Weekly Japanese Industry and Policy News: 08 Feb - 14 Feb,2025

The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.

 

Economic News 

 

▶　Japan Local Govts Promoting Exchanges with Expo Participating Nations 

11 Feb, 2025 

The Japanese government is supporting local communities to promote international exchanges in anticipation of the Osaka World Expo, set to take place from April 13 on Yumeshima. A total of 146 exchange plans by 92 local governments have been registered, aiming to boost youth exchanges, tourism, and overseas expansion. The government will provide subsidies for related costs. Similar programs were held for the 2021 Tokyo Olympics. Local initiatives include partnerships with countries like France, Saudi Arabia, and Seychelles, focusing on cultural, educational, and business exchanges. The goal is to maintain these interactions post-Expo. 

Yomiuri: https://japannews.yomiuri.co.jp/society/general-news/20250211-237902/ 

 

▶　Kagoshima launch pad to be upgraded for more H3 lift-offs 

11 Feb, 2025 

Japan's space agency JAXA plans to increase the number of annual launches of its H3 rocket to seven or more, starting in fiscal 2025. The government has allocated 1.88 billion yen ($12 million) for upgrades to the Kagoshima launch site, including expanding liquid oxygen storage and increasing satellite assembly buildings. These improvements aim to reduce launch intervals and enhance flexibility, boosting Japan's competitiveness in securing satellite launch contracts. JAXA expects to complete the upgrades by fiscal 2027, with the goal of conducting launches at one-month intervals. 

Asahi: https://www.asahi.com/ajw/articles/15590527 

 

▶ Minister Muto Attends Japan-EU Business Roundtable Annual Meeting 

12 Feb, 2025 

On February 12, Japan's Minister of Economy, Trade, and Industry, Muto, attended the Japan-EU Business Roundtable, where both sides presented policy proposals. In his opening speech, Muto highlighted the importance of Japan-EU collaboration on innovation, energy security, free trade, and economic security. Economic Affairs Commissioner Matsuo also participated, discussing cooperation in economic security, digital technology, and energy. 

METI(Japanese): https://www.meti.go.jp/press/2024/02/20250212006/20250212006.html 

 

▶　Japan and South Korea rush to respond to Trump steel tariffs 

12 Feb,2025 

U.S. President Donald Trump's administration is set to impose a 25% tariff on steel imports starting March 12, with the goal of boosting domestic steel production and protecting national security. Japan and South Korea, key steel exporters to the U.S., are preparing responses to the tariffs. Japan is seeking exclusion from the measures, with the government offering insurance for canceled U.S. orders. South Korea is assessing the potential economic impact, as it was the fourth-largest steel exporter to the U.S. last year. Both countries are concerned about broader trade tensions and the potential extension of tariffs to other industries, such as automobiles and semiconductors. Trump suggested that countries with a "security relationship" with the U.S. could discuss alternatives to the tariffs. 

Nikkei Asia: https://shorturl.at/DnpnU 

 

▶　1-T.-Dlr U.S. Investments to Include AI, Chips: Ishiba 

12 Feb, 2025 

Prime Minister Shigeru Ishiba announced Japan's pledge to increase its investments in the U.S. to around 1 trillion dollars, focusing on areas such as artificial intelligence, semiconductors, energy, and automobiles. This commitment was shared with U.S. President Donald Trump during their summit. Ishiba also addressed the U.S. government's 25% tariffs on steel and aluminum imports, stating that Japan is seeking an exemption and will closely monitor the situation, though the tariffs were not discussed during the summit. 

Jiji: https://jen.jiji.com/jc/eng?g=eco&k=2025021200671 

 

▶　Japan requests U.S. to exclude Japan from steel, aluminium tariffs 

12 Feb, 2025 

Japan's industry minister Yoji Muto announced that Japan has requested an exemption from the U.S. steel and aluminum tariffs, following President Trump's decision to impose a flat 25% tariff. While Trump stated the tariffs would help U.S. industries, they could trigger a broader trade conflict. He later indicated that he would give "great consideration" to Australia's request for an exemption due to its trade deficit with the U.S. 

Asahi: https://www.asahi.com/ajw/articles/15622421 

 

▶　Taiwan plans investment and trade center in Japan's Fukuoka 

12 Feb, 2025 

Taiwan plans to open a center in Fukuoka, Japan, to promote investment and trade in the semiconductor and AI industries. The center will strengthen Taiwan-Japan semiconductor supply chain cooperation and expand industrial applications in areas like AI, robotics, and drones. With Taiwan being central to the global semiconductor supply chain and Fukuoka serving as a key hub in Japan, the center aims to help Taiwanese companies enter the Japanese market. Taiwan Semiconductor Manufacturing Co.'s new factory in Kumamoto Prefecture further strengthens ties between the two nations' chip sectors. 

Mainichi: https://mainichi.jp/english/articles/20250212/p2g/00m/0in/001000c 

 

▶　Japan companies cut CO2 emissions while expanding businesses, study shows 

13 Feb. 2025 

In 2024, major Japanese companies reduced CO2 emissions per unit of sales by nearly 31% from 2021, mainly through increased use of renewable energy. Companies like Seiko Epson and Murata Manufacturing saw significant cuts, though reducing emissions from direct operations remains challenging. Japan aims for a 46% reduction in emissions by 2030, with industrial emissions making up 30% of the total. 

Nikkei Asia: https://asia.nikkei.com/Business/Business-trends/Japan-companies-cut-CO2-emissions-while-expanding-businesses-study-shows 

 

▶　Indonesia state investor to launch fund with Development Bank of Japan 

13 Feb, 2025 

1 The Development Bank of Japan (DBJ) and Indonesia's sovereign wealth fund, INA, are launching a $60 million fund to finance midsize Indonesian companies with annual sales of $30 million to $60 million. Each will contribute $30 million, marking DBJ's first partnership with a foreign state-backed fund. The fund will target sectors like healthcare and logistics, and aims to invest in three companies initially. This partnership aligns with DBJ's goal of connecting with promising Indonesian businesses for future joint investments. Indonesia, with strong economic growth, is attracting increasing interest from Japanese financial institutions. 

Nikkei Asia: https://asia.nikkei.com/Business/Finance/Indonesia-state-investor-to-launch-fund-with-Development-Bank-of-Japan 

 

▶　Researchers in Japan Develop Robot Hand with Cultured Muscles 

13 Feb, 2025 

Researchers from the University of Tokyo and Waseda University have developed a biohybrid robot hand using cultured human muscle tissues. Measuring 18 centimeters, it is the largest of its kind and features five independently moving fingers. While it cannot yet lift objects, the team hopes the technology can be applied to prosthetic limbs in the future. The research was published in *Science Robotics*, and the hand's fingers bend by electric signals that cause the muscle tissues to contract. 

Jiji: https://jen.jiji.com/jc/eng?g=eco&k=2025021300442  

The University of Tokyo (Press release):  https://www.u-tokyo.ac.jp/focus/en/press/z0508_00386.html 

 

▶　Osaka Expo turns to high-end cuisine to attract foodies 

14 Feb, 2025 

The Osaka Expo, running from April 13 to October 13, will feature a variety of high-end cuisine, including a 30,000 yen ($200) course and an international "kaitenzushi" (conveyor belt sushi) experience with dishes from around 70 countries. Despite some stalls being unfilled due to lower-than-expected vendor participation, organizers are focused on offering a diverse food experience, including halal and vegan options. Notable attractions include a 135-meter conveyor belt serving sushi and global dishes, as well as food from pavilions of countries like Italy, Kuwait, and South Korea. The Expo will also highlight Japan’s food culture and showcase new food-related technologies. 

Mainichi: https://mainichi.jp/english/articles/20250213/p2g/00m/0bu/044000c 

 

▶　Japan researchers target degenerative eye disease with gene therapy 

14 Feb, 2025 

Researchers from Keio University and other institutions have begun a clinical trial for a gene therapy aimed at restoring light sensitivity in patients with retinitis pigmentosa, a hereditary eye disorder causing progressive vision loss. The therapy, developed by the startup Restore Vision, uses optogenetics to make retinal nerve cells function as light sensors. The first patient was treated on Feb. 6, with six to 15 participants expected in the trial. The goal is to eventually commercialize the gene therapy, following further clinical trials. Similar gene therapy research is also being conducted in the U.S., Europe, and Asia. 

Nikkei Asia: https://asia.nikkei.com/Business/Science/Japan-researchers-target-degenerative-eye-disease-with-gene-therapy  

 

Business News 

 

▶　Mitsubishi Corporation, Kirin Brewery, MCKB, Takasago Thermal Engineering, and Miura Collaborate On Energy Conversion From Fossil Fuels To Green Hydrogen 

07 Feb, 2025 

Mitsubishi Corporation, Kirin Brewery, MCKB Energy Service, Takasago Thermal Engineering, and Miura are collaborating on a demonstration project to convert part of the fuel used in Kirin Brewery's Chitose Brewery steam boiler from fossil fuel to green hydrogen. Starting in June 2026, the project aims to replace 23% of the brewery's annual heat demand with hydrogen, reducing greenhouse gas emissions by 464 tons per year. The project will run for about 10 years to assess the effectiveness of GHG emission reductions and technical challenges in energy conversion, accelerating efforts to meet emission reduction targets. 

Mitsubishi Corporation: https://www.mitsubishicorp.com/jp/en/news/release/2025/20250207001.html 

 

▶　SoftBank app SureTalk turns sign language into text 

11 Feb, 2025 

SoftBank Corp. is collaborating with the University of Electro-Communications in Tokyo to improve SureTalk, an AI-based app that converts sign language gestures into text. The app uses camera input to recognize sign language movements and translates them into natural text, including necessary postpositional particles. Initially launched in 2020 for municipal governments, SureTalk now has a database of 5,000 words and is used by around 20 local governments. The app aims to make sign language more accessible, with hopes of expanding its use in public spaces like airports and hospitals. 

Asahi: https://www.asahi.com/ajw/articles/15582187 

 

▶　Mitsubishi Power Secures Major Gas Turbine and Services Order for Al Wahda Open Cycle Gas Turbine Power Plant in Morocco 

12 Feb, 2025 

Mitsubishi Power has secured a major order in Morocco to supply two M701JAC gas turbines for the Al Wahda Open Cycle Gas Turbine Power Plant, owned by The National Office of Electricity and Drinking Water (ONEE). The plant, located near the Al Wahda Dam, will stabilize Morocco's national grid by integrating with the country's growing renewable energy sources. The turbines will generate 990 MW, nearly 7% of Morocco's grid capacity. Mitsubishi Power's turbines are designed to co-fire hydrogen with natural gas, supporting Morocco's decarbonization goals. The plant is set to begin operations in 2027, with a long-term service agreement in place. This project highlights Morocco's commitment to increasing renewable energy and grid reliability. 

Mitsubishi Heavy Industry: https://power.mhi.com/regions/mena/news/250212.html 

 

▶　Moonshot firm ispace upbeat as Trump keeps Artemis lunar missions with Japan 

13 Feb, 2025 

Tokyo-based moon exploration company ispace is optimistic about ongoing U.S.-Japan collaboration on lunar missions, despite uncertainties in U.S. space policies under President Trump’s second term. Following a meeting between Trump and Japanese Prime Minister Ishiba, which reaffirmed their partnership for NASA's Artemis program, ispace's CEO, Takeshi Hakamada, expressed confidence in the continuity of NASA’s Commercial Lunar Payload Services (CLPS) program. Ispace's Resilience lander will attempt its second lunar touchdown in about three months, and its third mission, planned for 2026, will send a scientific lander to the moon’s far side. Ispace expects a net loss of 10.8 billion yen for the fiscal year but aims for profitability in the coming years. 

Asahi: https://www.asahi.com/ajw/articles/15623802 

 

▶　Japan's Mazda plans to invest $150m in Thailand to make EVs 

13 Feb, 2025 

Mazda Motor plans to invest 5 billion baht ($150 million) in Thailand to produce electric compact SUVs. The investment aims to support domestic sales and exports to Japan and other countries, including ASEAN nations, with a production target of 100,000 units per year, according to Thailand's Board of Investment. 

Nikkei Asia: https://asia.nikkei.com/Business/Automobiles/Japan-s-Mazda-plans-to-invest-150m-in-Thailand-to-make-EVs 

 

▶　Honda, Nissan to scrap merger plan as talks collapse 

13 Feb, 2025 

Honda and Nissan have abandoned their plan to merge, which was initially announced in December 2023. The two Japanese automakers aimed to cut costs and better compete with rivals like Tesla and BYD. However, concerns over Nissan's slow turnaround efforts, including its job cuts and production reductions, led Honda to propose making Nissan a subsidiary instead, which upset Nissan’s board. This disagreement ultimately resulted in the collapse of the merger talks, which were initially set to conclude by June 2025. 

Mainichi: https://mainichi.jp/english/articles/20250213/p2g/00m/0bu/005000c 

 

▶　DeepSeek reveals loophole in Japan's personal data safeguards 

14 Feb, 2025 

The Japanese government is facing challenges in addressing security concerns related to Chinese startup DeepSeek's generative AI services, which may fall outside Japan's personal data protection laws. The AI model has raised alarms about the potential misuse of personal data, as it stores information on servers in China and is subject to Chinese law. Japan's Personal Information Protection Commission issued a notice cautioning against its use for official business. Although DeepSeek is available in Japan, it remains unclear whether it is subject to Japan's data protection regulations. The government is considering new legislation to investigate AI misuse but faces limitations in enforcement. 

Nikkei Asia: https://asia.nikkei.com/Business/Technology/Artificial-intelligence/DeepSeek-reveals-loophole-in-Japan-s-personal-data-safeguards