Japanese Prime Minister Sanae Takaichi invoked a classical Chinese proverb to frame her policy speech on October 5, marking the start of a 69-day session of the Diet. Drawing from the fifth-century historical text *Book of the Later Han*, she emphasized that “those with determination will eventually succeed,” a theme underscoring the ambitious economic and diplomatic challenges her administration faces.
In her 30-minute address, Takaichi acknowledged China as “an important neighbour with which we share a long history of engagement,” signaling a nuanced approach to Tokyo’s complex relationship with Beijing. Relations have cooled since late 2025, when she broke with diplomatic convention by explicitly suggesting Japan might intervene militarily should a Chinese invasion of Taiwan provoke a threat to Japan’s security. While preparing to attend the Asia-Pacific Economic Cooperation summit in China next month, she expressed commitment to dialogue and the pursuit of “a mutually beneficial relationship based on common strategic interests.”
Nonetheless, Takaichi drew firm boundaries on issues including territorial disputes in the East and South China Seas, Chinese military activity around Japan, safety concerns for Japanese citizens in China, coercive tactics, and human rights. She pledged to press for “responsible action” from Beijing on these fronts.
Domestically, the prime minister focused on revitalizing Japan’s economy, which has struggled with stagnation for decades. She highlighted intensifying global competition, particularly from China, South Korea, and Taiwan in sectors such as automobiles, artificial intelligence, and semiconductors. Noting Japan’s slip to 12th place in the 2026 Global Innovation Index—behind South Korea, Singapore, and China—Takaichi warned that hesitation could lead to a loss of business, jobs, and investment overseas.
Her economic strategy includes a two-year reduction of the food consumption tax from 8 percent to 1 percent starting in April 2027, designed to stimulate domestic demand. While she did not specify funding sources to cover an estimated 10 trillion yen revenue shortfall, she assured markets that “responsible, proactive fiscal policy” and strategic public spending would strengthen the economy, increase real wages, and bolster business profits.
Takaichi also referenced a recent high-profile criminal case involving the killing of a 39-year-old woman in Okinawa by a U.S. Marine. She condemned the “heinous” crime and announced that Japan has lodged a formal protest with Washington, demanding full cooperation for the investigation.
On foreign policy, the prime minister reaffirmed support for the post-war international order and institutions such as the International Criminal Court, reiterating Japan’s commitment to the rule of law and peaceful conflict resolution. At the same time, she underscored the crucial role of the U.S.-Japan security alliance as the cornerstone of national defense.
Addressing demographic challenges, Takaichi described Japan’s declining birthrate as a “national crisis unfolding quietly.” She announced plans to develop a Comprehensive Population Strategy by year-end, emphasizing innovation—particularly artificial intelligence transformation—as a key tool to address workforce shortages in sectors like healthcare and logistics. She stopped short of proposing an expanded immigration policy, reflecting ongoing domestic opposition, and suggested that accepting foreign nationals would be a last resort.
The current Diet session, running through December 12, will consider 21 bills, including the food tax cut and tighter rules on foreign land acquisitions near sensitive security sites. Opposition lawmakers are expected to challenge Takaichi on recent Cabinet appointments, notably Agriculture Minister Kazuo Yana and Education Minister Yoshihiro Seki, both linked to a political slush fund scandal.
Takaichi’s speech, punctuated by the repeated use of the word “challenge,” was met with applause from the ruling Liberal Democratic Party and coalition members. Her administration, approaching its first anniversary in office, continues to maintain strong public approval, with recent polls showing support at 63 percent. Yet questions remain about her ability to translate determined rhetoric into tangible policy outcomes amid shifting economic realities and volatile geopolitical tensions.