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Japan Digest #410

  1. PM Ishiba And His Party Face An Uphill Battle For The Upcoming Election

 

According to a public opinion poll conducted by NHK over three days starting July 4, Ishiba Cabinet’s approval rating dropped by 3 points compared to last month's survey, reaching 31%, the lowest level since the Cabinet was formed in October 2024.

The Cabinet’s disapproval rating increased by 4 points to 50%.

 

When asked whether they planned to vote in the House of Councillors election scheduled for July 20, 79% said they would definitely or plan to vote, and another 6% said they already voted in advance, while 13% responded that they are not sure or will not vote.

When asked how interested they are in this election, 75% said they are very or somewhat interested, while 20% said they are not.

Regarding the most important issue when deciding whom to vote for in this election (from a list of seven options), the results were as follows:

 

Countermeasures for rising rice and general prices       28%

Social security              28%

Declining birthrate        28%,

Politics and money       9%

Response to U.S. tariff measures         9%

Diplomacy and national security           8%,

Policies related to foreigners                6%

Selective married surname system       1%.

 

When asked if they were concerned about the impact of U.S. tariff measures under the Trump administration on the Japanese economy, 76% responded that they are very or somewhat concerned, while 15% said they are not.

 

  1. Ishiba Administration To Establish A Command Center To Respond Crimes And Problems Involving Foreign Residents

 

The Japanese government has decided to establish a new secretariat early next week to serve as a command center for strengthening responses to crimes and problems involving foreign residents.

Centered around this new organization, the government will review relevant systems and regulations through cross-ministerial collaboration.

According to government officials, the new organization will be set up within the Cabinet Secretariat.

It will oversee a unified review of areas such as immigration and residency status management under the Immigration Services Agency, social security systems under the Ministry of Health, Labour and Welfare, and tax management under the jurisdiction of the Ministry of Finance.

Amid Japan’s rapidly declining population, the government views the infusion of overseas vitality as essential to sustaining economic growth.

During the July 8 cabinet meeting, the Prime Minister is also expected to instruct relevant ministers to take steps toward realizing an "orderly society of coexistence with foreigners."

While the number of foreign residents and tourists continues to increase, there has also been a surge in incidents and accidents involving foreigners, as well as disputes with local residents caused by disturbances such as noise and poor driving manners.

Improper use of the national health insurance system by foreign nationals has also been pointed out.

Against the backdrop of growing public concern, political parties such as the Liberal Democratic Party, the Democratic Party for the People, and the Sanseito are calling for stronger regulations and legal reforms related to foreign nationals in the upcoming House of Councillors election.

In contrast, the Constitutional Democratic Party and the Japanese Communist Party emphasize the importance of coexistence with foreigners, making this a rapidly emerging issue in the election campaign.

With municipalities facing increasing burdens and public anxiety on the rise, the government has concluded that “efforts to tighten rules and reform relevant systems are indispensable,” according to a senior official.

 

3.  Japan, UK And Italy To Begin The Joint Development Of The Next-Generation Fighter Jet

 

On July 7, Japanese Defense Minister Nakatani held a virtual meeting with UK Defense Secretary John Healey and Italian Defense Minister Guido Crosetto.

The three ministers agreed to advance the joint development of a next-generation fighter jet by Japan, the UK, and Italy.

Regarding this collaborative development, a joint venture named "EdgeWing"—responsible for design and other tasks—was established on June 20, with investments from companies in all three countries.

The ministers confirmed their intention to accelerate efforts toward concluding a contract between the governmental oversight body "GIGO" and EdgeWing within the year.

The signing of this contract is expected to simplify the operational processes involved in the joint development.

 

4.  Nippon Steel Set A Goal To Catch Up With ArcelorMittal After Completing The Acquisition Of U.S. Steel

 

Mr. Eiji Hashimoto, Chairman and CEO of Nippon Steel, spoke with the Yomiuri Shimbun about the company’s vision following its acquisition of U.S. Steel, outlining the following roadmap.

In June, Nippon Steel completed the acquisition of U.S. Steel, approximately a year and a half after the initial announcement.

The company plans to invest $11 billion (about 1.6 trillion yen) by 2028 to modernize and upgrade aging production facilities.

U.S. Steel currently produces approximately 11 million tons of crude steel annually in the U.S., holding a domestic market share of around 15%.

Nippon Steel will provide U.S. Steel with advanced manufacturing technologies, including for high-performance electrical steel sheets used in large transformers and EV motors, to expand its product portfolio. The company also aims to improve yield and reduce costs by enhancing production efficiency.

While 40 engineers have already been dispatched to the U.S. as the first group, he indicated that further personnel increases will be necessary to achieve greater capacity and product enhancement.

Nippon Steel aims to raise its global crude steel output to 100 million tons, positioning itself as the world’s leading steelmaker.

Hashimoto acknowledged that ArcelorMittal of Europe is currently the “strongest in real terms”, adding, “We must close the gap and surpass them.”

In India, Nippon Steel acquired a local steelmaker jointly with ArcelorMittal in 2019.

Moving forward, the company plans to increase production by 15 million tons and construct one of the world’s largest steel plants.

The company will also expand production capacity in markets where it has independently entered, such as Europe and Thailand.

The U.S. Steel plant in Slovakia has the potential to more than double its current capacity, and in Thailand, Nippon Steel will continue investing in facilities with the goal of securing a majority market share.