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Japan Today
19-07-2025
- Business
- Japan Today
Japan set to meet 2% defense target, but future hikes uncertain
By Keita Nakamura Japan is on track to achieve its target of boosting defense spending to 2 percent of gross domestic product in the next two years, but the real challenge -- whether to go beyond that level -- may come after Sunday's House of Councillors election. With the ruling bloc at risk of losing its upper house majority, Prime Minister Shigeru Ishiba's already flagging political base could complicate long-term buildup plans, despite U.S. President Donald Trump's push for allies to shoulder more defense costs. Ishiba's ruling coalition no longer controls the more powerful House of Representatives. A defeat in the upcoming election could make it virtually impossible for Japan to further increase its defense budget, as only a few opposition parties support the move. Defense Minister Gen Nakatani said, "Nothing has been determined at all" regarding Japan's defense budget for fiscal 2028 or later, despite the country's expected exposure to direct or tacit pressure from the United States to spend more than 2 percent of its GDP. In 2022, Japan decided to allocate 43 trillion yen ($289 billion) over five years through fiscal 2027 to reach the 2 percent benchmark, aligning with the then-standard among NATO members, amid growing security threats from China, North Korea and Russia. The amount includes expenses for security-related "complementary initiatives," such as research and development, public infrastructure construction and the coast guard, which are vital for bolstering Japan's defense capabilities. For decades, Japan capped its annual defense budget at around 1 percent of GDP -- roughly 5 trillion yen -- reflecting its postwar pacifist stance under the war-renouncing Constitution, while maintaining its security alliance with the United States. Nakatani said the initial defense budget for fiscal 2025, including related outlays, is set to total 9.9 trillion yen, equivalent to 1.8 percent of GDP three years earlier -- evidence, he said, of steady progress toward the government's target. To keep the 43 trillion yen outlay on track, the government has approved hikes in income, corporate and tobacco taxes, despite its debt burden topping 1,300 trillion yen -- more than twice the size of the economy. Corporate and tobacco tax hikes are set for April 2026, but the government has yet to finalize the timing of the income tax increase, even after Ishiba took over as prime minister from Fumio Kishida in October. Ishiba's Liberal Democratic Party has pledged in its election campaign to "adamantly defend our territory and citizens by fundamentally reinforcing defense capabilities," citing China's military buildup and North Korea's missiles as serious threats. Major opposition parties, including the Constitutional Democratic Party of Japan -- led by former Prime Minister Yoshihiko Noda -- and the Japan Innovation Party, also support strengthening the nation's defense capabilities. Noda, known as a fiscal hawk, has voiced opposition to raising taxes to cover increased defense spending, arguing the 43 trillion yen target lacks a solid basis. Rather than proposing alternative funding sources, he has pledged a consumption tax cut to support the economy. The LDP's junior coalition partner, Komeito, along with opposition forces -- the Democratic Party for the People, Sanseito and the Conservative Party of Japan -- have made no clear reference to how the increased defense budget would be funded. Among other opposition parties, Reiwa Shinsengumi, the Japanese Communist Party and the Social Democratic Party have all opposed expanding defense spending, calling on the government to uphold the Constitution. Masumi Ishizuki, general manager of the Policy and Macro Environment Research Department at the Dai-ichi Life Research Institute, said the defense spending plan is unlikely to change significantly, regardless of the post-election government. Ishizuki, meanwhile, pointed out that Trump, who took office in January with his "America First" banner, has been adding pressure on allies, prodding NATO countries to set a new target of investing 5 percent of GDP for defense and related expenses by 2035. Pentagon spokesman Sean Parnell has also called on U.S. allies in Asia to pursue defense goals equivalent to those of NATO members. According to a diplomatic source, Washington has already asked Japan to spend 3.5 percent of its GDP on defense. Securing sufficient financial resources to disburse such a large amount could be a tough task if the upper house election weakens the Ishiba government, as his ruling coalition is on the verge of losing its majority in the chamber. Hirohito Ogi, a senior research fellow at the Institute of Geoeconomics at the International House of Japan, said the prime minister's limited influence could make Finance Ministry bureaucrats hesitant to cooperate in increasing defense spending. If the political leader has a solid foundation, the ministry in charge of the national budget would have no choice but to cooperate, Ogi said, adding prospects for future defense spending "depend on whether the Prime Minister's Office is strong or not." © KYODO


Japan Today
23-06-2025
- Business
- Japan Today
China's 'panda diplomacy' in focus at key time in relations with Japan
Giant panda Yuihin eats bamboo at Adventure World zoo and amusement park in Shirahama, Wakayama Prefecture, on May 24. By Keita Nakamura China's "panda diplomacy" is drawing renewed attention with Japan's first zero giant panda moment in over half a century approaching, amid an intensifying Sino-U.S. rivalry that could provide an incentive for Beijing to stabilize its oft-strained ties with Tokyo. China's decisions on leasing the bear species abroad are usually revealed in high-level bilateral talks. Foreign affairs experts say a new loan may be announced late fall this year during a possible visit by a Chinese political leader to Japan, though they doubt the gesture will carry the same diplomatic weight as it once did. Since the first black-and-white animal arrived in Japan in 1972 to commemorate the normalization of diplomatic ties, Chinese pandas have become beloved by the Japanese public, bringing major economic benefits as tourist attractions. The two governments have embraced the bamboo-munching iconic animal's role as a symbol of friendship. China last sent pandas to Japan in February 2011, based on a deal struck at a meeting between then Prime Minister Yasuo Fukuda and Chinese President Hu Jintao in Tokyo in May 2008. Currently, Japan is home to six pandas, all of which were born domestically but owned by China. Four at the Adventure World leisure complex in the western Japanese town of Shirahama will be handed over to China next Saturday, ahead of the expiration of their loan period in August. The other two at Tokyo's Ueno Zoological Gardens are also due to return to China next February. Emi Mifune, a Komazawa University professor well-versed in Chinese diplomacy, believes China will rent out new pandas instead to Japan as Beijing is "in the middle of an escalating confrontation with the United States and needs to mend relations" with Tokyo. China's relationship with the United States has been cooling in recent years, as Washington maintains a hard-line stance toward China, renewed by tariff-fueled trade salvos by President Donald Trump who returned to the White House in January. She also said Beijing's agreement with Tokyo in late May to begin procedures to resume importing Japanese marine products indicates that China is making visible efforts to improve the relationship, something that a new panda allocation would support. China imposed a ban on Japanese seafood imports in August 2023 in opposition to the release of treated radioactive wastewater from the crippled Fukushima Daiichi nuclear power plant into the sea. The Asian neighbors have long been at loggerheads over historical and territorial issues, including a dispute over the Tokyo-controlled, Beijing-claimed Senkaku Islands in the East China Sea. China's increasing military activities in the Indo-Pacific region have only stoked tensions. China has long used the panda as a tool of diplomatic outreach and goodwill toward various nations, including the United States, Russia, Australia and South Korea among others. With an eye on fostering "an atmosphere of improving bilateral ties," China may announce a new panda loan, perhaps during the next meeting between Japanese Prime Minister Shigeru Ishiba and Chinese Premier Li Qiang, Mifune speculated. Japan hopes to host a summit with China and South Korea later this year in Tokyo, and Ishiba-Li talks are expected to take place on the sidelines. During a China trip as leader of a business delegation in early June, Yohei Kono, the former Japanese House of Representatives speaker, met with Li and floated the idea of the high-ranking Chinese official bringing pandas with him to Japan. While calling on Japan to promote cooperation to address "challenges posed to the world," such as "U.S. tariff measures," Li told Kono he attaches "great importance" to the panda request as "an important proposal," according to a delegation member. However, on Sept. 3 China will mark 80 years since it declared victory in its 1937-1945 War of Resistance Against Japanese Aggression, making diplomatic outreach in the approaching period challenging, Mifune said. Mifune also pointed out that China may be unwilling to send pandas to Adventure World in Shirahama during the tenure of the town's pro-Taiwan Mayor Yasuhiro Oe, who took office in May last year in a move that might have led to the four panda's repatriation ahead of schedule. Oe, a former House of Councillors member, has deep ties with Taiwan, with which the Japanese government only maintains unofficial relations. China sees the self-ruled democratic island as a breakaway province to be reunified with the mainland, by force if necessary. Adventure World has engaged in a collaborative project to breed the animal, now classified as "vulnerable" on the global list of at-risk species, with China since 1994. Masaki Ienaga, a professor at Tokyo Woman's Christian University, said that China has used pandas not as a tool to demand other nations "give ground" on bilateral issues, but as a signal that the attitude toward Beijing in the recipient nation is "right and friendly." "Even if China were to give Japan some pandas, it would not mean that Japan has to do a lot of things for it," but how the Japanese public reacts to the arrival of new pandas will matter to Beijing, he said. Ienaga is also skeptical that a new panda loan will have any tangible impact on the Japanese government's diplomatic posture toward China or Japanese public opinion about its neighbor. "Japanese society no longer really looks at pandas through a political lens," as opposed to in 1972 when the animals were accepted "genuinely as a symbol of friendship," Ienaga added. © KYODO


Kyodo News
23-06-2025
- Business
- Kyodo News
FOCUS: China's "panda diplomacy" in focus as zero moment may come in Japan
By Keita Nakamura, KYODO NEWS - 4 hours ago - 09:38 | World, All, Japan China's "panda diplomacy" is drawing renewed attention with Japan's first zero giant panda moment in over half a century approaching, amid an intensifying Sino-U.S. rivalry that could provide an incentive for Beijing to stabilize its oft-strained ties with Tokyo. China's decisions on leasing the bear species abroad are usually revealed in high-level bilateral talks. Foreign affairs experts say a new loan may be announced late fall this year during a possible visit by a Chinese political leader to Japan, though they doubt the gesture will carry the same diplomatic weight as it once did. Since the first black-and-white animal arrived in Japan in 1972 to commemorate the normalization of diplomatic ties, Chinese pandas have become beloved by the Japanese public, bringing major economic benefits as tourist attractions. The two governments have embraced the bamboo-munching iconic animal's role as a symbol of friendship. China last sent pandas to Japan in February 2011, based on a deal struck at a meeting between then Prime Minister Yasuo Fukuda and Chinese President Hu Jintao in Tokyo in May 2008. Currently, Japan is home to six pandas, all of which were born domestically but owned by China. Four at the Adventure World leisure complex in the western Japanese town of Shirahama will be handed over to China next Saturday, ahead of the expiration of their loan period in August. The other two at Tokyo's Ueno Zoological Gardens are also due to return to China next February. Emi Mifune, a Komazawa University professor well-versed in Chinese diplomacy, believes China will rent out new pandas instead to Japan as Beijing is "in the middle of an escalating confrontation with the United States and needs to mend relations" with Tokyo. China's relationship with the United States has been cooling in recent years, as Washington maintains a hard-line stance toward China, renewed by tariff-fueled trade salvos by President Donald Trump who returned to the White House in January. She also said Beijing's agreement with Tokyo in late May to begin procedures to resume importing Japanese marine products indicates that China is making visible efforts to improve the relationship, something that a new panda allocation would support. China imposed a ban on Japanese seafood imports in August 2023 in opposition to the release of treated radioactive wastewater from the crippled Fukushima Daiichi nuclear power plant into the sea. The Asian neighbors have long been at loggerheads over historical and territorial issues, including a dispute over the Tokyo-controlled, Beijing-claimed Senkaku Islands in the East China Sea. China's increasing military activities in the Indo-Pacific region have only stoked tensions. China has long used the panda as a tool of diplomatic outreach and goodwill toward various nations, including the United States, Russia, Australia and South Korea among others. With an eye on fostering "an atmosphere of improving bilateral ties," China may announce a new panda loan, perhaps during the next meeting between Japanese Prime Minister Shigeru Ishiba and Chinese Premier Li Qiang, Mifune speculated. Japan hopes to host a summit with China and South Korea later this year in Tokyo, and Ishiba-Li talks are expected to take place on the sidelines. During a China trip as leader of a business delegation in early June, Yohei Kono, the former Japanese House of Representatives speaker, met with Li and floated the idea of the high-ranking Chinese official bringing pandas with him to Japan. While calling on Japan to promote cooperation to address "challenges posed to the world," such as "U.S. tariff measures," Li told Kono he attaches "great importance" to the panda request as "an important proposal," according to a delegation member. However, on Sept. 3 China will mark 80 years since it declared victory in its 1937-1945 War of Resistance Against Japanese Aggression, making diplomatic outreach in the approaching period challenging, Mifune said. Mifune also pointed out that China may be unwilling to send pandas to Adventure World in Shirahama during the tenure of the town's pro-Taiwan Mayor Yasuhiro Oe, who took office in May last year in a move that might have led to the four panda's repatriation ahead of schedule. Oe, a former House of Councillors member, has deep ties with Taiwan, with which the Japanese government only maintains unofficial relations. China sees the self-ruled democratic island as a breakaway province to be reunified with the mainland, by force if necessary. Adventure World has engaged in a collaborative project to breed the animal, now classified as "vulnerable" on the global list of at-risk species, with China since 1994. Masaki Ienaga, a professor at Tokyo Woman's Christian University, said that China has used pandas not as a tool to demand other nations "give ground" on bilateral issues, but as a signal that the attitude toward Beijing in the recipient nation is "right and friendly." "Even if China were to give Japan some pandas, it would not mean that Japan has to do a lot of things for it," but how the Japanese public reacts to the arrival of new pandas will matter to Beijing, he said. Ienaga is also skeptical that a new panda loan will have any tangible impact on the Japanese government's diplomatic posture toward China or Japanese public opinion about its neighbor. "Japanese society no longer really looks at pandas through a political lens," as opposed to in 1972 when the animals were accepted "genuinely as a symbol of friendship," Ienaga added. Related coverage: All 4 giant pandas at western Japan zoo to return to China in June Giant panda Eimei dies in China after repatriation from Japan


Kyodo News
23-06-2025
- Business
- Kyodo News
FOCUS: China's "panda diplomacy" in focus as zero moment may come in Japan
By Keita Nakamura, KYODO NEWS - 6 minutes ago - 09:38 | World, All, Japan China's "panda diplomacy" is drawing renewed attention with Japan's first zero giant panda moment in over half a century approaching, amid an intensifying Sino-U.S. rivalry that could provide an incentive for Beijing to stabilize its oft-strained ties with Tokyo. China's decisions on leasing the bear species abroad are usually revealed in high-level bilateral talks. Foreign affairs experts say a new loan may be announced late fall this year during a possible visit by a Chinese political leader to Japan, though they doubt the gesture will carry the same diplomatic weight as it once did. Since the first black-and-white animal arrived in Japan in 1972 to commemorate the normalization of diplomatic ties, Chinese pandas have become beloved by the Japanese public, bringing major economic benefits as tourist attractions. The two governments have embraced the bamboo-munching iconic animal's role as a symbol of friendship. China last sent pandas to Japan in February 2011, based on a deal struck at a meeting between then Prime Minister Yasuo Fukuda and Chinese President Hu Jintao in Tokyo in May 2008. Currently, Japan is home to six pandas, all of which were born domestically but owned by China. Four at the Adventure World leisure complex in the western Japanese town of Shirahama will be handed over to China next Saturday, ahead of the expiration of their loan period in August. The other two at Tokyo's Ueno Zoological Gardens are also due to return to China next February. Emi Mifune, a Komazawa University professor well-versed in Chinese diplomacy, believes China will rent out new pandas instead to Japan as Beijing is "in the middle of an escalating confrontation with the United States and needs to mend relations" with Tokyo. China's relationship with the United States has been cooling in recent years, as Washington maintains a hard-line stance toward China, renewed by tariff-fueled trade salvos by President Donald Trump who returned to the White House in January. She also said Beijing's agreement with Tokyo in late May to begin procedures to resume importing Japanese marine products indicates that China is making visible efforts to improve the relationship, something that a new panda allocation would support. China imposed a ban on Japanese seafood imports in August 2023 in opposition to the release of treated radioactive wastewater from the crippled Fukushima Daiichi nuclear power plant into the sea. The Asian neighbors have long been at loggerheads over historical and territorial issues, including a dispute over the Tokyo-controlled, Beijing-claimed Senkaku Islands in the East China Sea. China's increasing military activities in the Indo-Pacific region have only stoked tensions. China has long used the panda as a tool of diplomatic outreach and goodwill toward various nations, including the United States, Russia, Australia and South Korea among others. With an eye on fostering "an atmosphere of improving bilateral ties," China may announce a new panda loan, perhaps during the next meeting between Japanese Prime Minister Shigeru Ishiba and Chinese Premier Li Qiang, Mifune speculated. Japan hopes to host a summit with China and South Korea later this year in Tokyo, and Ishiba-Li talks are expected to take place on the sidelines. During a China trip as leader of a business delegation in early June, Yohei Kono, the former Japanese House of Representatives speaker, met with Li and floated the idea of the high-ranking Chinese official bringing pandas with him to Japan. While calling on Japan to promote cooperation to address "challenges posed to the world," such as "U.S. tariff measures," Li told Kono he attaches "great importance" to the panda request as "an important proposal," according to a delegation member. However, on Sept. 3 China will mark 80 years since it declared victory in its 1937-1945 War of Resistance Against Japanese Aggression, making diplomatic outreach in the approaching period challenging, Mifune said. Mifune also pointed out that China may be unwilling to send pandas to Adventure World in Shirahama during the tenure of the town's pro-Taiwan Mayor Yasuhiro Oe, who took office in May last year in a move that might have led to the four panda's repatriation ahead of schedule. Oe, a former House of Councillors member, has deep ties with Taiwan, with which the Japanese government only maintains unofficial relations. China sees the self-ruled democratic island as a breakaway province to be reunified with the mainland, by force if necessary. Adventure World has engaged in a collaborative project to breed the animal, now classified as "vulnerable" on the global list of at-risk species, with China since 1994. Masaki Ienaga, a professor at Tokyo Woman's Christian University, said that China has used pandas not as a tool to demand other nations "give ground" on bilateral issues, but as a signal that the attitude toward Beijing in the recipient nation is "right and friendly." "Even if China were to give Japan some pandas, it would not mean that Japan has to do a lot of things for it," but how the Japanese public reacts to the arrival of new pandas will matter to Beijing, he said. Ienaga is also skeptical that a new panda loan will have any tangible impact on the Japanese government's diplomatic posture toward China or Japanese public opinion about its neighbor. "Japanese society no longer really looks at pandas through a political lens," as opposed to in 1972 when the animals were accepted "genuinely as a symbol of friendship," Ienaga added. Related coverage: All 4 giant pandas at western Japan zoo to return to China in June Giant panda Eimei dies in China after repatriation from Japan