Weekly Japanese Industry and Policy News: 31 May - 06 June, 2025
The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.
Economic News
▶ Japanese Small, Midsize Firms Increasingly Employing Foreign Workers; Effort Aims to Secure Talented Employees
01 June, 2025
Amid Japan’s severe labor shortage, small and midsize companies are increasingly hiring foreign workers, who now number 2.3 million, with over half working at firms with fewer than 100 employees. Companies like Koganei Seiki and Todaya ryokan rely on foreign talent for both technical and hospitality roles. However, issues such as poor working conditions, job immobility, and urban concentration persist—especially among the 470,000 technical intern trainees. In response, Japan will replace the technical intern program with a more flexible "training and employment" visa system by 2027. As Japan’s workforce is projected to shrink significantly by 2050, experts stress the need for better integration of foreign workers to sustain the economy.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20250601-257649/
▶ METI Hosts AZEC Leading Action Forum (AZEC LEAF)
03 June, 2025
From May 26 to 29, METI hosted the AZEC Leading Action Forum (Asia Zero Emission Community) in Tokyo, gathering officials from AZEC partner countries, the Asian Development Bank, and ERIA. Participants shared national energy transition policies, discussed decarbonization efforts in key sectors, and addressed challenges to advance initiatives on zero-emission power, sustainable fuel markets, and next-generation industry. The forum included facility tours and collaborative discussions to promote cooperation using Japan’s technologies.
METI: https://www.meti.go.jp/english/press/2025/0603_002.html
▶ Govt Sets 2025 Intellectual Property Strategy; Aims to Maximize Japan’s Capital Such as Anime, Manga, Games
04 June, 2025
Japan’s government has launched the Intellectual Property Strategic Program 2025 to promote the use of AI under clarified standards and boost the global competitiveness of its cultural assets like anime, manga, and games. The plan focuses on updating IP systems for the digital era, leading international rule-making in emerging technologies, and revitalizing local economies through the content industry. It highlights the potential of generative AI while addressing copyright and attribution challenges, aiming to ensure transparency and public understanding. Japan also plans to expand its overseas content market to ¥20 trillion by 2033 and promote tourism by designating around 200 media-related locations as regional hubs.
Yomiuri: https://japannews.yomiuri.co.jp/politics/politics-government/20250604-259004/
▶ Japan to form think tank with eye on Trump tariffs and Taiwan
04 June, 2025
Japan will establish a new think tank under the National Security Secretariat (NSS) to analyze economic security risks and offer policy proposals. This move responds to rising concerns over issues such as tensions around Taiwan, trade disputes, cyberattacks, and supply chain disruptions. The think tank will integrate expertise across diplomacy, military, economy, and technology, and will use classified information managed under a new security clearance system. It will also support talent development, allow collaboration with private and international researchers, and oversee related initiatives by the Cabinet Office and METI.
Nikkei Asia: https://asia.nikkei.com/Politics/Japan-to-form-think-tank-with-eye-on-Trump-tariffs-and-Taiwan
▶ Japan eyes tougher rules for foreign residents and tax hike for tourists
05 June, 2025
With a surge in foreign visitors and residents, Japan is considering reforms to address growing concerns over social services, tax loopholes, and overtourism. The government is reviewing foreign driver’s license rules, tackling unpaid health insurance premiums by foreign residents, and overhauling the tax-free shopping system due to widespread abuse. A higher departure tax for tourists is also under discussion. Additionally, lawmakers are reexamining the naturalization process, which is currently easier than obtaining permanent residency, raising fairness concerns.
Japan times: https://www.japantimes.co.jp/news/2025/06/05/japan/politics/foreign-residents-visitors-tax/
▶ Japan’s Birth Rate Remains Stubbornly Low Despite Efforts; Expert Recommends Reducing Working Hours, Work-Style Reform
06 June, 2025
Japan's birth rate hit a record low in 2024, with fewer than 700,000 births and a fertility rate of 1.15, despite years of government efforts like cash handouts and free education. Tokyo’s rate dropped below 1.0, and rural areas like Tohoku saw young women leave for cities, worsening local declines. Marriage rates remain low, and women are having children later. Experts suggest policies focusing on work-life balance, including shorter working hours and better employment stability, may be more effective in boosting the birth rate.
Yomiuri: https://japannews.yomiuri.co.jp/society/general-news/20250606-259504/
Business News
▶ Japan's Yanmar sets sights on Africa, starting with rice harvesters
31 May, 2025
Japanese farm equipment maker Yanmar Holdings is expanding into Africa, aiming to sell tractors and rice harvesters in 16 countries, starting with Ghana and Burkina Faso this fiscal year. Partnering with Ivory Coast-based ATC Comafrique, Yanmar targets the growing rice cultivation sector in West Africa, where mechanization is still limited. To compete with Indian and Chinese rivals, Yanmar will offer high-value machinery with GPS, French-language manuals, and possibly financing options. The company may also establish a local joint venture. Africa is seen as a key growth driver, and Yanmar aims to double overseas farm equipment sales by FY2029.
Yanmar: https://www.yanmar.com/global/news/2025/06/03/152129.html
▶ Mitsubishi Corporation to Invest and Enter into a Business Partnership with DEScycle Ltd., a UK Company Developing Innovative Metal Recycling Technology
02 June, 2025
Mitsubishi Corporation has agreed to acquire shares in UK-based DEScycle Ltd. and form a strategic partnership to promote sustainable metal recovery from e-scrap. DEScycle’s innovative technology uses Deep Eutectic Solvents (DES) to extract metals like copper and precious metals at room temperature and low energy, offering a cleaner alternative to traditional smelting. The partnership aims to support DEScycle’s pilot plant in the UK, with a commercial facility planned for 2028 and future expansion to Japan and North America. Mitsubishi will contribute marketing and investment expertise to help scale the business and advance circular economy efforts.
Mitsubishi Corporation: https://www.mitsubishicorp.com/jp/en/news/release/2025/20250602003.html
▶ KDDI to Deploy 1,000 Drone Hubs, Leveraging Starlink for Nationwide Coverage; To Use in Search after Disaster in Remote Areas
02 June, 2025
KDDI Corp. plans to begin testing drones that communicate directly with SpaceX’s Starlink satellites by the end of 2025, aiming for full implementation by March 2026. This system is designed to improve drone operations in remote or disaster-affected areas without cellular coverage. Starting in October, KDDI will set up 1,000 drone bases nationwide, with initial deployment in Ishikawa Prefecture and later expansion to Lawson stores, city halls, and other sites. The drones will be used for infrastructure monitoring, construction site oversight, and disaster response.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20250602-257847/
▶ Scientists in Japan develop plastic that dissolves in seawater within hours
04 June,, 2025
Japanese researchers from RIKEN and the University of Tokyo have developed a seawater-soluble plastic that dissolves within hours without leaving harmful residues. As strong as conventional plastics, the material breaks down into components that are biodegradable and non-toxic, offering a potential solution to ocean plastic pollution. While not yet commercialized, the innovation has drawn interest from industries like packaging and could help address the global plastic waste crisis.
Asahi: https://www.asahi.com/ajw/articles/15820301
▶ Mitsubishi Shipbuilding Signs Framework Agreement for Business Collaboration with Elomatic
-- Initiating Discussions on Business Collaborations in Maritime Engineering Field –
04 June, 2025
Mitsubishi Shipbuilding, part of Mitsubishi Heavy Industries, has signed a framework agreement with Finnish engineering firm Elomatic Oy to explore collaboration in maritime engineering. Announced at Nor-Shipping 2025 in Oslo, the partnership aims to combine both companies' strengths in decarbonization and digital technologies to expand services in Japan and Europe. This move supports Mitsubishi Shipbuilding’s strategy to build global partnerships and promote innovation and sustainability in the maritime industry.
MHI: https://www.mhi.com/news/25060402.html
▶ Toshiba Starts Sample Shipments of “SCiB™Nb”, its Innovative Rechargeable Lithium-ion Battery with Niobium Titanium Oxide Anode
04 June, 2025
Toshiba will begin sample shipments of its new lithium-ion battery, the SCiB™Nb, in June 2025. This battery uses a niobium titanium oxide (NTO) anode, offering fast charging (80% in 10 minutes), long life (up to 15,000 cycles), and high safety, even under repeated rapid charging. It targets commercial electric vehicles like buses and trucks that require high uptime and reliability. Developed in partnership with CBMM and Sojitz Corporation, the SCiB™Nb matches the energy density of current LFP batteries but with superior durability and safety. Real-world testing has been conducted in Brazil, and Toshiba aims to use this battery in EVs, ships, and stationary storage, supporting efforts toward a carbon-neutral society.
Toshiba: https://www.global.toshiba/ww/news/corporate/2025/06/news-20250604-01.html
▶ Japanese Researchers Develop ‘Transparent Paper’ as Alternative to Plastics; New Material Is Biodegradable, Can Be Produced with Low Carbon Emissions
05 June, 2025
Researchers from JAMSTEC have developed thick, transparent paper made from cellulose that is biodegradable and strong enough to be used for containers like cups and straws. Unlike plastics, this material breaks down in the ocean within months, even at great depths. While it could address plastic pollution and consumer visibility issues, mass production and cost remain challenges. The new paper emits less CO2 in production compared to plastic and offers a promising eco-friendly alternative.
Yomiuri: https://japannews.yomiuri.co.jp/science-nature/technology/20250605-259501/
▶ China's rare-earth export curbs halt output of Suzuki Swifts in Japan
05 June, 2025
Suzuki Motor has halted production of its Swift compact car in Japan due to a parts shortage caused by China’s export restrictions on rare-earth metals. These metals, essential for EV and hybrid motors, are largely produced in China, which imposed new controls in April in response to U.S. tariffs. This marks the first direct impact on a Japanese automaker. Production is suspended until June 12, with partial resumption expected on June 13 and full recovery by June 16—though risks remain. Other automakers in the U.S. and Europe, like Ford, are also experiencing disruptions. China defends its actions as standard international practice.
Nikkei Asia: https://asia.nikkei.com/Spotlight/Supply-Chain/China-s-rare-earth-export-curbs-halt-output-of-Suzuki-Swifts-in-Japan
▶ Toshiba Group is Strengthening its Data-Center Business
05 June, 2025
Toshiba Group is expanding its data center business by establishing a dedicated “Data Center Business Promotion Department” to provide one-stop solutions across the entire value chain—from planning and design to construction, operation, and XaaS. To support this effort, Toshiba Plant Systems & Services will launch a “Data Center Infrastructure Promotion Office” in July 2025. Responding to growing demand from digitization and AI, Toshiba aims to deliver energy-efficient, environmentally friendly solutions to support increased data center power use and contribute to carbon neutrality.
Toshiba: https://www.global.toshiba/ww/news/corporate/2025/06/news-20250605-01.html
▶ LVMH-backed firm hunts for Japan consumer brands with $315m fund
05 June, 2025
L Catterton, backed by LVMH, has launched its first Japan-focused buyout fund worth ¥45 billion ($315 million), targeting consumer-sector SMEs. Japan is attracting more global private equity due to its innovation, weak yen, and growing deal activity. Firms like Blackstone and Carlyle are also expanding in Japan to tap into these opportunities.
Nikkei Asia: https://asia.nikkei.com/Business/Finance/LVMH-backed-firm-hunts-for-Japan-consumer-brands-with-315m-fund
▶ Japan startup ispace fails again to put lander on Moon
06 June, 2025
Japanese startup ispace Inc. failed in its second attempt to land a spacecraft on the Moon, as its lander Resilience likely crashed after failing to slow down during descent. The mission, launched in January 2025, aimed to deliver a rover and equipment to the Moon’s northern hemisphere. Communication was lost during landing, and the mission was declared concluded. ispace also failed a 2023 attempt. Meanwhile, U.S. firms Intuitive Machines and Firefly Aerospace have successfully landed on the Moon.
