JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 07-10 April 2026
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
Weekly Japanese Economic and Business News (07 - 10 April, 2026)
Outline
1. Economic News
▶ Japan Diet to enact record 122.31 tril. yen budget for FY 2026 after delay
07 Apr, 2026
Photo source: Kyodo
Japan’s parliament is set to pass a record ¥122.31 trillion ($766 billion) budget for FY2026 after a rare delay, missing the fiscal year start for the first time in 11 years. The expansionary budget includes rising welfare and record defense spending, but relies heavily on new debt and lacks measures to address rising energy costs. The delay highlights political gridlock, although the ruling party is expected to secure passage with limited opposition support.
Kyodo: https://english.kyodonews.net/articles/-/73711
▶ China solar panel makers hike Japan prices on materials costs, rebate cuts
08 Apr, 2026
Photo Source: Reuters
Major Chinese solar panel makers, including JinkoSolar, LONGi Green Energy Technology, Trina Solar, and Canadian Solar, have raised prices in Japan due to higher raw material costs and the end of Chinese export subsidies. Since Japan relies on China for over 80% of its solar panels, these increases could slow renewable energy adoption. Rising costs of materials like silver, silicon, and copper—along with higher shipping costs—are also contributing to the price hikes.
Nikkei Asia: https://asia.nikkei.com/economy/inflation/china-solar-panel-makers-hike-japan-prices-on-materials-costs-rebate-cuts
▶ Japan corporate bankruptcies hit 12-year high on rising prices, wages
09 Apr, 2026
Photo Source: Rie Ishii/Nikkei
Japan recorded 10,505 corporate bankruptcies in fiscal 2025 (+4% year-on-year), the highest in 12 years, mainly affecting small businesses. Rising costs—especially labor, wages, interest rates, and raw materials—put increasing pressure on companies. While the number of bankruptcies rose, total liabilities fell due to fewer large-scale failures. Labor shortages were a major factor, hitting a record high in related bankruptcies. Higher borrowing costs and inflation (including from the weak yen) also contributed. Sectors like restaurants and transportation were notably impacted, with concerns that prolonged geopolitical tensions (e.g., Iran-related turmoil) could further increase bankruptcies, especially in transportation.
Nikkei Asia: https://asia.nikkei.com/economy/japan-corporate-bankruptcies-hit-12-year-high-on-rising-prices-wages
▶ Japan to tighten restrictions on metal, plastic waste exports
10 Apr, 2026
Photo Source: Kyodo
Japan plans to tighten regulations on exports of metal scrap and plastic waste to promote domestic recycling and prevent pollution. Exports will generally require government approval, and scrapyard operators must meet stricter standards and obtain permits. The move follows issues like fires, contamination, and poor waste management. Japan also aims to strengthen disaster waste processing systems, requiring municipalities to prepare plans and coordinate with others for handling debris and landfill disposal.
Nikkei Asia: https://asia.nikkei.com/spotlight/environment/japan-to-tighten-restrictions-on-metal-plastic-waste-exports
--------------------------------------------------------------------------------------------------------------------------------------
2. Business News
▶ JOGMEC Signs a Memorandum of Cooperation with PETRONAS
06 Apr, 2026
Photo Source: JOGMEC
Malaysia, a leading LNG supplier, has been a key partner for Japan’s energy security, with PETRONAS providing reliable LNG since the 1980s. PETRONAS is also active in the energy transition, supporting Japan’s decarbonization goals. JOGMEC and PETRONAS have collaborated on carbon neutrality, CCS, hydrogen, CO₂ cross-border transport, and methane emissions reduction. A new memorandum of cooperation expands this partnership to ensure stable LNG supply, advance low-carbon technologies, and strengthen greenhouse gas management across the energy supply chain, supporting Japan’s energy security and carbon neutrality efforts in Asia.
JOGMEC: https://www.jogmec.go.jp/english/news/release/release_00443.html
▶Toyota roars past BYD in Japan EV sales with $6,000 more in subsidies
07 Apr, 2026
Image: Nikkei
Japan’s EV sales hit a record in early 2026, led by Toyota Motor, which surged ahead thanks to higher government subsidies for its models like the bZ4X. A widening subsidy gap—up to about 1 million yen—has hurt competitors such as BYD, whose support was reduced. Subsidy policies favoring vehicles with Japan-linked battery supply chains are reshaping competition, boosting domestic makers and disadvantaging some foreign brands.
▶ GMO Opens R&D Base for Humanoid Robots
08 Apr, 2026
Photo Source: JIJI
GMO Internet Group has opened a humanoid robot R&D lab, the GMO Humanoid Lab, at its Tokyo headquarters. The lab currently houses 10 human-shaped robots and plans to expand to 100 robots and 100 robot engineers by October. Robots will be tested for tasks like carrying loads and lent to companies considering their use. The move comes amid intensifying global competition in humanoid robot development, especially in the U.S. and China.
JIJI: https://jen.jiji.com/jc/eng?g=ind&k=2026040800773
▶ Japan's Itochu and Sankyu to buy Singapore plant repair firm SWTS
09 Apr, 2026
Photo Source: Pixta
Itochu and Sankyu will jointly acquire a 50% stake each in SWTS, with the deal expected to close in May. SWTS, Singapore’s largest independent maintenance firm, services refineries and power plants across Asia and counts major clients like Exxon Mobil and Shell.
The partnership aims to expand maintenance services in Southeast Asia and the Middle East, improve repair efficiency by localizing work, and tap into growing demand from sectors like semiconductors and data centers.
Nikkei Asia: https://asia.nikkei.com/business/business-deals/japan-s-itochu-and-sankyu-to-buy-singapore-plant-repair-firm-swts
▶ Japan's Fujitsu, NEC and NRI among Asian software stocks hit by war, AI shift
09 Apr,2026
Nikkei montage/Source photos by Getty Images
Asian software stocks, including Fujitsu, NEC, and Nomura Research Institute, have fallen by around 20% this year after strong gains in 2025. The decline is driven by rapid advances in AI, particularly developments by Anthropic, which have raised concerns about potential displacement of software services, as well as reduced investor confidence and rising costs linked to geopolitical tensions such as the Iran conflict. Despite these challenges, companies argue that AI will enhance productivity rather than replace demand, and that long-term IT investment demand remains strong. Upcoming earnings reports and mid-term business plans will be crucial in restoring investor confidence.
Nikkei Asia: https://asia.nikkei.com/business/markets/japan-s-fujitsu-nec-and-nri-among-asian-software-stocks-hit-by-war-ai-shift
▶ First-time Collaboration between MOL and Shell on an Innovative Book and Claim Initiative for Marine Decarbonization
09 Apr, 2026
Source: Mitsui O.S.K.Lines (MOL
Mitsui O.S.K. Lines has partnered with Shell Trading Rotterdam to implement a Book and Claim model that converts low-carbon fuel use on third-party vessels into Environmental Attribute Certificates (EACs). Shell facilitated the fuel switch from conventional VLSFO to lower-carbon FAME biofuel and allocated the resulting GHG emission reductions to MOL. MOL then verified these reductions and offered them as EACs to its customers under its BLUE ACTION NET-ZERO ALLIANCE program. This initiative demonstrates a credible method to provide low-carbon maritime transport solutions and supports MOL’s carbon insetting strategy under its BLUE ACTION 2035 Phase 2 environmental vision.
MOL: https://www.mol.co.jp/en/pr/2026/26028.html
▶ Asia PVC market in turmoil as Hormuz closure hits major Taiwan supplier
09 Apr, 2026
Photo Source: Shin-Etsu Chemical
The Middle East conflict and disruption of the Strait of Hormuz are causing supply issues in Asia’s PVC market, especially affecting Formosa Plastics. Delays in raw materials have forced production cuts and postponed pricing, tightening supply. Alternatives like China may not fully offset shortages, while rising demand in India adds pressure. As a result, PVC prices are expected to increase significantly across the region.
Nikkei Asia: https://asia.nikkei.com/business/materials/asia-pvc-market-in-turmoil-as-hormuz-closure-hits-major-taiwan-supplier
▶ Mitsubishi Corp. opens free trial data center to boost AI deployment
09 Apr, 2026
Photo Source: Akitoshi Sugiura/Nikkei
Mitsubishi Corp. opened a free testing facility, the Digital Realty Innovation Lab, at its Inzai data center, allowing companies to test server performance and cooling for up to six months at no cost. Operated with Digital Realty Trust, it supports AI servers with both air and liquid cooling, targeting automakers, AI startups, and other non-IT companies. Mitsubishi also opened another center in Inzai, bringing its total in Japan to nine, with plans for further expansion in Kawasaki.
▶ Japan's JFE Engineering to build waste-to-energy plants in India
10 Apr, 2026
Photo Source: JFE Engineering
JFE Engineering is expanding into India’s waste management sector by partnering with Antony Waste Handling Cell to build and operate two waste-to-energy plants in Andhra Pradesh. The facilities, set to launch in 2028, will process trash into electricity. The move aligns with India’s shift from landfill disposal to incineration and is part of JFE’s strategy to grow its overseas business, where it currently lags competitors. By expanding in India, the company aims to boost its environmental segment profits and strengthen its global presence.
Nikkei Asia: https://asia.nikkei.com/spotlight/environment/japan-s-jfe-engineering-to-build-waste-to-energy-plants-in-india
▶ Sumitomo Electric to boost tungsten output 50%, reducing China dependence
10 Apr, 2026
Photo Source: Sumitomo Electric Industries
Sumitomo Electric Industries will invest 15.9 billion yen to build a new tungsten plant in Japan, aiming to cut reliance on Chinese imports. The facility will boost production capacity by 50% and support growing demand from semiconductors and cutting tools. Backed by government subsidies, the project will also strengthen recycling efforts to recover tungsten domestically, reducing dependence on China for raw materials.
Nikkei Asia: https://asia.nikkei.com/business/companies/sumitomo-electric-to-boost-tungsten-output-50-reducing-china-dependence
▶ Mitsubishi to receive $2.4bn Japan state loan for US gas supplier deal
10 Apr, 2026
Photo Source: Reuters
Japan Bank for International Cooperation will provide a $2.38 billion loan to support Mitsubishi Corporation’s $7.5 billion acquisition of Aethon Energy, in one of its largest-ever deals. The move aims to strengthen Japan’s energy security by securing U.S. natural gas supplies, some of which will be exported to Japan. It also helps Mitsubishi build a full gas supply chain, while reflecting Japan’s broader push to diversify energy sources amid geopolitical risks.
Nikkei Asia: https://asia.nikkei.com/business/energy/mitsubishi-to-receive-2.4bn-japan-state-loan-for-us-gas-supplier-deal
Published: April 2026
EU-Japan Centre for Industrial Cooperation
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.
Copyright © 2026 EU-Japan Centre