The EU-Japan Centre is pleased to start a new weekly service by publishing brief summary of the latest information from the Japanese governmental organizations & private companies/organizations. A couple of minutes reading to be informed about what is happening in Japan's policy, economy, EU-Japan relations, and innovation.

*Information is deemed correct at the time of release. 

Toyota launches all-solid-state battery EV in 2027, charging 10 minutes 1,200 km
In 2027, Toyota will launch an electric vehicle (EV) equipped with an all-solid-state battery, which is considered to be the next-generation battery. It can run about 1,200 kilometers after charging for less than 10 minutes, and the cruising range is 2.4 times longer than that of current EVs. It will extend the life of the battery, which was a weak point, and rush to develop technology for mass production in the future. If it is put into practical use, there is a possibility that it will change the power map of the EV market.

On June 13, Toyota clarified its policy at a technical briefing held at its research base in Shizuoka Prefecture. It says that it has overcome the durability problem of all-solid-state batteries, and aims to use it in EVs with a specific timeframe of 2027 to 2028. In the summer of 2020, Toyota obtained a number for the world's first vehicle equipped with an all-solid-state battery and conducted a test run. In the future, it is also possible to extend the cruising range to about 1,500 kilometers with a charging time of 10 minutes or less.

In addition to solid-state batteries, Toyota will also improve the performance of existing liquid lithium-ion batteries. A next-generation model is planned to be introduced in 2026, and it will be able to run approximately 1,000 kilometers, twice as much as the current EV "bZ4X," on a 20-minute charge. If it can introduce EVs with all-solid-state batteries in 2027-28, it’ll be able to offer a wide range of vehicle models equipped with various batteries by 2030.

TOYOTA website:
https://global.toyota/en/newsroom/corporate/39288520.html

The government proposes regulations on App distribution to Apple and Google
On June 16, the government's Digital Market Competition Council compiled a draft regulation for IT companies that provide operating systems for smartphones. It will prohibit IT giants from forcing app developers to use the app stores and payment systems they offer, allowing consumers to choose from a variety of stores and payment methods.

Smartphone operating systems are dominated by two companies, Apple and Google. It is also envisioned that the two companies will create new legislation that will be the primary target. Apple has limited the way that iPhone users with smartphones can obtain apps to its own App Store. The proposed regulation requires Apple and others to accept alternative app stores operated by other companies.

Regarding the payment system, It also recommended allowing app developers to use non-Apple and non-Google payment systems. If App stores and payment methods diversify, for example, major game companies can offer their own app stores and reduce fees. Consumers may be able to purchase games and items at lower prices.

Prime minister’s office website (in Japanese):
https://www.kantei.go.jp/jp/singi/digitalmarket/kyosokaigi/dai7/siryou1s.pdf

Unfair Trade Report: “Concerns about economic coercion grow with China in mind”
On June 16, the Ministry of Economy, Trade and Industry (METI) released the "Unfair Trade Report" summarizing trade issues with each country. With China in mind, concerns about "economic coercion" are increasing, and it has indicated a policy to strengthen cooperation with other countries. In this year's report, with China in mind, for the first time, the main theme was "economic coercion," which puts pressure on partner countries by raising tariffs and restricting exports.

As a case of suspected "economic coercion", it includes the addition of tariffs on Australian barley and wine. On top of that, it has become an important policy issue, such as confirming that it will work to strengthen its response at the G7 Hiroshima Summit held last month, as concerns about economic coercion are increasing. The METI announced a policy of strengthening cooperation with the G7 and other countries in order to support the resilience of companies' supply chains and create an environment that deters economic coercion.

METI website:
https://www.meti.go.jp/english/press/2023/0616_001.html

Japan drops to 125th on the gender equality index
On June 21, the World Economic Forum (WEF) released the "Gender Gap Index," which measures how well gender equality has been achieved. Of the 146 countries surveyed, Japan ranked 125th, its lowest ever. The index in the political and economic fields deteriorated, and the ranking dropped from the previous year's survey (116th).

The survey indexes the current state of gender equality in four areas: economy, education, health, and politics. Each field is indexed with 1 if it is completely realized and 0 if it is not at all, and the overall evaluation ranking is announced every year. Japan ranked 138th in "Politics" and 123rd in "Economy".

Japan's rating is particularly low for gender equality in politics. In addition to the fact that the number of female legislators and ministers is significantly lower than in other countries and regions, the fact that there has never been a female prime minister has been factored into the index and ranking. It is in the lowest range in the world, below Saudi Arabia (131st), which is said to restrict women's rights. 

The WEF analyzed that Japan has achieved more than 99% of gender equality in education. However, this time, with the addition of the percentage of students going on to college or higher, the ranking dropped significantly to 47th from the previous year (1st). This may have contributed to the overall decline in ranking.

WEF website:
https://www.weforum.org/reports/global-gender-gap-report-2023

Japan's competitiveness ranks 35th in the world, lowest ever in the World Competitiveness Ranking 2023
The Swiss-based business school IMD - International Institute for Management Development (IMD) announced the "World Competitiveness Ranking 2023" on June 20. Japan ranked 35th, the lowest ever.

This data was calculated from 164 statistical data collected in cooperation with 57 partner institutions around the world and the response data answered by 6,400 managers around the world. "Economic Performance”, “Government Efficiency", "Business Efficiency" and "Infrastructure" are the factors to determine the ranking of competitiveness. Japanese partner institutions are Mitsubishi Research Institute and KEIZAI DOYUKAI (Japan Association of Corporate Executives).

In the overall rankings for 2023, Japan dropped one place from 34th place in the previous ranking and ranked 35th out of 64 countries, setting a record low. Japan's competitiveness has been steadily declining since 1997, when it ranked 17th. In the Asia-Pacific region, Singapore ranks first (4th overall), followed by Taiwan (6th overall) and Hong Kong (7th overall). In addition, emerging countries such as Malaysia, Thailand, and Indonesia are ranked higher than Japan. Japan ranks 11th out of 14 countries in terms of competitiveness in the Asia-Pacific region, and the result is that "counting from the bottom is faster".

IMD website:
https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-competitiveness-ranking/2023/

Japan and Australia move forward to build a hydrogen supply network using large liquefied hydrogen carriers　
On June 19, the Ministry of Land, Infrastructure, Transport and Tourism announced that the maritime authorities of Japan and Australia agreed with the transportation system of liquefied hydrogen with a new cargo tank insulation system replacing the vacuum insulation system to the toward the realization of a large liquefied hydrogen carrier. The new cargo tank insulation system consists of two layers of shells, inner and outer, and the space between the inner and outer shells is filled with hydrogen gas to achieve high thermal insulation performance. Based on this agreement, the design of a large liquefied hydrogen carrier will be carried out in the future.

Commercialization of future international hydrogen supply chains will require mass transportation of liquefied hydrogen. Therefore, the NEDO project is currently planning to build a large liquefied hydrogen carrier capable of carrying a total of 160,000 m3 of liquefied hydrogen, with four 40,000 m3 cargo tanks per tank. However, the transport requirements for liquefied hydrogen agreed between Japan and Australia in 2017 assume a liquefied hydrogen carrier with a vacuum insulation system with a capacity of 1,250m3. It is said that applying this method to a large liquefied hydrogen carrier cannot be a realistic structure.

For large-scale marine transport of hydrogen, liquefied hydrogen cooled to -253°C and reduced to 1/800 of its volume must be kept cold for a long period of time. A new cargo tank insulation system insulates the space between the inner and outer shells with hydrogen gas. Since the temperature of liquefied hydrogen is extremely low, it will liquefy if it is filled with a gas other than hydrogen (boiling point -253°C) or helium (boiling point -269°C). As helium is a scarce resource, they decided to fill it with hydrogen gas.

MILT website (in Japanese):
https://www.mlit.go.jp/report/press/kaiji08_hh_000086.html

WTO judges China's anti-dumping measures on Japanese stainless-steel products to be in violation
On June 19, the Ministry of Economy, Trade and Industry (METI) announced that the World Trade Organization (WTO) Dispute Settlement Subcommittee (Panel) recognized Japan's claims in a dispute over China's anti-dumping measures on Japanese stainless-steel products and announced that it had recommended China to make corrections. It is expected to be adopted by the WTO Dispute Settlement Body held within 60 days from the announcement. Once adopted, China is obliged to make corrections in line with the recommendations.
China has imposed anti-dumping duties since 2019, claiming domestic industries are being harmed by the dumping of stainless-steel products imported from Japan, South Korea, Indonesia and the European Union. In 2021, a panel was set up at the WTO at the request of Japan, and hearings were being conducted. Japan had demanded the removal of the measures, claiming that China's certification and investigation procedures were flawed and violated the GATT (General Agreement on Tariffs and Trade) and the Anti-Dumping Agreement.

Anti-dumping duties apply to stainless steel slabs, hot-rolled stainless steel coils, and hot-rolled stainless steel sheets. Slabs are semi-finished products, hot-rolled coils are used for automobile parts and home appliances, and hot-rolled steel sheets are used for ships, bridges, and industrial machinery. Each has different shapes, uses, customers, and price ranges, but China ignores product differences and adds them up based on the calculated average price. Japan has argued it makes a meaningless assessment.

METI website:
https://www.meti.go.jp/english/press/2023/0619_001.html