- The Five LDP Presidential Candidates’ Stance Vis-à-vis Trump Administration
President Trump has been pressing its allies and partners to increase defense spending.
The Japanese government has already announced plans to raise security-related expenditures to 2% of GDP, but the Trump administration might demand even further increases.
According to Nikkei, following are the individual stances of the five LDP Presidential candidates that were revealed a Japan National Press Club debate on the 24th
l Former Economic Security Minister Takayuki Kobayashi: “It is unreasonable to raise spending simply because others demand it, but 2% is far from sufficient.”
l Chief Cabinet Secretary Yoshimasa Hayashi: “There may be cases where more than 2% will be necessary.”
l Former Economic Security Minister Sanae Takaichi: “I will not fixate on a specific percentage. We must carefully build up costs for R&D and equipment procurement.”
l Agriculture Minister Shinjiro Koizumi: “steady realization of 2%,” “It should not be about the number alone.”
l Former LDP Secretary-General Toshimitsu Motegi: called for strengthening defense while also pledging “zero tax hikes.”
Another key issue will be whether the next leader can build a personal relationship of trust with U.S. President Donald Trump, who is expected to visit Japan in late October.
l Motegi, who negotiated Japan-U.S. trade talks as Minister for Economic Revitalization, recalled, “I was called a ‘tough guy’ by Mr. Trump while still concluding the deal,” emphasizing his personal ties. Motegi has indicated willingness to pursue further negotiations with the U.S. over tariff reductions.
l Hayashi, who has served as foreign minister, also expressed confidence, saying, “I’ve come to understand much of Washington’s playbook.” Hayashi, who once chaired the Japan-China Parliamentary Friendship Association, said he would adopt a “case-by-case” approach in top-level diplomacy with Beijing.
l Kobayashi also expressed intentions to seek tariff cuts. Kobayashi, representing the conservative wing, argued that Japan’s National Security Strategy should be revised swiftly, and pledged that “leaders themselves must meet face-to-face with neighboring countries with openness.”
l Takaichi, known for her hawkish stance on China, has advocated the establishment of a new “National Intelligence Agency” to strengthen information-gathering across diplomacy and security.
l Koizumi, mindful of economic security, stated the need to “build supply chains that are not overly dependent on China.”
As of today, Koizumi and Takaichi are leading the other three candidates, it will be difficult for any of the candidates to win an outright majority in the October 4 vote, and it is expected that the LDP president will be decided in a runoff between the top two candidates on the same day.
2. PM Ishiba To Conclude His One-Year Of Diplomatic Activity By Visiting South Korea
Prime Minister Ishiba visited Busan of South Korea on September 30 and held talks with President Lee Jae-myung.
According to Yomiuri, the two leaders agreed to steadily develop Japan–South Korea relations and to invigorate reciprocal visits.
They also agreed to continue inter-agency consultations on common social issues such as population decline and excessive concentration in the capital region.
This was the Prime Minister’s first visit to South Korea since taking office.
As he has announced his resignation, it is expected to be his final overseas trip.
Ahead of the launch of a new administration, his aim is to reaffirm the positive momentum in bilateral relations and to solidify the practice of regular summit exchanges.
At the beginning of the meeting, the Prime Minister noted that October 1 would mark one year since his inauguration, saying, “I deeply feel the significance of concluding my diplomacy with a meeting with the President.” President Lee, who has already met with Ishiba three times in less than four months since his inauguration in June, said, “The more difficult the world becomes, the more important exchanges between neighbors are. I hope to develop our relations together through continued visits.”
The two leaders discussed international affairs, including the Indo-Pacific and the Palestinian issue, confirming continued communication on security matters and cooperation toward the “complete denuclearization” of North Korea.
They also agreed to convene the Japan–Korea Joint Committee on Science and Technology Cooperation, which has not been held since 2009, with the aim of accelerating collaboration in the field of artificial intelligence (AI).
3. Nippon Steel To Launch The First Capital Investment In U.S. Steel
NHK reported that Nippon Steel announced that U.S. Steel, which it acquired in June this year, has approved an investment plan of $300 million (over 44 billion yen) in two domestic manufacturing sites in the United States.
Nippon Steel plans to invest a total of $11 billion (approximately 1.6 trillion yen) through U.S. Steel by 2028, and the key focus will be whether the company can generate sufficient returns to match such a massive investment.
In June, Nippon Steel fully acquired U.S. Steel by purchasing 100% of its common shares, as part of its strategy to expand business in the U.S. market, where significant growth is expected.
The company announced that at a board meeting held this week, U.S. Steel approved the $300 million investment plan for two manufacturing facilities in the United States.
Specifically, the plan includes upgrading equipment at the company’s largest manufacturing site in Indiana to expand production of automotive-related products, as well as building new facilities at a Pennsylvania plant to recycle “slag,” a by-product of the steelmaking process.
This investment marks the first step in Nippon Steel’s broader plan to invest $11 billion (approximately 1.6 trillion yen) by 2028.
Regarding the acquisition of U.S. Steel, the U.S. government has acquired one “golden share,” granting it veto rights over key management decisions and thereby giving it a degree of influence.
Amid this, Nippon Steel aims to steadily expand its business while securing the understanding of the U.S. government, with the central question remaining whether such large-scale investments will deliver returns.
Chief Cabinet Secretary Yoshimasa Hayashi commented at a press conference in the morning:
“While I refrain from commenting on individual corporate management matters, this investment is a symbolic case that contributes to improving the global investment environment.
We recognize that it will strengthen the economic relationship between Japan and the United States and further deepen the partnership between our two countries.”
- SoftBank Group Unveiled Concrete Plans Of Its Investment In The U.S.
NHK reported that SoftBank Group, which had previously announced its intention to make massive infrastructure investments in the United States related to AI, has unveiled concrete plans to establish five data center sites.
The company had stated that it would invest more than 70 trillion yen over the next four years in partnership with major U.S. corporations, and is now moving forward with specific initiatives.
In January this year, SoftBank Group, together with U.S.-based OpenAI and software giant Oracle, launched a project called “Stargate,” aimed at investing $500 billion (over 70 trillion yen) in AI-related infrastructure development in the United States.
The three companies announced that, as part of the project’s concrete plans, they will establish five data center sites.
SoftBank Group will be involved in the plans for two of these centers, located in Ohio and Texas.
The other three centers will be planned by OpenAI and Oracle, and combined with other sites already under development, the total amount of concrete investment plans will reach $400 billion (approximately 59 trillion yen).
The three companies also stated that they will announce additional plans in the future, steadily moving forward with the realization of the large-scale Stargate project.
SoftBank Group Chairman and CEO Masayoshi Son commented, “We believe AI will open the way to a new era that advances humanity.”