• Japanese Prime Minister Sanae Takaichi commits to making Japan “strong and prosperous” while addressing security concerns from China.
• Takaichi emphasizes revising Japan’s defense strategy amid growing military activities from China and North Korea.
• Economic initiatives will focus on stable growth without reckless fiscal policies as she plans to address inflation impacts.
• Increased defense spending to 2% of GDP is expected as Japan seeks to strengthen military capabilities.
• Takaichi aims to ease restrictions on military exports and enhance cooperation with allies like the US.

In her first address to parliament since winning a landslide victory in recent elections, Japanese Prime Minister Sanae Takaichi emphasized her commitment to making Japan "strong and prosperous." Takaichi highlighted the growing threat posed by China, particularly its military activities in the East and South China Seas, and expressed her intention to strengthen Japan's national defense strategy in light of this challenge, stating, "Japan faces its most severe and complex security environment since World War II" according to South China Morning Post and Reuters.

Takaichi plans to revise Japan's three core defense policy documents within the year to formulate a new strategy and also aims to accelerate discussions to loosen restrictions on military exports, stating, "This will contribute to strengthening the deterrence and response capabilities of our allies." This initiative follows heightened tensions with China, particularly regarding Taiwan, which Takaichi previously suggested Japan could defend militarily if attacked, an assertion that has drawn significant ire from Beijing according to Channel News Asia and South China Morning Post.

Economically, Takaichi reassured investors that her administration would not engage in "reckless fiscal policies." Instead, she affirmed her determination to "keep hitting that growth switch," while emphasizing the necessity of managing inflation and stabilizing the national debt, which she vowed to reduce relative to Japan's GDP. Takaichi's government will also focus on investments in key areas such as energy, health, infrastructure, and cybersecurity, as well as growth sectors like AI and shipbuilding, aiming to alleviate consumer burden during rising inflation rates, as reported by South China Morning Post and Channel News Asia.

Additionally, Takaichi announced plans for a comprehensive national council aimed at discussing strategies for addressing Japan's aging population and ballooning social security needs, signaling her proactive approach to managing the country's fiscal health amidst demographic challenges. This was further supported by a promise to enhance cooperation with the United States and to strengthen supply chains, especially concerning critical materials, as noted by Reuters and South China Morning Post.