Prime Minister Takaichi Pledges Stable Ties With China
Prime Minister Sanae Takaichi pledged a constructive relationship with China while managing fiscal pressure from the United States and addressing Japan's population crisis.
Japanese Prime Minister Sanae Takaichi delivered a policy address to parliament on October 5, describing China as an "important neighbour" and pledging to build a constructive and stable relationship. This conciliatory tone follows a period of strained ties after Takaichi suggested Japan might intervene in a Chinese attack on Taiwan, which she previously termed a "survival-threatening situation." While seeking stability, Takaichi asserted that Japan would firmly press its claims in the East and South China Seas and demand "responsible behaviour" from Beijing.
Simultaneously, Takaichi is managing a complex diplomatic balance with U.S. President Donald Trump. She secured two summit-level talks with Trump to ensure American focus on Asia and prevent China from dictating regional policy. However, Tokyo is pushing back against U.S. Treasury Secretary Scott Bessent, whose description of the Takaichi administration as "reflationist" has contributed to rising bond yields. Finance Minister Satsuki Katayama has sought to dispel these characterizations.
On the domestic front, Takaichi termed population decline a "quietly advancing national crisis" and pledged a comprehensive strategy to combat it by year-end. She also proposed a two-year consumption tax cut on food to mitigate inflation and committed to supporting the International Criminal Court after the United States sanctioned the tribunal's Japanese President, Tomoko Akane. Chinese officials, including Wang Yi, have remained critical, suggesting that Japan must learn from historical lessons to build a future.
