cho-sen) seven times to emphasize resolve, drawing enthusiastic applause from the Diet’s lower chamber. Her performance comes as Japan enters its longest legislative session in decades, with observers watching how she balances ambitious economic promises with fiscal constraints amid complex regional dynamics.
