Connect with us

Asia

Sanae Takaichi secures historic supermajority in Japan’s landmark winter election

Published

on

Sanae Takaichi’s governing coalition secured a crushing victory in Sunday’s lower house elections, granting the Prime Minister a commanding “supermajority” with 352 seats. The results signal a definitive shift in Japan’s regional posture, as the leader looks to maintain a hawkish stance toward China in alignment with US policy, bolster national defense, and move away from the country’s traditional pacifist framework.

Takaichi, Japan’s first female leader who cites the United Kingdom’s “Iron Lady” Margaret Thatcher as her primary inspiration, led the Liberal Democratic Party (LDP) to 316 seats in the 465-member House of Representatives, according to final counts released by public broadcaster NHK early Monday.

While the LDP easily cleared the 233-seat threshold required for a simple majority on its own, its coalition partner, the Japan Innovation Party, secured an additional 36 seats.

With a combined 352 seats, Takaichi now holds a supermajority in the lower house. This status effectively streamlines her legislative agenda, allowing the lower house to override the upper chamber where necessary, despite lacking a majority there.

The results mark the party’s most significant electoral triumph since its founding in 1955, surpassing the previous record of 300 seats set in 1986 under the late Prime Minister Yasuhiro Nakasone.

“This election centered on major policy shifts—particularly a significant transformation in economic and fiscal policy, alongside the strengthening of our security posture,” Takaichi said in a televised interview as the results were finalized. “These are policies that have faced serious opposition. If we have received the support of the people, we must dedicate our full strength to these issues.”

Conversely, the new opposition alliance—comprised of the LDP’s former, more dovish coalition partner Komeito and the liberal-leaning Constitutional Democratic Party of Japan—is expected to see its pre-election strength of 167 seats slashed by half.

First to congratulate: The US, India and Taiwan

US President Donald Trump congratulated Takaichi’s coalition on Sunday.

“Congratulations to Prime Minister Sanae Takaichi and her Coalition on a BIG VICTORY,” Trump posted on his Truth Social platform. “It was an honor to support you and your coalition. I wish you great success as you implement your conservative agenda based on the principle of peace through strength.”

Trump had voiced his explicit support for Takaichi on Friday, describing her as a “highly respected and very popular leader.” He added that Takaichi’s “brave and smart decision” to call the election had clearly paid off.

Indian Prime Minister Narendra Modi also extended his congratulations. “Congratulations Sanae Takaichi on your historic victory in the House of Representatives elections!” Modi posted on social media Sunday, adding, “I am confident that under your capable leadership, we will further advance the India-Japan friendship.”

Taiwanese leader William Lai Ching-te also shared a message on social media offering his “heartfelt congratulations.”

The 64-year-old Takaichi called the rare winter snap election following her ascent to the LDP leadership late last year, seeking to capitalize on rising personal approval ratings.

While voters were drawn to her outspoken and industrious image, her promises of tax cuts have caused some unease in financial markets. Simultaneously, her ultra-nationalist tendencies and emphasis on security have strained relations with an increasingly assertive China.

Weeks after taking office, Takaichi sparked the most significant dispute with Beijing in a decade by publicly discussing how Tokyo might respond to a potential Chinese intervention in Taiwan.

In November, her suggestion that Japan could involve itself in the event of a Chinese attack on Taiwan escalated tensions further. Beijing responded by imposing restrictions on the export of rare earth elements to Japan and issuing travel warnings for the country.

Beijing has continued to emphasize its plans for reunification with Taiwan—which the United Nations recognizes as part of China—into 2026. While many nations, including the US, do not recognize Taiwan as an independent state, Washington continues to provide arms to Taiwan and support separatist trends against China. Takaichi’s alignment with US interests in this dispute has drawn the ire of Beijing.

A strong electoral mandate is expected to accelerate Takaichi’s plans to strengthen Japan’s defenses—a move Beijing characterizes as an attempt to revive the country’s militaristic past.

“Beijing will not welcome Takaichi’s victory,” said David Boling, a director at the Asia Group, which advises firms on geopolitical risk. “China is now faced with the reality that she is firmly established and that their efforts to isolate her have failed.”

Takaichi captured young voters

Takaichi managed to partially reverse the party’s fortunes by building a massive social media following and forging a connection with younger voters.

“Takaichi’s personal appeal will allow LDP candidates, who might otherwise struggle to get elected, to win seats through her endorsement,” Levi McLaughlin, a professor at North Carolina State University, told This Week in Asia.

The Prime Minister has also triggered an unexpected youth-driven trend known as sanakatsu—roughly translated as “Sanae craze”—which has led to high demand for merchandise she uses in parliament, such as her handbag and pink pens.

“She beats the drum. She has an interest in Korean products, music, and the entertainment sector. Unlike the rest of her party, she is active on social media,” said Mark Cogan, an associate professor at Kansai Gaidai University.

“She is markedly different from her rather stagnant peers,” Cogan noted, adding that this distinctiveness helped her weather various political storms, including diplomatic tensions with Beijing.

However, Cogan questioned the longevity of this popularity: “The real question is how long ‘Sanae craze’ will last. Is this a case of young people being swept up by something new or different while ignoring policy positions that do not always align with their own interests?”

The election was only the third general election in the post-war era to be held in February, as polls are typically conducted during more temperate months.

What challenges await Takaichi?

Following the dissolution of the lower house on January 19, a special session must be convened to officially elect the prime minister. This session is expected to take place on February 18. Takaichi’s immediate priority will be passing the annual budget for the fiscal year beginning in April.

While budget deliberations usually take about two months, the process was disrupted by the snap election. Takaichi is expected to prepare a provisional budget to ensure Japan’s financial operations continue through the first weeks of the fiscal year.

Another priority will be materializing her proactive fiscal policy. One of her core campaign messages was to increase domestic investment by targeting sectors with high growth potential. She also spoke of building a nation “resilient to currency fluctuations.” A framework for basic economic and fiscal policy, expected around June, is likely to outline measures to attract private investment back to Japan.

On the diplomatic front, Takaichi’s management of relations with both the US and China will be decisive and challenging.

She is expected to focus on reaffirming the robust Japan-US partnership. Takaichi will travel to the US on March 19 to meet with Trump at the White House, aiming to further solidify their strong relationship.

How Takaichi will navigate Japan-China relations remains uncertain. Trump is scheduled to meet with Chinese leader Xi Jinping during a visit to China in April, and the US President is thought to want to move relations with China to a more “stable” level.

Despite the strong mandate from voters, Tobias Harris of Japan Foresight notes that significant hurdles remain.

“The markets are watching her every move closely,” Harris said. “The truth is, it’s impossible to predict what will happen when the meeting between Trump and Xi takes place. If the US and China move closer while Japan and China do not move in the same direction, it leaves Takaichi in a delicate and uncomfortable position.”

“The issue of defense spending will be extremely complex,” Harris continued. “There is a consensus on spending more, but no consensus on how to finance it. This will pose a serious challenge, as will managing a larger LDP. She will have a strong base, but that doesn’t make these problems disappear; it only gives her more room to maneuver while addressing them.”

Asia

Pentagon plans covert spy ring for economic war on China, report says

Published

on

The US Department of War (Pentagon) is reportedly planning to establish an extensive network of deep-cover agents to wage economic warfare against China and other adversaries of the US.

According to a report by The Washington Post citing six sources familiar with the initiative, the plan has not yet been put into effect. The newspaper reported that the initiative remains at the planning stage. The Pentagon, however, denies that any such initiative exists.

The report said the operatives would pose as entrepreneurs or private sector employees while concealing their ties to the US government. The network’s mission would be to gather economic intelligence and counter China.

The programme is led by Tom Rakusa, who spent 39 years at the CIA. Rakusa serves as a senior adviser to Deputy Secretary of Defence Steve Feinberg.

The proposed spy network is seen as part of a broader policy by the Donald Trump administration to sharpen economic competition with other countries.

The US is already resorting to tariffs, export controls, and investment in strategic sectors, alongside expanding its economic intelligence gathering.

According to The Washington Post, the new initiative demonstrates the Pentagon’s growing influence under the Trump administration. The department is currently seeking a record budget of $1.5 trillion.

Trade war flares up again with Trump’s return to the White House

The trade friction between the US and China flared up again following Donald Trump’s return to the White House. In April 2025, Washington raised tariffs on Chinese goods to as much as 145%, and Beijing retaliated with tariffs of up to 125%.

In May, US Secretary of State Marco Rubio described China as the primary geopolitical challenge facing Washington. Rubio said that to avoid war, the two sides needed to manage their conflict of interests.

In July, Chinese expert Zheng Yongnian did not simply warn that underestimating the US could prove to be a “fatal mistake”; he stated it explicitly.

According to Zheng’s assessment, the US maintains its primacy through the role of the dollar, its military superiority, and its technological advantages.

Even so, the two sides agreed in June to declare a truce and lower tariffs. In autumn 2026, the US and China extended their trade truce until 10 January 2027.

US Treasury Secretary Scott Bessent said the extension would give the parties more time to discuss economic issues.

Trade deals do not eliminate the strategic contradictions between the two countries. Financial Times columnist Rana Foroohar likened the race between the two nations for commercial, technological, and geopolitical influence to the 19th-century “Great Game” between the Russian and British empires.

Foroohar cited China’s standing in shipbuilding and commercial maritime transport, as well as its expanding footprint in overseas ports, among its key advantages.

Continue Reading

Asia

Japan plans curbs on short-term home sales to cool urban prices

Published

on

Japan’s ruling Liberal Democratic Party (LDP) plans to restrict short-term property trading to rein in surging home prices in major urban centres, particularly Tokyo.

Led by Prime Minister Sanae Takaichi, the party aims to make support for working households a core priority ahead of local elections scheduled for April next year.

The LDP’s research commission on housing and land policy met on Wednesday to discuss the issue.

According to a report by the Nikkei Asia newspaper, Commission Chair and LDP lawmaker Midori Matsushima said at the opening of the meeting: “Prices of newly built condominiums across Tokyo’s 23 wards have doubled over the past decade. We must work on measures ensuring that people who wish to live in these homes can actually afford to buy them.”

Homeownership in the capital has become virtually unattainable for broad segments of the population. According to data from the Real Estate Economic Institute, the average sale price of a newly built condominium in Tokyo’s 23 wards rose %18.5 in fiscal 2025 compared with the previous year, reaching 137.84 million yen (around $872,000).

Meanwhile, statistics from the Ministry of Labour show that the average annual income of a full-time worker in the capital remained at 6.78 million yen in fiscal 2025. This widening gap between incomes and residential property prices is directly shaping political priorities.

During its campaign for the House of Representatives election in February, the LDP pledged to curb speculative transactions across metropolitan Tokyo and other regions. Earlier this month, a party project team focused on policies concerning foreign nationals also submitted a recommendation urging the government to introduce immediate tax measures against rising home prices.

Under current legislation, profits realized from properties sold within five years of acquisition are classified as “short-term capital gains”. These returns face a tax rate approaching %40, including income tax and local inhabitant tax.

Although this rate is twice the approximately %20 levied as “long-term capital gains” tax on properties held for more than five years, several party members argue it remains insufficient to deter speculation. Calls to tighten the framework may be considered as part of the annual tax reform package to be drafted in December alongside the LDP’s coalition partner, the Japan Innovation Party.

The ruling bloc wants to present concrete housing pledges to voters heading to the polls in April across numerous urban centres, including 22 of Tokyo’s wards where local assembly terms expire.

“We need to support families with children, who are typically at the stage of purchasing a home,” a senior LDP official said.

Opposition parties are also preparing alternative proposals that target not only prospective homebuyers, but also residents forced into the rental market by high property prices and now affected by escalating rents.

Tax steps take precedence over limits on foreign buyers

Several countries seeking answers to housing affordability pressures have imposed direct restrictions on foreign purchasers. In South Korea, real estate policies played a major part in the declining public approval ratings of President Lee Jae Myung.

In August 2025, authorities in Seoul introduced an approval requirement for foreign nationals buying homes in the capital and adjacent areas, while also mandating that buyers reside in the properties for at least two years.

Canada and Australia have enacted temporary bans on foreign residential purchases, while Singapore levies a %60 additional stamp duty on foreign buyers.

The role of overseas investors in Japan’s property market also drew debate during the February election. However, restrictions aimed directly at foreign nationals are viewed as potentially conflicting with international trade and services agreements.

Consequently, rather than imposing restrictions based on the nationality of buyers, the government is discussing tax measures aimed at speculative real estate deals, such as rapid resales.

Fears that sharp market measures could shake regional banks

Concerns have also surfaced that aggressive steps to force down prices could harm the wider national economy.

A senior LDP tax official cautioned that a steep drop in land prices could weaken local financial institutions, warning: “We must consider the impact on regional banks.”

The real estate sector accounts for roughly %18 of total lending by Japanese banks. This proportion sits well above the %10 level recorded during Japan’s bubble economy of the mid-to-late 1980s.

At certain regional banks, property lending accounts for nearly half of total loan portfolios.

According to March 2025 data from the Financial Services Agency, approximately one-quarter of all loans extended by regional banks to the real estate sector are concentrated directly in Tokyo’s five central wards.

Buoyant asset valuations, supported in part by rising stock indices, have underpinned strong public approval for the Takaichi administration. Observers note that property interventions designed to cool the market could drag down equity prices and weaken the government’s standing.

A senior official on the LDP research commission stressed that decision-makers must act with caution regarding the scope and timing of any measures intended to bring price increases under control.

Continue Reading

Asia

South Korea plans $120B spend on eight US nuclear power plants

Published

on

South Korea will spend $120 billion to construct eight nuclear power plants in the US under an agreement that provides for $350 billion in investments in exchange for lower tariffs.

The South Korean government also announced that Seoul and Washington will begin examining a liquefied natural gas (LNG) project in Alaska comprising a large-scale pipeline to transport natural gas from the north of the state to the south, alongside the construction of an LNG terminal for exports overseas.

Seoul stated that a decision regarding the LNG project will be made following a commercial feasibility study. However, US President Donald Trump said that South Korea would invest $54 billion in the project, pointing to an apparent lack of full coordination between the two sides on the matter.

Trade and Industry Minister Kim Jung-kwan said in a statement: “This announcement opens a new horizon of cooperation where the two countries join forces to develop joint commercial ventures in strategic areas directly linked to economic security and future sectors such as artificial intelligence, nuclear energy, and LNG.”

“We will adhere to the principle of prioritising national interests and investing solely in commercially viable projects,” Kim said.

Speaking at the White House, Trump characterised South Korea’s plans as “one of the largest energy infrastructure investments in American history”.

The announcement followed a meeting between Trump and South Korean President Lee Jae Myung roughly one year ago at the APEC Economic Leaders’ Meeting held in South Korea, where they agreed on the creation of a $350 billion investment fund.

Under that agreement, $150 billion was allocated to the shipbuilding sector and $200 billion to other sectors. In return, the US announced it would reduce tariffs imposed on goods imported from South Korea from 25% to 15%.

Under the nuclear power project, South Korea’s state-controlled utility will build two plants in the US, while Pennsylvania-based Westinghouse Electric will construct six plants.

According to the South Korean government, this will mark the first instance in which a foreign country builds its own nuclear power plants in the US.

South Korean firms are also evaluating the possibility of acquiring a stake in Westinghouse as part of negotiations over sharing profits generated by the project.

South Korea additionally announced that it will build a $22.3 billion natural gas-fired power plant in Texas with a capacity of 6,472 megawatts.

The facility will be designed to supply electricity directly to nearby data centres. The project’s first phase is targeted to begin commercial operations in 2029, with full-capacity operations slated for 2032.

Seoul also disclosed that it had agreed to allow the US to receive 50% of the profits generated by the projects until South Korea recoups all of its investments.

After South Korea fully recovers its total investment amount, 90% of the profits will go to the US.

Continue Reading

MOST READ

Turkey