Sanae Takaichi boosts Japan-US ties vows stronger defence plan

Japan’s new Prime Minister Sanae Takaichi vowed on Friday to strengthen Japan’s alliance with the United States and take a tougher stance on China, North Korea, and Russia. Delivering her first policy speech before parliament in Tokyo, Takaichi promised to bring Japan-US relations to “new heights” during President Donald Trump’s upcoming visit to Japan.

The announcement came just three days before Trump’s arrival, as he continues urging allies like Japan to increase military spending. Takaichi confirmed that Japan will allocate 2% of its GDP to defence this fiscal year — reaching the government’s long-term target two years ahead of schedule.

Strengthening the US Alliance and National Defence

Drawing inspiration from her political idol Margaret Thatcher, Takaichi emphasized the need for a “relationship of trust” with Washington. She said her government would “elevate the Japan-US partnership to new heights,” underscoring shared concerns about security threats in the region.

“The military activities of China, North Korea, and Russia have become a grave concern,” she said, warning that “the free, open, and stable international order we have grown accustomed to is being profoundly shaken by shifting power dynamics.”

China’s foreign ministry quickly criticized Japan’s growing defence budget and relaxed arms export rules, suggesting that such steps “raise serious doubts” about Japan’s commitment to a purely defensive policy.

Immigration, Labour Shortages, and Social Balance

Beyond defence, Takaichi faces major domestic challenges — including a stagnating economy, an ageing population, and a labour shortage. While she acknowledged the need for foreign workers to fill labour gaps, she also addressed rising public unease about immigration.

“Some illegal activities and rule violations by certain foreigners have created situations where the public feels uneasy,” she noted. “While we firmly reject xenophobia, the government will act decisively against such behaviour and ensure compliance with existing laws.”

Takaichi appointed Kimi Onoda as the new minister responsible for building a “society of harmonious coexistence with foreign nationals,” a move aimed at improving integration while maintaining social order. However, misinformation has circulated online claiming Onoda was appointed as “minister for mass deportations,” which the government dismissed as false.

Tackling Inflation and Economic Pressures

Addressing Japan’s rising inflation and cost-of-living crisis, Takaichi pledged to ease financial burdens on households. While she offered few details about her upcoming economic package, she reaffirmed that supporting citizens amid inflation would be a top priority.

Recent data showed consumer prices rising 2.9% in September, up from 2.7% in August. Economists say inflationary pressure remains a key concern for households.

Takaichi, who has long supported increased government spending and looser monetary policy, has seen her appointment boost investor confidence, pushing Japanese stocks to record highs. Still, she noted that decisions on monetary policy will remain under the control of the Bank of Japan (BoJ), which has been cautiously normalising its ultra-loose stance.

Analysts warn that US tariffs could impact Japan’s export-driven economy. “The BoJ is concerned about the effects of US tariffs on corporate profits and wage growth,” said Abhijit Surya of Capital Economics.

A Balancing Act of Diplomacy and Domestic Policy

As Japan’s first female prime minister, Sanae Takaichi faces the dual challenge of reinforcing Japan’s global position while managing domestic economic strains. With strong poll ratings and promises of reform, her leadership marks a new chapter for Japan — one that blends assertive diplomacy with an urgent focus on stability at home.