Sanae Takaichi Marks First Year as Japan's First Female PM

Prime Minister Sanae Takaichi completed her first year as Japan's first female leader on October 21, 2026. Her tenure has been defined by a bold economic vision and a significant increase in national defense, including a record budget, the deployment of missile launchers to outer islands, and eased weapons export rules. While her state support for strategic sectors helped drive stock markets to record highs, the spending has sparked fiscal sustainability concerns, pushing 30- and 40-year bond yields to 30-year highs.

Takaichi led the Liberal Democratic Party to a landslide election victory and has maintained approval ratings between 40% and 60% through a direct communication style and a preference for social media over traditional briefings. However, she faces domestic challenges, including the October 14 resignation of Agricultural Minister Kazuo Yana following controversial remarks about municipal funding and scrutiny over proposed consumption tax cuts on food and drink.

Internationally, Takaichi has strengthened the alliance with the United States, meeting with Donald Trump four times to ensure stability. Conversely, relations with China have deteriorated after Takaichi suggested Japan could intervene militarily if Taiwan were attacked, prompting China to impose trade restrictions and travel warnings. Takaichi has also implemented stricter immigration controls, including tougher requirements for permanent residency and business manager visas.