The Centre quarterly newsletter, June 2025 issue, is now available.
In this issue:
Centre’s…
Weekly Japanese Industry and Policy News: 07 - 13 June, 2025
The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.
Economic News
▶ EU, Japan to revoke blanket food import ban on disease-affected nations
06 Jun,2025
Japan and the European Union have begun talks to ease mutual food import bans by adopting "regionalization," a system that restricts imports only from disease-affected areas rather than entire countries. This move aims to boost food trade between the two regions and counter rising global protectionism, especially from the U.S. under President Trump. EU Agriculture Commissioner Christophe Hansen emphasized the importance of concluding poultry-related negotiations quickly during his upcoming visit to Japan. A broader agreement would replace current bilateral deals and apply uniformly across the EU. Both sides aim to increase exports of high-value food products. The talks also align with efforts to strengthen international food safety standards and free trade, particularly in cooperation with CPTPP members.
Nikkei Asia: https://asia.nikkei.com/Economy/Trade/EU-Japan-to-revoke-blanket-food-import-ban-on-disease-affected-nations
▶ Japan Govt Unveils Guidelines for Managing AI-Incorporated Defense Systems; Aims to Cancel Research of Systems Deemed High Risk
07 Jun, 2025
Japan’s Defense Ministry released guidelines to manage risks of AI in defense equipment, ensuring human control is maintained. Research on Lethal Autonomous Weapons Systems (LAWS), which operate without human decision-making, will be prohibited. The guidelines require a three-stage review—classification, legal review, and technical review—especially for high-risk AI systems. Defense contractors must cooperate by sharing AI algorithms, and the ministry will finalize cooperation methods in future talks.
Yomiuri: https://japannews.yomiuri.co.jp/politics/defense-security/20250607-260557/
▶ Japan Research Team to Set Up Country’s 1st Radio Telescope in Antarctica; Test Observations of Milky Way Galaxy to Begin in FY26
10 Jun,2025
A team led by the University of Tsukuba will set up Japan's first radio telescope in Antarctica, with test observations starting in fiscal 2026. The small 30 cm telescope will be installed 1,000 km inland from Showa Station at an altitude of 3,800 meters, where the dry, clear air offers ideal conditions for radio astronomy. The team aims to study gas distribution in the Milky Way to understand star formation. Future plans include building a larger 12-meter international observation base. The project involves researchers from the National Institute of Polar Research and Hokkaido University.
Yomiuri: https://japannews.yomiuri.co.jp/science-nature/science/20250610-262133/
▶ 16th Meeting of SDGs Promotion Headquarters (Results)
10 Jun,2025
On June 10, Prime Minister Shigeru Ishiba chaired the 16th SDGs Promotion Headquarters meeting, where Japan approved its third Voluntary National Review (VNR) on the SDGs. Cabinet ministers shared updates on their efforts toward achieving the goals. Ishiba emphasized accelerating progress to build a sustainable society that "leaves no one behind," addressing issues like aging, low birthrate, and disaster resilience. He highlighted Japan's commitment to human security and using events like the Osaka-Kansai Expo and GREEN EXPO 2027 to advance global SDGs cooperation.
MOFA: https://www.mofa.go.jp/ic/gic/pageite_000001_01033.html
▶ Japan lags in closing gender gap: government report
10 Jun, 2025
Japan lags behind many countries in gender equality, ranking 118th out of 146 in the 2024 Global Gender Gap Index and last among G7 nations. The government acknowledges insufficient progress, especially in raising women’s leadership, which remains low despite earlier targets. To improve, Japan’s latest gender equality policy focuses on supporting women entrepreneurs, especially in rural areas, preventing sexual harassment, closing the pay gap, and increasing women’s participation in decision-making. A new gender equality agency will launch in 2026 to help implement these efforts.
▶ Immigration Agency to Tighten Visa Requirements for Foreign Entrepreneurs; Move Eyed as Chinese Nationals Increasingly Obtain Status
10 Jun, 2025
Japan's Immigration Services Agency is considering raising the minimum capital requirement for the business manager visa, currently set at ¥5 million, to curb misuse—particularly by Chinese nationals using it primarily to reside in Japan. The visa allows up to five years of stay for foreign entrepreneurs who meet certain criteria and can also bring family members. With Chinese nationals now making up over half of visa holders, concerns have arisen over public safety and the visa being used as a pathway to permanent residency. Japan aims to ensure the visa remains focused on attracting highly skilled businesspeople, with discussions on revising the requirement to begin this fiscal year.
Yomiuri: https://japannews.yomiuri.co.jp/society/general-news/20250610-262095/
▶ Japan ruling bloc aiming for 30,000-40,000 yen cash handouts per person
11 Jun, 2025
Japan’s government and ruling parties are considering cash handouts of around 30,000–40,000 yen ($206–$275) to help with rising consumer prices, with higher amounts for low-income earners. The exact amount depends on tax revenues expected in July. The ruling Liberal Democratic Party favors direct cash payments, while coalition partner Komeito suggests using digital points to encourage spending. The plan is likely to be included in election pledges and aims to distribute benefits within this year.
Mainichi: https://mainichi.jp/english/articles/20250611/p2a/00m/0na/020000c
▶ Japan Joins Int'l Crackdown on Malware-Linked Servers
11 Jun, 2025
Interpol, together with law enforcement from 26 countries including Japan, conducted a joint operation from January to April that took down over 20,000 malicious IP addresses and domains linked to infostealer malware. In Japan, the National Police Agency and others secured 129 domestic servers. The operation aimed to block unauthorized communications and prevent information leaks, with Interpol coordinating efforts based on data from security firms.
Jiji: https://jen.jiji.com/jc/eng?g=eco&k=2025061101005
▶ Japan-Finland Summit Working Dinner
11 Jun, 2025
On June 11, Japanese Prime Minister Shigeru Ishiba and Finnish President Alexander Stubb agreed to strengthen cooperation in security, advanced technology, and economic security. They emphasized shared values, support for Ukraine, concern over Russia–North Korea ties, and close collaboration on North Korea-related issues. A joint statement on future cooperation was released.
MOFA: https://www.mofa.go.jp/erp/we/fi/pageite_000001_01039.html
Joint statement: https://www.mofa.go.jp/files/100859414.pdf
▶ The 1st Japan-EU Security and Defence Dialogue
12 Jun, 2025
On June 11, Japan and the EU held their 1st Security and Defence Dialogue in Brussels, as part of the partnership launched in November 2024. The two sides discussed cooperation in areas including cybersecurity, disinformation, space, maritime security, WPS, disarmament, and non-proliferation. Japan was represented by officials from the Ministry of Defense and Foreign Affairs, while the EU side was led by Dr. Benedikta von Seherr-Thoss of the European External Action Service.
MOFA: https://www.mofa.go.jp/erp/ep/pagewe_000001_00210.html
▶ Japan buys Russian crude oil for first time in over 2 years
12 Jun, 2025
Japan has resumed imports of Russian crude oil for the first time in over two years, using the sanctioned tanker "Voyager" to deliver oil from the Sakhalin 2 project to Taiyo Oil's refinery on June 8. The purchase was made at the request of Japan’s Ministry of Economy, Trade and Industry (METI) to help ensure a stable LNG supply, since oil and gas are co-produced at the site. Japan has a waiver from U.S. and EU sanctions, allowing the imports due to energy security concerns. The U.S. confirmed there would be no secondary sanctions for this shipment. Sakhalin 2 supplies about 10% of Japan’s LNG imports. While Shell exited the project after Russia’s 2022 invasion of Ukraine, Japanese firms Mitsui and Mitsubishi have retained their stakes.
Nikkei Asia: https://asia.nikkei.com/Business/Energy/Japan-buys-Russian-crude-oil-for-first-time-in-over-2-years
Business News
▶ Govt, Carmakers to Join Hands on Autonomous Cars With AI; New Technology Allows Greater Adaptability, Lower Cost
10 Jun, 2025
Major Japanese automakers, including Toyota, Honda, and Nissan, plan to jointly develop self-driving technology using generative AI, with government financial support. The initiative aims to help Japan catch up with the U.S. and China in this field. Unlike conventional systems, generative AI enables vehicles to make real-time decisions using dashboard camera footage, reducing reliance on expensive sensors and maps. A strategy plan is being submitted by relevant ministries, and automakers will decide their areas of cooperation by summer.
Yomiuri: https://japannews.yomiuri.co.jp/business/economy/20250530-256927/
▶ MAEGMA Minerals Partners with Primetals Technologies for MIDREX Flex Plant
10 Jun, 2025
On May 6, 2025, MAEGMA Minerals signed an MoU with Primetals Technologies to build a 2 million ton/year MIDREX Flex HBI plant in Lumut, Malaysia, with operations set to begin in 2029. The plant will initially use a mix of natural gas and hydrogen, allowing over 50% carbon reduction, and is designed to fully transition to hydrogen. It includes advanced automation and digital systems to ensure high-quality HBI production. The project supports MAEGMA's decarbonization goals and leverages local natural gas, green hydrogen from renewable energy, and nearby raw material sources. MAEGMA is part of Malaysia’s Melewar Group.
MHI: https://www.primetals.com/fileadmin/user_upload/press-releases/2025/2025053410/PR2025053410en.pdf
(Primetals Technologies, Limited A Group Company of Mitsubishi Heavy Industries Communications)
▶ Toyota proposes selling U.S. cars in Japan to promote tariff talks
10 Jun, 2025
Toyota has proposed selling U.S.-made cars in Japan through its domestic dealership network to support Japan's trade talks with the U.S. over tariffs imposed by President Trump. This move aims to help reduce the U.S. trade deficit, a key issue for Trump. Toyota Chairman Akio Toyoda informed Prime Minister Shigeru Ishiba of this plan, including the possibility of reimporting U.S.-produced vehicles. Japan faces high tariffs on cars under Trump's policies, and Japan’s top tariff negotiator will visit the U.S. soon to seek tariff concessions.
▶ Epson to launch copier-sized carbon capture devices
10 Jun, 2025
Seiko Epson plans to launch compact carbon capture devices, similar in size to office copiers, by fiscal 2028. Using film technology adapted from inkjet printers, the machines capture CO₂ without needing heat, reducing power use. They can capture over 10 kg of CO₂ daily when connected in sets of four and run on a standard power outlet. The captured CO₂ can be reused for products like dry ice and synthetic fuels. Japan’s carbon capture market is projected to grow significantly, reaching $245 billion by 2050.
Nikkei Asia: https://asia.nikkei.com/Spotlight/Environment/Climate-Change/Epson-to-launch-copier-sized-carbon-capture-devices
▶ Mitsubishi Electric and GE Vernova to Strengthen Cooperation on Power Semiconductors for HVDC Transmission Systems
10 Jun, 2025
Mitsubishi Electric has signed an MOU with GE Vernova to strengthen cooperation on power semiconductors for high-voltage direct-current (HVDC) transmission systems. The partnership, supported by Japan’s METI, aims to meet growing global demand for stable, long-distance electricity transmission driven by renewable energy use. Mitsubishi Electric, a global leader in VSC HVDC power semiconductors, will supply IGBT components to GE Vernova, enhancing both companies’ capabilities in expanding sustainable energy infrastructure.
Mitsubishi Electric: https://www.mitsubishielectric.com/en/pr/2025/0610-b/?category=&year=
▶ Toyota and Daimler finalize plan to merge truck units in 2026
11 Jaun, 2025
Toyota and Daimler Truck will merge their truck units, Hino Motors and Mitsubishi Fuso, under a new holding company by April 2026, with each parent company owning 25%. The merger aims to boost profitability and accelerate innovation in response to industry challenges like electrification, autonomy, and emissions standards. Hino will issue shares and transfer its Hamura plant to Toyota for ¥150 billion. Despite past scandals and existing ties with Isuzu, Toyota says the merger won’t affect its other partnerships.
Japan times: https://www.japantimes.co.jp/business/2025/06/11/companies/hino-mitsubishi-fuso-merger/
▶ Yanmar Launches “Save The Farms by Yanmar” to Protect the Future of Farmland Through Food Production and Energy Transformation Technologies
11 Jan, 2025
Yanmar Holdings has launched the “Save The Farms by Yanmar” initiative to promote sustainable agriculture and protect farmland in Japan. The project combines regenerative farming with agrivoltaics (solar panels above farmland) to tackle issues like labor shortages, aging farmers, and abandoned land. The first phase has begun in Ritto City (Shiga) and Okayama City, with plans to expand to 1,000 hectares in Japan by 2030 and explore global rollout. The initiative includes two models: one led by local farmers with Yanmar’s support, and another managed fully by Yanmar, leasing land and handling production and sales. From April 2026, Yanmar will also begin power generation using solar energy to support agricultural operations and local communities during emergencies.
Yanmar: https://www.yanmar.com/global/news/2025/06/11/152665.html
▶ MHI Invests in iPEACE223, a Company Developing Clean Fuel Production Technology Using Bioethanol as its Feedstock
11 Jun, 2025
Mitsubishi Heavy Industries has invested in Tokyo-based start-up iPEACE223, which is developing technology to produce carbon-neutral fuels like propylene and propane from bioethanol using zeolite catalysts. The initiative supports the transition from fossil fuels and aligns with MHI's efforts to advance clean energy and decarbonization.
MHI: https://www.mhi.com/news/250611.html
▶ Sumitomo Chemical Establishes Mass Production Technology for Super Engineering Plastic Using Biomass Materials
12 Jan, 2025
Sumitomo Chemical has developed a mass production technology for liquid crystal polymer (LCP) using biomass-derived monomers, aiming to start customer-certified supply by fiscal 2027. LCP is a high-performance plastic used in electronics and automotive parts. The new bio-based process uses a "segregation" method to precisely control biomass content, and the company may also adopt a "mass balance" approach based on customer needs. This initiative supports sustainability and the shift away from fossil resources, aligning with Sumitomo's broader efforts to combine chemical and synthetic biology technologies for greener manufacturing.
Sumitomo Chemical: https://www.sumitomo-chem.co.jp/english/news/detail/20250612e.html
▶ Honda mulls investment in state-backed Japan chip venture Rapidus
12 Jun, 2025
Honda is considering investing in Japan's state-backed chipmaker Rapidus Corp., potentially joining Toyota and others. The investment would support advanced technologies like autonomous driving. Rapidus aims to start mass-producing 2-nanometer chips in 2027 through a partnership with IBM.
Mainichi: https://mainichi.jp/english/articles/20250612/p2g/00m/0bu/009000c
▶ Jera touts 20-year LNG agreements with U.S. suppliers
12 Jun, 2025
Jera, Japan’s largest power producer, has signed 20-year deals to buy up to 5.5 million tons of LNG annually from U.S. suppliers, including NextDecade and Commonwealth LNG. The move supports Japan's energy security and aligns with U.S. efforts to expand LNG exports. With rising power demand expected due to the AI boom, Japan is securing flexible LNG contracts that also allow resales to other markets if domestic demand falls.
Japan times: https://www.japantimes.co.jp/business/2025/06/12/companies/jera-lng-us/
Jera: https://www.jera.co.jp/en/news/information/20250612_2184
▶ Mitsubishi Estate to acquire majority interest in Patron Capital Partners
12 Jun, 2025
Mitsubishi Estate Co., Ltd. has agreed to acquire a majority stake in UK-based real estate firm Patron Capital Partners through its investment arm, Mitsubishi Estate Global Partners, pending regulatory approval. This move strengthens Mitsubishi's European investment management platform and supports its goal of reaching ¥10 trillion in assets under management (AuM) by FY2030. Patron, established in 1999, has raised €5.3 billion and manages €4.6 billion in assets, with over 200 transactions across 17 countries, including recent investments in the Netherlands and UK. In 2024, Patron acquired a Dutch light industrial portfolio focused on sustainable renovations. Following this acquisition, Mitsubishi Estate's total AuM will rise to approximately ¥6.8 trillion.
Mitsubishi Estate: https://www.mec.co.jp/news/mec250612_patron_capital_partners/mec250612_patron_capital_partners_ENG.pdf
▶ Mitsubishi Electric Achieves World’s First Performance Verification of GaN Power Amplifier Module for 5G-Advanced Base Stations
12 Jun, 2025
Mitsubishi Electric has developed the world’s first compact 7GHz band GaN power amplifier module (PAM) with the highest power efficiency, aimed at improving 5G-Advanced base stations and supporting the transition to 6G. The module, measuring just 12.0mm x 8.0mm, was successfully tested with 5G-Advanced signals. Technical details will be presented at IEEE IMS 2025 in San Francisco, including a live demo with Wupatec.
Mitsubishi Electric: https://www.mitsubishielectric.com/en/pr/2025/0612/?category=&year=
▶ Taiwan chip titan TSMC opens joint lab with University of Tokyo
12 Jan, 2025
Taiwan Semiconductor Manufacturing Co. (TSMC) has opened its first overseas joint research lab with the University of Tokyo, aiming to advance practical semiconductor technologies and train more researchers in Japan. The lab will support collaboration on chip development and offer educational opportunities for Ph.D. students. Despite U.S. pressure to boost chip investment domestically, TSMC reaffirmed its commitment to Japan, where it also operates a new chip plant in Kumamoto and plans a second by 2027.
Nikkei Asia: https://asia.nikkei.com/Business/Technology/Taiwan-chip-titan-TSMC-opens-joint-lab-with-University-of-Tokyo
▶ JAXA Unveils New HTV-X Unmanned Vehicle; Will Make Five Trips to Deliver Supplies to Astronauts by Fiscal 2029
12 Jan, 2025
JAXA has unveiled the HTV-X No. 1, a new unmanned cargo spacecraft that will deliver supplies to the International Space Station. Scheduled for launch this fiscal year on an H3 rocket, the HTV-X is a successor to the retired HTV, developed with Mitsubishi Electric at a cost of ¥35.6 billion. It has 1.5 times more capacity and will make five missions by fiscal 2029.
Yomiuri: https://japannews.yomiuri.co.jp/science-nature/technology/20250612-263108/
▶ Mitsubishi Corp. to start importing Canadian LNG in 1st for Japan
13 Jun, 2025
Mitsubishi Corp. will begin importing liquefied natural gas (LNG) from Canada by July 2025, becoming the first Japanese company to do so at scale. Mitsubishi holds a 15% stake in the $14 billion LNG Canada project, giving it access to 2.1 million tons of LNG annually. This marks Japan’s effort to diversify LNG supply amid rising energy demand and shipping disruptions. LNG Canada offers a faster, safer shipping route to Japan compared to U.S. and Middle East sources. Japan’s LNG imports rose in fiscal 2024 for the first time in 8 years due to growing power demand from AI and tech. Mitsubishi’s total LNG capacity will grow from 12.8 million to 14.9 million tons annually. While global LNG supply is expected to increase, oversupply and price drops are forecast around 2026. Mitsubishi expects strong future profits from its Canadian LNG operations.
Nikkei Asia: https://asia.nikkei.com/Business/Energy/Mitsubishi-Corp.-to-start-importing-Canadian-LNG-in-1st-for-Japan
▶ Tesla to take Japan virtual power plant business nationwide
13 Jun, 2025
Tesla is expanding its Virtual Power Plant (VPP) business across Japan, offering free Powerwall batteries to businesses through partners Fuyo General Lease and Global Engineering. The system stores solar energy and helps balance power supply and demand. Distribution starts this month, with 100 units planned by fiscal 2025. Japan’s shift to renewables is boosting demand for such solutions. The government plans to support VPP growth by 2026, and local companies like TEPCO are also entering the market.
Nikkei Asia: https://asia.nikkei.com/Business/Energy/Tesla-to-take-Japan-virtual-power-plant-business-nationwide
▶ Hydrogen-engine generator that could power offices, stores tested in Japan
13 Jun, ,2025
Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), a group company under Mitsubishi Heavy Industries, has unveiled a hydrogen-powered generator being tested in Japan. The 500kW-class generator, tested since May 2024 at the Sagamihara plant, aims to provide carbon-free power for buildings. It achieved 435kW output using 100% hydrogen in FY2023. Testing continues through FY2026, with efforts to improve performance. While hydrogen demand is expected to grow, it remains six times more expensive than natural gas. MHIET is also developing hybrid hydrogen-gas generators.
Nikkei Asia: https://asia.nikkei.com/Business/Energy/Hydrogen-engine-generator-that-could-power-offices-stores-tested-in-Japan
