The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.
Economic News
▶ 1st Japan-EU Clean Energy Industrial Policy Coordination Working Group Held
25 Oct, 2024
On October 24, Mr. Kihara Shinichi and Ms. Cristina Lobillo-Borrero convened the first meeting of the Japan-EU Clean Energy Industrial Policy Coordination Working Group. This group was established to discuss measures for building resilient supply chains in the clean energy sector, following an agreement made at the Japan-EU Hydrogen High-Level Business Forum on June 3, 2024. During the kickoff meeting, both parties presented their support policies for clean energy and agreed to continue discussions at the administrative level.
METI: https://www.meti.go.jp/english/press/2024/1025_001.html
▶ G20 Trade and Investment Ministerial Meeting
25 Oct, 2024
On October 24, the G20 Trade and Investment Ministerial Meeting was held in Brasilia, Brazil, with Japan represented by Mr. KATAHIRA Satoshi and Mr. MATSUO Takehiko. Key discussion themes included WTO reform, women in international trade, trade and sustainable development, and sustainable investment agreements. Japan advocated for timely WTO dispute resolution reform, increased transparency in industrial policies, and the early implementation of the Fisheries Subsidies Agreement. The country also emphasized promoting women's participation in trade and ensuring climate measures remain trade-friendly. Additionally, Japan condemned Russia's invasion of Ukraine due to its negative global economic effects.
MOFA: https://www.mofa.go.jp/press/release/pressite_000001_00673.html
▶ Japanese team makes concrete in different way to cut CO2 to zero
28 Oct, 2024
Researchers from the University of Tokyo and Hokkaido University have developed a type of concrete that emits no carbon dioxide (CO2) during production and absorbs more CO2 than it releases. This innovative concrete is made using an alternative method that involves pulverizing concrete waste and exposing it to CO2, transforming it into calcium carbonate without the high-temperature calcination process that typically generates emissions. The team aims to gain Building Standards Law certification for this material by fiscal 2029, having already met the minimum requirements for commercialization. This concrete variant meets strength criteria and is currently being tested for compatibility with steel fittings for structural use. The researchers plan to enhance production efficiency while maintaining the quality of the material.
Asahi: https://www.asahi.com/ajw/articles/15450173
▶ Japan sets 2030 for sustainable aviation fuels to take root
29 Oct, 2024
Japan's government aims for sustainable aviation fuel (SAF) to be essential for decarbonizing the aviation industry by fiscal 2030. Following a recent advisory panel meeting, the industry ministry plans to revise related ordinances next fiscal year. SAF, primarily derived from waste cooking oil, emits only 20% of the carbon dioxide of traditional jet fuel. The government will ask major energy distributors to supply SAF to match at least 5% of the CO2 emissions from jet fuel in fiscal 2019. Despite some airlines adopting SAF, global usage was only 300,000 kiloliters in 2022, just 0.1% of total aviation fuel consumption. To achieve carbon neutrality by 2050, about 450 million kiloliters of SAF will be needed. Rising costs of waste cooking oil, now over three times that of traditional fuels, pose challenges for scaling production.
Asahi: https://www.asahi.com/ajw/articles/15453064
▶ Visit to Japan by H.E. Mr. Josep Borrell Fontelles, High Representative of the European Union for Foreign Affairs and Security Policy, Vice-President of the European Commission
29 Oct, 2024
H.E. Mr. Josep Borrell Fontelles, the EU's High Representative for Foreign Affairs and Security Policy, will visit Japan from 31 October to 2 November. During his visit, he will meet with Japan's Foreign Minister, Mr. IWAYA Takeshi, for the 1st Japan-EU Foreign Ministers’ Strategic Dialogue on 1st November. They will discuss the Japan-EU relationship and security cooperation. Additionally, the Japan-EU Security and Defense Partnership will be announced, and the exchange of ratification instruments for the Japan-EU Strategic Partnership Agreement will take place. Borrell's visit aims to strengthen the strategic partnership between Japan and the European Union.
MOFA: https://www.mofa.go.jp/press/release/pressite_000001_00680.html
▶ Courtesy call on Prime Minister Ishiba by participants of the Japanese-German Forum
31 Oct, 2024
On October 31, Prime Minister Shigeru Ishiba met with participants of the 32nd Japanese-German Forum in Tokyo, highlighting the importance of bilateral cooperation. Co-chairs Eizo Kobayashi and Matthias Nass reported on discussions regarding Japan's declining birthrate, aging population, generative AI, and diplomatic roles. Ishiba expressed hope that the forum would strengthen Japan-Germany relations and provide valuable recommendations. Established in 1993, the forum aims to enhance mutual understanding through annual meetings of experts from various sectors.
MOFA: https://www.mofa.go.jp/erp/c_see/de/pageite_000001_00625.html
Japan Election
▶ Japan's ruling LDP coalition loses majority for first time since 2009
27 Oct, 2024
Japan's ruling coalition, led by the Liberal Democratic Party (LDP) and its partner Komeito, lost their majority in the lower house of parliament for the first time since 2009 in a recent snap election. The coalition secured 215 seats, falling short of the 233 needed for a majority, while opposition parties gained a total of 235 seats. Prime Minister Shigeru Ishiba, who took office on October 1, faces uncertainty and potential internal pressure to resign after calling for the election just eight days into his tenure. The LDP remains the largest party with 191 seats but will need to negotiate new alliances or govern as a minority. Voter turnout was approximately 53.11%, reflecting public dissatisfaction, particularly due to a political funding scandal involving LDP lawmakers. Ishiba has indicated a willingness to explore coalition options but faces significant challenges, as key opposition parties have ruled out joining an LDP-led government.
Nikkei Asia: https://asia.nikkei.com/Politics/Japan-election/Japan-s-ruling-LDP-coalition-loses-majority-for-first-time-since-2009
▶ Record number of women elected to Japan's Lower House
28 Oct, 2024
In Japan's recent general election, a record 73 women were elected to the Lower House, making up about 16% of its members, still below the global average of 27%. Of the 314 women who ran, the Constitutional Democratic Party (CDP) elected the most, with 30 women, while the Liberal Democratic Party (LDP) had 19. Japan ranks 163rd globally for women's representation in politics, with only 10.8% of lawmakers being women. Despite some improvements in female political participation, Prime Minister Shigeru Ishiba's Cabinet includes only two female ministers. The LDP aims to increase its female lawmakers to 30% by 2033, but currently has just 9.9%. Experts stress the importance of creating an environment where women can express their policy views and influence decision-making beyond mere numbers.
Japan Times: https://www.japantimes.co.jp/news/2024/10/28/japan/politics/women-elected-lower-house/
▶ Japan's Ishiba eyes minority government after opposition shuns coalition
30 Oct, 2024
Japanese Prime Minister Shigeru Ishiba faces challenges in maintaining power after the Democratic Party for the People (DPP) ruled out joining his coalition with Komeito, despite gaining 28 seats in the election. With the LDP-Komeito coalition losing its majority, Ishiba is exploring a "partial alliance" with the DPP to secure support for key economic legislation, including upcoming budgets. DPP leader Yuichiro Tamaki stressed the need for the coalition to listen to the electorate to pass these budgets. The parliamentary session on November 11 will involve a vote for prime minister, likely between Ishiba and CDP leader Yoshihiko Noda. Tamaki aims to promote DPP economic policies focused on increasing take-home pay and public welfare amid a fragmented political landscape.
Business News
▶ Bridgestone designs tire that never goes flat
26 Oct, 2024
Bridgestone has developed a revolutionary puncture-proof tire called Airfree, currently in the testing phase. This tire features plastic spokes instead of an inner air tube, eliminating the risk of flats and the need for air pressure maintenance. Initially targeting buses and low-speed vehicles, Airfree is set to launch in 2026, with plans for use in community buses and small electric vehicles. Local government officials recently tested the tire and reported a positive experience. Bridgestone aims to enhance ride comfort, reduce costs, and promote recycling with this new product, making it particularly appealing for electric vehicle drivers who benefit from the maintenance-free design.
Asahi: https://www.asahi.com/ajw/articles/15482201
▶ Japan 'Silicon Island' investments top $30bn ahead of TSMC opening
27 Oct, 2024
Taiwan Semiconductor Manufacturing Co. (TSMC) will begin mass production at its first plant in Kyushu, Japan, by the end of this year, marking a significant step in the country’s semiconductor revival, backed by approximately 5 trillion yen ($32.7 billion) in investments. The Kumamoto prefecture plant will produce various logic chips, with a second plant planned for 2027.Japan's government is subsidizing up to 1.2 trillion yen ($7.9 billion) for these projects. Kyushu is emerging as Japan's "Silicon Island," attracting over 100 semiconductor-related investments since April 2021. Other companies, including Sony and Rohm, are also investing in semiconductor facilities in the region. The total economic impact of these investments is projected to exceed 20 trillion yen by 2030. Local governments are actively seeking further investment, and initiatives are underway to enhance workforce training in semiconductor technology. A long-term plan to develop a network of industrial and research hubs in Kyushu has been established, inspired by Taiwan's semiconductor ecosystem.
Nikkei Asia: https://asia.nikkei.com/Business/Tech/Semiconductors/Japan-Silicon-Island-investments-top-30bn-ahead-of-TSMC-opening
▶ Japan’s Sumitomo Mitsui Offers New Hires Sure Path to U.S., U.K. Branches, with 40％ of Bank Revenue Already Coming from Abroad
30 Oct, 2024
Sumitomo Mitsui Banking Corp. will start a program in April 2025 for select new hires, guaranteeing overseas assignments in New York or London by their second year. Applicants must have strong English skills, with a minimum TOEFL score of 105. New hires will need to work a year in Japan to obtain a visa before relocating. The initiative aims to develop talent for international financial operations, as nearly 40% of the bank's revenue comes from abroad. While other major Japanese banks like MUFG and Mizuho are also seeking to expand overseas, they do not offer guaranteed placements.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20241030-219450/
▶ Toyota 1st-half global output drops 7% on China, 1st fall in 4 years
30 Oct, 2024
Toyota Motor Corp. reported a 7.0 percent decline in global production in the April-September period, marking its first drop in four years. The company produced 4.71 million vehicles, down from 5.06 million, due to a quality scandal and weaker sales in China. Domestic output fell 9.4 percent to 1.53 million vehicles, affected by halted production of certain models and a Prius recall. Internationally, production decreased by 5.8 percent to 3.17 million, with China seeing a significant 17.1 percent drop. Global sales fell 2.8 percent to 5.03 million vehicles, driven by a decline in Japan and overseas markets. However, EV sales increased by 32.5 percent to 78,178 units, even as Toyota cut its 2026 EV production target by 30 percent. Overall, Japan's eight major automakers experienced a 6.0 percent decline in production, with only Suzuki and Mazda avoiding decreases.
▶ SoftBank to open startup campus in Nagoya, Japan's industrial hub
30 Oct, 2024
Station Ai, a major startup support center established by SoftBank in central Aichi prefecture, officially opens on Thursday. The facility hosts around 500 startups and 200 supporting entities, including Toyota, and aims to leverage Aichi's strong manufacturing base to foster innovation in the automotive sector and beyond. Covering 23,000 square meters, Station Ai offers offices, labs, and amenities, providing support for funding and business development. Despite challenges in Japan's startup environment, the facility aims to double its startup count to 1,000 in five years and attract foreign participants. The Aichi government, which owns Station Ai, envisions it as a hub for collaboration between established companies and startups, particularly in areas like electrification and autonomous driving.
Nikkei Asia: https://asia.nikkei.com/Business/Startups/SoftBank-to-open-startup-campus-in-Nagoya-Japan-s-industrial-hub
▶ Toyota, NTT to team up on AI-aided driving to curb accidents
31 Oct, 2024
Toyota Motor Corp. and Nippon Telegraph and Telephone Corp. announced their collaboration to develop an AI-supported driving software platform aimed at reducing vehicle accidents. They plan to invest a combined 500 billion yen ($3.3 billion) in the project, with research and development starting next year and practical implementation targeted for around 2028, followed by widespread adoption in 2030. Toyota President Koji Sato emphasized the importance of anticipating accident risks to achieve a "society with zero traffic accidents." The AI technology will collect and analyze driving data to prevent collisions. To handle the large amounts of data required, the companies will utilize NTT's Innovative Optical and Wireless Network communication platform. NTT President Akira Shimada highlighted the goal of making cars "smarter and safer." Both companies have been developing connected cars with advanced telecommunication systems since 2017. Sato noted that Toyota will take a gradual approach to enhance driving assistance systems as they advance self-driving technology.
The EU-Japan Centre currently produces 5 newsletters :
Joint venture established in 1987 by the European Commission (DG GROW) and the Japanese Government (METI) for promoting all forms of industrial, trade and investment cooperation between the EU and Japan.
The EU-Japan Centre’s activities are subject to the allocation of a Grant Agreement by the European Commission for 2024-2026
