Global Scans · Japan · Weekly Summary

WHAT'S NEXT?: The latest sign of weakness in Japan's economy will likely add to mounting skepticism about the prime minister's expansionary policies. His coalition government has just achieved the supermajority it needs to amend the constitution which many are worried that Japan is about to remove the mask of pacificism and convert its "Self-Defense Force" into the military threat it really is.

• [New] If the U.S. and its allies can continue to cooperate to prevent China from accessing the latest technology, e.g., EUV [Extreme Ultraviolet], machines from Europe and specialty chemicals from Japan, the U.S. could maintain its lead in computational hardware. Longitudinal Expert AI Panel
• [New] The Takaichi Cabinet will redouble its efforts to make Japan a world-leading hub of intellectual creation and innovation. Prime Minister's Office of Japan
• [New] This year Japan will launch a new initiative: the Next-Generation Leadership Security Program. Japan Ministry of Defense
• [New] As a semiconductor materials manufacturer, Fujifilm will strongly support Rapidus' development and manufacturing of leading-edge semiconductors by providing a wide range of semiconductor materials and technologies. / Japan Y.M.Cinema Magazine
• [New] Japan's fledgling foundry biz Rapidus has secured funding of $1.7 billion to help it progress to mass production of 2 nm semiconductors by 2027, making it a potential rival for Taiwan's TSMC. The Register
• [New] At the national level, Japan's upcoming GX-ETS will allow companies to use credits for up to 10% of compliance obligations, potentially generating 50-60 million tonnes of annual demand. Green Earth Group NV
• [New] Singapore will deepen collaboration in areas like the digital economy, green transition and emerging technologies with Japan as both nations mark the 60th anniversary of diplomatic relations in 2026. ST
• [New] GlobalData expects Japan's general insurance segment to grow at a 2.2% CAGR between 2024 and 2029. Insurance Business
• [New] The flying taxi service will begin transporting passengers between four skyports in Dubai before expanding to New York and Los Angeles, followed by cities in the UK and Japan. AAP News
• [New] If upcoming growth and inflation figures are consistent with the Bank of Japan's projections, the process of policy normalization is expected to proceed. ING Think
• [New] Japan will finance three U.S. projects worth $36 billion under a $550 billion package that lowered tariffs on Japanese cars. The Asia Cable
• [New] Many other advanced economies - such as Australia, Canada, Japan and Korea - are expected to see faster electricity demand growth through 2030. IEA
• [New] Japanese Chief Cabinet Secretary Minoru Kihara denied media reports about Japan joining PURL, noting that Japan will still continue to provide economic and humanitarian support to Ukraine. Critical Threats
• [New] India is expected to overtake Japan to become the fourth largest economy in the world by the end of 2026. St James's Place
• [New] Japan is leveraging humanoid robots to address a projected shortfall of specialised caregivers, providing billions in subsidies, introducing robots into thousands of facilities, and integrating robotics into healthcare infrastructure. Persistence Market Research
• [New] Fastest-Growing Region: Asia Pacific is the fastest-growing region through 2033, fueled by the rapidly aging demographics in Japan and China, and a rising middle-class focus on preventive health. Persistence Market Research
• [New] Japan's Green Transformation framework includes a voluntary emissions trading system that will transition to a mandatory ETS starting in fiscal year 2026. ASUENE | The enterprise climate cloud platform | Carbon
• [New] The Nikkei index will reach 58,500 points by year-end and advises investors to focus on companies with high proportions of overseas revenue and strong dividend capacities. / Japan Tradingkey
• [New] Japan and South Korea pursue alternative strategies including strategic reserves and battery recycling investments to reduce import vulnerability. Discovery Alert
• [New] At any given level of AI capability, a society is going to be able to exploit it, and distribute its fruits to its population, effectively if it enjoys the governance quality of Japan or Switzerland. Technocracy News
• [New] DeepSeek prefers to own the hardware so that it can conduct hardware-specific optimizations, while Tencent is eager to keep up with advanced model capabilities and will leverage access to Blackwells at AI data centers such as the one operated by Datasection in Japan. American Affairs Journal

Last updated: 07 March 2026