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The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
▶ Foreign population in 10 Japan prefectures more than doubles in decade
21 Nov, 2025
Photo Source: Kyodo
Foreign resident populations have more than doubled in 10 Japanese prefectures over the past decade, with Kumamoto showing the fastest growth—over tripling—boosted partly by the arrival of TSMC’s new plant. Hokkaido, Okinawa, and other Kyushu prefectures also saw large increases. All 47 prefectures recorded growth in foreign residents, reaching 1.78 times the 2015 level, even as many regions continue to lose young Japanese to major cities. With depopulation worsening outside urban areas, non-Japanese residents are playing an increasingly important role in sustaining local communities and filling labor shortages.
Kyodo : https://english.kyodonews.net/articles/-/65457
▶ Japan's Takaichi and India's Modi agree on AI, chip cooperation
24 Nov, 2025
Photo Source: Kyodo
Japan’s Prime Minister Sanae Takaichi and India’s Narendra Modi agreed at the G20 summit to strengthen cooperation in AI, semiconductors, and other key technologies, while supporting a free and open Indo-Pacific. Takaichi reaffirmed Japan’s plan to boost 10 trillion yen in private investment in India over the next decade. Deepening ties with India is part of Japan’s strategy to counter China’s influence. India’s growing economy and importance in semiconductor and critical mineral supply chains make it a key partner; bilateral trade reached 3.7 trillion yen in fiscal 2024.
▶ "Zero-click" searches on rise due to AI summaries: Japan survey
24 Nov, 2025
Photo Source: Kyodo
A Japanese survey shows that over 60% of Google searches now result in zero clicks, as users increasingly rely on information summarized by generative AI at the top of search results. This shift is reducing website traffic, threatening advertising revenue and customer acquisition.
In September, Japan saw 6.18 billion Google searches, but only 2.26 billion led to site visits. Conversational AI tools like ChatGPT are also changing search behavior, with referrals to Note Inc.’s platform from such services tripling between January and August. Specialized content remains the most likely to attract clicks.
Kyodo: https://english.kyodonews.net/articles/-/65599
▶ Japan chip plants to face cybersecurity mandate as condition for subsidies
24 Nov, 2025
Photo Source: Yuki Nakao/Nikkei
Japan’s Ministry of Economy, Trade and Industry will require semiconductor plants to implement strict cybersecurity measures as a condition for receiving subsidies starting in fiscal 2026. The move follows rising global cyberattacks and aims to protect critical supply chains. New guidelines will cover chipmakers, equipment suppliers, and materials manufacturers, requiring tighter access control, restrictions on devices brought into facilities, designated incident-response leaders, and segmented production lines to prevent virus spread. High-profile past attacks—such as the 2018 TSMC virus incident—underscore the risks. Japan, which plans to provide over 10 trillion yen in support for its chip sector, seeks to safeguard operations in an increasingly targeted industry.
▶ Govt Plans 8％ Corporate Capital Investment Tax Credit
25 Nov, 2025
Photo Source: Yomiuri
Japan plans to introduce a new tax credit in fiscal 2026 allowing companies to deduct 8% of capital investment from corporate taxes, or 15% for firms hurt by U.S. tariff policies. The five-year measure is expected to provide ¥500 billion in annual tax relief and applies to investments with an expected return above 15%, covering machinery, software, and factories. About 80% of the investments are expected to support Japan’s 17 strategic sectors, including AI, semiconductors, shipbuilding, and quantum technology. Companies may alternatively opt for full first-year depreciation to improve cash flow. The move responds to global competition, as the U.S. and Germany have adopted similar incentives. Without such measures, Japan fears domestic corporate investment could shift overseas.
Yomiuri: https://japannews.yomiuri.co.jp/business/economy/20251125-294726/
▶ Japan unveils its version of DOGE aimed at cutting wasteful spending
25 Nov, 2025
Photo Source: Asahi
Japan launched a new scheme to review and cut wasteful government spending by examining outdated subsidies, tax breaks, and investment funds. Led by Finance Minister Satsuki Katayama, the initiative aims to reassure the public about fiscal responsibility amid Prime Minister Sanae Takaichi’s 21.3-trillion-yen stimulus package. Public input will be sought via social media, and findings will inform the fiscal 2027 budget, though no specific spending-cut targets have been set. The effort reflects a push by Takaichi and her coalition partner Ishin to streamline government operations.
Asahi: https://www.asahi.com/ajw/articles/16179005
▶ Japan set to name AI, nuclear fusion among 6 strategic technology fields
25 Nov, 2025
Image: Nikkei
Japan plans to designate six national strategic technologies—AI and robotics, quantum tech, semiconductors and telecommunications, biotech and health care, nuclear fusion, and space—for priority funding and enhanced R&D tax incentives. The initiative aims to spur private investment in fields vital for economic growth and national security, with policies to be integrated into a new five-year science and technology plan. Support measures will include stronger industry–academia collaboration, talent development, startup support, and international cooperation. Japan’s move mirrors similar efforts by the United States and the European Union, which have identified and supported key technologies such as semiconductors, AI, quantum tech, and biotechnology.
Nikkei Asia: https://asia.nikkei.com/business/technology/japan-set-to-name-ai-nuclear-fusion-among-6-strategic-technology-fields
▶ Tougher re-entry screening eyed over unpaid medical bills
26 Nov, 2025
Photo Source: Takeshi Iwashita/Asahi
Japan plans to lower the threshold for barring foreign visitors with unpaid medical bills from 200,000 yen to 10,000 yen starting April 2026. Offenders would be registered in a health ministry database, leading to stricter re-entry screening. From April 2027, the policy may also cover long-term residents, potentially affecting visa renewals. The government is also reviewing subsidies for foreign schools as part of a broader immigration policy review expected in January.
Asahi: https://www.asahi.com/ajw/articles/16182796
▶ Japan to test 600-km quantum encryption network linking major cities
26 Nov, 2025
Image: Nikkei
Japan plans to build a 600 km quantum-encrypted communication network linking Tokyo, Nagoya, Osaka, and Kobe by March 2027, with field tests starting the same year and full technological establishment aimed around 2030. The project—part of a new economic package—will be operated by the National Institute of Information and Communications Technology with support from Toshiba, NEC, and telecom companies. Quantum encryption uses photons whose quantum states reveal any eavesdropping attempts, making the system theoretically unbreakable. Japan seeks to expand beyond its current short-range research network and compete with more advanced systems in China, the EU, and South Korea. The network is intended for highly sensitive data, including financial, diplomatic, and medical genomic information. It will also help Japan prepare for the era of mainstream quantum computers, which threaten traditional encryption, and support development of domestic expertise in quantum technologies.
Nikkei Aisa: https://asia.nikkei.com/spotlight/cybersecurity/japan-to-test-600-km-quantum-encryption-network-linking-major-cities
▶ Japan set to issue 11 tril. yen extra bonds despite record tax revenue
26 Nov, 2025
The Japanese government plans to issue about 11 trillion yen ($70 billion) in additional bonds to fund a 21.3 trillion yen economic package, despite record-high tax revenue of 80.7 trillion yen for fiscal 2025–26. The package aims to address rising living costs and support key industries.
The bond issuance and large spending have caused a yen and government bond selloff, raising concerns over Japan’s fiscal health, as public debt exceeds 200% of GDP. Prime Minister Sanae Takaichi emphasizes “responsible and proactive” spending to manage these risks.
Kyodo: https://english.kyodonews.net/articles/-/65686
▶Japan Accelerates Self-Driving Truck Tests, Aiming for "Level 4"
26 Nov, 2025
Photo Source: JIJI
Facing a driver shortage in logistics, Japan’s government and commercial vehicle makers are accelerating tests of Level 4 self-driving trucks, which operate without human intervention under certain conditions. In Hokkaido, a large truck completed a 5 km test course autonomously, handling lane changes, overtaking, acceleration, and braking, while a driver remained seated but hands-off. Officials emphasize the need to ensure safety and public trust, noting that a single accident could lead to public rejection of autonomous trucks.
JIJI: https://jen.jiji.com/jc/eng?g=ind&k=2025112500521
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▶ Official Opening of the “Kashiwazaki Hydrogen Park” - Integrated Facilities for Clean Hydrogen and Ammonia Production in Kashiwazaki City, Niigata
21 Nov, 2025
Photo Source: JOGMEC
Japan’s JOGMEC and INPEX have opened the Kashiwazaki Hydrogen Park in Niigata Prefecture, launching the country’s first integrated project to produce clean hydrogen and ammonia from domestic natural gas while capturing and storing the resulting CO₂ in depleted gas reservoirs. The initiative links production, CO₂ capture, and CO₂ injection, with support from NEDO for the first two components and joint research by JOGMEC and INPEX for the storage phase. Three wells—an injection well, an enhanced gas recovery well, and an observation well—have already been drilled, and CO₂ injection will begin once the hydrogen and ammonia production facilities are operational, with monitoring in place to ensure safe storage.
JOGMEC: https://www.jogmec.go.jp/english/news/release/news_10_00083.html
▶ Japan's Rapidus to build cutting-edge 1.4-nm chip plant in race with TSMC
25 Nov, 2025
Photo Source: Rie Ishii/Nikkei
Rapidus will build a second chip plant in Hokkaido in fiscal 2027 and aims to start producing 1.4 nm chips by 2029, with plans to move toward 1 nm. The project, costing over 2 trillion yen, will be heavily funded by the Japanese government along with bank loans and private investment. Rapidus’ first plant plans 2 nm mass production in late 2027, and R&D on 1.4 nm chips will begin in 2026 with help from IBM. The effort is meant to revive Japan’s chip industry and compete with TSMC, Samsung, and Intel, though achieving high yields at such advanced nodes remains a major challenge.
▶ Firm in Japan's major oyster belt gains global attention for upcycling shells
25 Nov, 2025
Photo Source: Mainichi
In Toba, Mie Prefecture, the company Careshell upcycles discarded oyster shells into granules and tiles, creating sustainable products that support clam farming, aquarium filtration, and eco-friendly building materials. Founded by Megumu Yamaguchi in 2002 and now run with his daughter Keiko, the company’s granules have been shown to promote faster growth of Manila clams and absorb CO₂, contributing to environmental conservation. Careshell has gained national and international recognition, winning the Emperor’s Cup in 2013 and inspiring joint research with France. Collaborations with technical colleges and manufacturers have expanded applications to oyster shell tiles, highlighting its potential for a circular economy and regional revitalization.
Mainichi: https://mainichi.jp/english/articles/20251124/p2a/00m/0bu/017000c
▶ The JERA Group, SMBC Group, and Yanmar Group Launch a Clean-Energy Partnership for Agriculture
26 Nov, 2025
Photo Source: JERA
JERA, SMBC, SMFL, Yanmar, and JERA Cross have agreed to collaborate on a clean-energy–based regional revitalization model, starting in the Tohoku region. The partnership aims to decarbonize and modernize agriculture, forestry, and fisheries by using locally sourced clean energy, electric equipment, digital technologies like agricultural robots, and virtual power plant projects. The companies hope to create higher-value regional products and support both green transformation and local economic growth.
JERA: https://www.jera.co.jp/en/news/information/20251126_2318
▶ Sojitz Acquires Electricity Retail Business in Australia
26 Nov, 2025
Photo Source: Sojitz
Sojitz has acquired a stake in Australia’s Next Green Group (NGG), making it a consolidated subsidiary to expand an integrated energy solutions business in Australia. NGG’s electricity retailing, rooftop solar, battery storage, and energy management services will be combined with the capabilities of Ellis Air and Climatech, Sojitz’s existing Australian HVAC companies.
With Australia’s strong demand for energy-efficient buildings and rapidly growing behind-the-meter (BTM) solar and battery systems, the partnership will offer comprehensive solutions—from HVAC installation to clean energy supply. Sojitz aims to grow long-term electricity sales and support Australia’s shift toward low-carbon and decarbonized energy systems.
Sojitz: https://www.sojitz.com/en/news/article/20251126.html
▶ Tokyo Gas to Procure LNG from U.S. Supplier
26 Nov, 2025
Tokyo Gas will purchase about 1 million tons of LNG annually from U.S. supplier Global Venture for 20 years starting in 2030, sourced from a Louisiana facility that liquefies U.S. shale gas. The deal supports Tokyo Gas’s efforts to diversify supply and the LNG will be used for city gas in Japan as well as trading and resale.
JIJI: https://jen.jiji.com/jc/eng?g=ind&k=2025112600574
Tokyo Gas (Japanese): https://www.tokyo-gas.co.jp/news/press/20251126-01.html
Nikkei Asia: https://asia.nikkei.com/business/energy/venture-global-signs-20-year-lng-supply-deal-with-tokyo-gas
▶ Hokkaido Expected to Restart Reactor at Tomari Nuclear Plant, Which Could Cut Electricity Costs by 11%
26 Nov, 2025
Photo Source: Yomiuri
Hokkaido Governor Naomichi Suzuki is expected to approve the restart of the No. 3 reactor at the Tomari nuclear plant, operated by Hokkaido Electric Power, with a target restart in early 2027. The decision follows safety screenings, local government consent, and deliberations at the prefectural assembly. The restart is prompted by rising electricity demand from semiconductor and data center projects. HEPCO plans to cut household electricity fees by about 11% after the reactor resumes operation. Construction of a tsunami seawall must be completed by March 2027 to avoid delays.
Yomiuri: https://japannews.yomiuri.co.jp/society/general-news/20251126-294968/
▶ SoftBank issues cumulative $64bn in retail bonds to power AI ambitions
27 Nov, 2025
Photo Source: SoftBank
SoftBank Group is nearing 10 trillion yen in retail bond issuance, dominating Japan’s retail bond market as it raises funds for Masayoshi Son’s major AI investments. A new 500 billion yen seven-year bond with a 3.98% coupon brings outstanding retail bonds to nearly 5 trillion yen.
SoftBank is investing heavily in projects like the Stargate AI initiative, increasing its stake in OpenAI, and expanding into robotics. Its strong retail bond demand helps support Son’s large-scale AI ambitions.
Nikkei Asia: https://asia.nikkei.com/business/softbank/softbank-issues-cumulative-64bn-in-retail-bonds-to-power-ai-ambitions
▶Japan shipping groups, shipbuilders unite on next-gen vessels
27 Nov, 2025
Photo Source: Nihon Shipyard
Top Japanese shipping companies—Nippon Yusen, Mitsui O.S.K. Lines, and Kawasaki Kisen Kaisha—will invest in MILES, a joint venture of Mitsubishi Heavy and Imabari Shipbuilding, to develop next-generation low-emission ships and liquefied CO₂ carriers. The move aims to standardize designs, improve efficiency, and boost Japan’s shipbuilding competitiveness, with government support including a 1 trillion yen fund to double output by 2035. Nippon Yusen also plans to expand its LNG fleet and prioritize domestic shipyards.
Nikkei Asia: https://asia.nikkei.com/business/transportation/japan-shipping-groups-shipbuilders-unite-on-next-gen-vessels
▶ Japanese companies take another crack at Australian hydrogen
27 Nov, 2025
Photo Source: Kawasaki Heavy Industries
Kansai Electric Power and Japan Suiso Energy (backed by Kawasaki Heavy) plan to jointly import blue hydrogen from Australia by 2030, supplying a thermal power plant in Hyogo and an industrial pipeline in Kawasaki. The focus on blue hydrogen—produced from natural gas with carbon capture—is aimed at reducing costs compared with green hydrogen. The initiative reflects lessons from previous Japanese project withdrawals due to high green hydrogen costs, and Kansai Electric is also exploring imports from the Middle East and India.
Nikkei Asia: https://asia.nikkei.com/business/energy/japanese-companies-take-another-crack-at-australian-hydrogen
▶ Japanese spring maker to invest $64m to make EV motor cores in India
27 Nov, 2025
Photo Source: Reuters
NHK Spring will start producing EV motor cores in India in fiscal 2026, investing a total of 10 billion yen ($64 million) by 2030, beginning with a 1.5 billion yen plant upgrade. The move aims to meet growing demand for electrified vehicles. The company also plans to expand motor-core production in Japan and Mexico and expects over 30 billion yen in related sales by 2030. Meanwhile, it will liquidate two automotive seat units in China due to slow sales, while keeping other Chinese operations.
Nikkei Asia: https://asia.nikkei.com/business/companies/japanese-spring-maker-to-invest-64m-to-make-ev-motor-cores-in-india
▶ Mitsubishi Materials bets on recycling copper in Europe to curb China risk
27 Nov, 2025
Photo Source: Mitsubishi Materials
Mitsubishi Materials is shifting its copper business toward recycling to offset losses from Chinese competition. It plans to build recycled-copper smelters in Europe and the U.S., doubling capacity for processing waste circuit boards by FY2035. The company will cut copper concentrate processing, increase recycled material use in Japan, and raise tungsten recycling to 100% outside China by FY2030. Procurement and sales divisions will be integrated into Pan Pacific Copper, though smelting and refining integration is not planned.
Nikkei Asia: https://asia.nikkei.com/business/materials/mitsubishi-materials-bets-on-recycling-copper-in-europe-to-curb-china-risk
Published: November 2025
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.
