- Australia Announced Its Decision on New Naval Vessel Based on Modified Japanese Mogami-Class Frigate
On August 5, the Japanese and Australian governments jointly announced that Australia has selected a new naval vessel based on a modified version of Japan’s Maritime Self-Defense Force (MSDF) Mogami-class frigate, Yomiuri reported.
This ship will serve as the foundation for the Royal Australian Navy’s planned fleet upgrade.
For Japan, this marks the second case of exporting completed defense equipment, following the export of air defense radars to the Philippines.
At a press conference held on the 5th, Japanese Defense Minister Nakatani welcomed the decision, stating that it "reflects trust in Japan’s advanced technology and the importance of Japan-Australia interoperability." The Australian government also issued a statement, noting that the Japanese proposal "best meets the Australian Defence Force’s capability requirements and strategic needs."
The modified version of the Mogami-class frigate, built by Mitsubishi Heavy Industries, retains the stealth features of the original model.
It includes partial automation of operations such as ship handling, allowing it to be operated by about 90 personnel—roughly half the typical crew size of a standard escort vessel.
Compared to the original Mogami-class, the upgraded design has a larger hull and can carry more vertical launch systems (VLS) for anti-air missiles.
Its compatibility with U.S.-made missiles, a key advantage given Australia’s alliance with the United States, is believed to have contributed significantly to the decision.
Australia plans to acquire a total of 11 ships, with the project estimated to cost up to A$10 billion (approximately ¥950 billion).
According to the Australian government, the first three vessels will be built in Japan, and the remaining ships will be constructed in Australia.
The first ship is expected to be delivered in 2029, with operations beginning in 2030.
Japan’s export of completed defense equipment is restricted to cases that fall under the five categories stipulated by the operational guidelines of the Three Principles on Transfer of Defense Equipment and Technology: rescue, transportation, warning, surveillance, and minesweeping.
Because direct export of heavily armed escort vessels is prohibited, the Japan-Australia arrangement takes the form of joint development.
As U.S. allies, Japan and Australia have been deepening security cooperation in recent years through joint exercises and other initiatives, with China’s growing maritime assertiveness in mind.
By adopting Japan-designed vessels, Australia will also be able to cooperate with Japan in terms of operations, maintenance, and servicing.
In February 2024, the Australian government announced its plan to replace aging naval ships with new vessels.
Four countries—Japan, Spain, South Korea, and Germany—were initially considered as candidates.
By November of the same year, the selection had been narrowed down to Japan and Germany.
- Japan to Hold First-Ever Justice Ministers’ Meeting with Five Central Asian Nations in 2026
The Japanese government is in the final stages of coordination to host its first justice ministers’ meeting in the next year with five Central Asian countries, namely, Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan.
The aim is to promote shared values such as the rule of law and respect for fundamental human rights in a region where China and Russia are expanding their influence.
In late July, Japan also signed its first judicial cooperation memorandum with Fiji, marking a significant step in the Pacific Island region.
In late April through May, Justice Minister Ken S. Suzuki visited Uzbekistan and Kyrgyzstan, where he and his counterparts agreed to establish a new dialogue framework involving all five nations.
The first ministerial meeting is expected to take place sometime after spring next year, with the aim of making it a regular forum.
The agenda will likely include legal system development support, capacity-building for judicial personnel, and other cooperative initiatives.
Central Asia holds geopolitical significance as it lies between China and Russia and is rich in natural resources.
Through legal cooperation with the five countries, the Japanese government seeks to promote the rule of law, contribute to regional stability, and strengthen bilateral ties.
The United States has also stepped up engagement, with then-President Joe Biden holding the first-ever summit with the five Central Asian nations in September 2023.
Former Prime Minister Fumio Kishida also coordinated a summit scheduled for August 2024.
In recent years, China has increased its influence in Pacific Island nations by investing heavily in infrastructure and expanding police cooperation.
These island nations lie along critical sea lanes connecting resource-rich Australia with Japan and the United States, making them strategically vital.
Japan hopes to stabilize political conditions and strengthen ties with these nations through legal collaboration.
In July 2023, Japan also held a special meeting of justice ministers with members of the Association of Southeast Asian Nations (ASEAN).
The government is expected to continue reinforcing judicial cooperation with emerging and developing countries, commonly referred to as the Global South.
3. Japanese Government to Build Gallium Supply Chain Outside China, Partnering with U.S. and Australia
The Japanese government is set to launch a new initiative to secure a stable supply chain for the rare metal gallium, which is currently heavily dependent on imports from China.
In collaboration with U.S. and Japanese firms, Japan will establish production facilities in Australia, from which gallium will be exported to Japan.
Gallium is a critical mineral used in the manufacture of semiconductors and other technologies.
However, with China—virtually the world’s sole producer—tightening export controls, stable procurement has become increasingly difficult.
Japan Oil, Gas and Metals National Corporation (JOGMEC), trading giant Sojitz Corporation, and U.S. aluminum major Alcoa will jointly establish a venture in Australia, with production scheduled to begin in 2026. Alcoa already operates an aluminum refinery in Australia.
As gallium can be extracted during the aluminum refining process, the joint venture will install new equipment specifically for gallium production.
The goal is to reach over 55 tons per year by 2028—equivalent to Japan’s current annual imports from China.
In 2021, Japan used 167 tons of gallium, of which 97 tons were imported.
Despite diversification efforts, 55 tons—roughly 60% of imports—still came from China.
Since China tightened export controls on gallium in August 2023, exports to Japan have dropped dramatically by 80–90%, down to around 10 tons.
Japanese component manufacturers that rely on gallium are currently sustaining production through recycling and existing inventories.
China maintains that its export control policy "does not target any specific country or region," but many believe it to be a countermeasure against export restrictions imposed by Japan, the U.S., and the EU in the advanced semiconductor sector.
The outlook for stable supply has become more uncertain due to ongoing U.S.-China trade tensions.
In April 2025, China announced new export restrictions on rare earth elements, as a retaliatory move against the “reciprocal tariffs” initiated by the Trump administration.
Although both governments agreed in late July to temporarily suspend such measures, future escalation remains unpredictable.
Critical minerals like gallium involve high Chinese market share not only in mining, but also in refining and processing, making them a persistent economic security risk.
The Japanese government intends to accelerate the development of a supply chain not reliant on any one country, while supporting related industries.
- Japan's Population Sees Record Decline, While Foreign Resident Numbers Reach All-Time High
On August 6, Japan’s Ministry of Internal Affairs and Communications announced the domestic population as of January 1, based on the Basic Resident Register.
The number of Japanese nationals stood at 120,653,227, a decrease of 908,574 people (0.75%) from the previous year — marking the largest decline in both absolute number and rate since the survey began in 1968.
The number of foreign residents living in Japan was 3,677,463, the highest ever recorded since the ministry began collecting such data in 2013.
The number rose by 354,089 (10.65%) from the previous year, also the largest increase to date.
The foreign resident population includes only those with a residence status of three months or longer.
When combining Japanese nationals and foreigners, the total population of Japan was 124,330,690, down 554,485 people (0.44%) from the previous year.
The proportion of foreigners in the total population reached 2.96%, the highest ever.
The Japanese population has been decreasing for 16 consecutive years since its peak in 2009.
The main cause is the accelerating trend of a declining birthrate and aging population.
In 2024, the number of Japanese births reached a record low of 687,689, while the number of deaths hit a record high of 1,599,850.
The “natural decrease” — when deaths outnumber births — has continued to widen for 17 consecutive years.
In contrast, the foreign population, which had temporarily declined during the COVID-19 pandemic, has been increasing since 2023.
For three consecutive years, the growth rate has exceeded 10%.
This is largely due to “social increase”, where the number of foreign entrants exceeds the number of those leaving the country.
In 2024, 661,809 foreigners moved into Japan, marking a new record.
Additionally, the number of births among foreign residents was also the highest ever at 22,738, and the “natural increase” — where births exceed deaths — among foreigners reached a record high of 13,665.
Looking at the population by prefecture, only Tokyo and Chiba experienced population growth.
The remaining 45 prefectures saw a decline. The prefecture with the highest rate of decline was Akita at 1.84%, followed by Aomori (1.64%) and Kochi (1.59%).
Declines were particularly notable in the Tohoku and Shikoku regions.
5. ANA Holdings to Launch Air Taxi Business with U.S. Company Joby Aviation by FY2027
On August 5, ANA Holdings (ANA HD) announced that it will establish a joint venture with U.S.-based Joby Aviation to commercialize air taxis, a next-generation mobility service that uses “flying cars” to transport passengers for a fee.
The companies aim to begin commercial operations by fiscal year 2027, with a goal of deploying over 100 aircraft in Japan.
A prototype aircraft is already undergoing flight testing in the U.S., according to Joby Aviation.
In February 2022, ANA HD signed a memorandum of understanding with Joby and Toyota Motor Corporation.
To secure takeoff and landing sites, ANA has also partnered with companies such as Nomura Real Estate and AEON Mall.
Starting in FY2027, the companies aim to expand services not only in the Tokyo metropolitan area, but also in Osaka and other regions nationwide.
From October 1 to 13, a manned demonstration flight will be conducted using a full-scale aircraft at the Osaka-Kansai Expo site, and the public will be invited to view it.
Flying cars can take off and land vertically like a helicopter and fly horizontally like an airplane by adjusting the direction of their propellers.
Since they are electric-powered, they are much quieter than helicopters and require smaller landing zones, making them well-suited for urban operations.
The aircraft to be introduced from Joby Aviation is a five-seater (one pilot and four passengers).
It has a top speed of 320 km/h (199 mph) and a range of 160 km (99 miles)—enabling it to travel between central Tokyo and Narita Airport in approximately 10–20 minutes.
In the Tokyo area, routes are being considered to connect central Tokyo with Narita and Haneda airports, as well as Yokohama, using a ride-sharing model.
Fares have not been finalized, but if four passengers share a ride, the per-person fare is expected to be roughly equivalent to a regular taxi fare, potentially making it cheaper than a typical helicopter ride.
ANA is not alone in exploring the air taxi market.
Soracle, a Tokyo-based joint venture between Japan Airlines and Sumitomo Corporation, plans to begin sightseeing flights and point-to-point operations using aircraft from U.S. firm Archer Aviation in the Osaka Bay area as early as 2027.
Meanwhile, startup SkyDrive Inc., based in Aichi Prefecture, is working with JR Kyushu and others to launch operations in Oita Prefecture in fiscal year 2028.