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] Japanese Prime Minister Sanae Takaichi's election victory could accelerate progress on a Taiwan-Japan economic partnership agreement. The Asia Cable
• [New] A Chinese attack on Taiwan could pose a survival-threatening situation for Japan. The Asia Cable
• [New] SoftBank is preparing a similar offering in 2026, and Rakuten Mobile plans to launch its version later in 2026 using satellites from AST SpaceMobile. / Japan ITBusinessToday
• [New] China warns Japan against militarism as Takaichi's mandate strengthens. Fault Lines
• [New] A more confident Japan raises the risk that bilateral frictions, historical sensitivities, and China-Japan rivalry intersect, narrowing Seoul's room for quiet maneuver. Fault Lines
• [New] The Japan Self-Defense Force might mobilize in response to a PRC invasion against Taiwan. American Enterprise Institute - AEI
• [New] Challenges include Japan's excise tax impacts and U.S. regulatory uncertainty, though PMI plans price adjustments and product innovations like ZYN Ultra to maintain growth. Ainvest
• [New] Policymakers in several other countries have made SAF pledges as well, but Japan's 2030 mandate is the only other significant one that can be considered confirmed. Biofuels International
• [New] The Japan Civil Aviation Bureau has already established a regulatory framework for advanced air mobility, with plans for commercial services to begin by 2028. / Japan Travel And Tour World
• [New] If successful, the Vertical Aerospace and Marubeni partnership could position Japan as a global leader in advanced air mobility, providing a model for urban air transport that may be replicated in other international markets. eplaneai
• [New] Regulatory frameworks for electric vertical takeoff and landing (eVTOL) operations in Japan are still evolving, and significant infrastructure development will be necessary to support widespread air taxi services. eplaneai
• [New] Japanese corporates have already made sizeable commitments to Indian manufacturing capabilities, and export-oriented production is on track to support India's ambition of $1trn in manufacturing exports by 2030. Passle
• [New] As a long-time provider of global liquidity, a sharp move higher in Japanese yields could pull capital back and push global yields higher. IBKR Campus US
• [New] Japan would consider Chinese military intervention in Taiwan as an existential threat to Japan, justifying the engagement of its Self-Defence Forces. Le Monde diplomatique
• [New] At the governance level, Prudential of Japan is revising its risk appetite framework to clarify recognition of risks tied to its business model, expanding compliance and risk training for management, and adjusting executive roles and evaluations. Insurance Business
• [New] British-based Vertical Aerospace is partnering Japanese trading and investment firm Marubeni Corporation to plan an air taxi network across Japan and kickstart plans for piloted demonstration flights in the Osaka Bay area in 2026. ST
• [New] Japan, if Takaichi's victory is confirmed, will consolidate an axis of common sense and firmness in the Indo-Pacific, essential for containing Chinese expansionism. Atalayar
• [New] Novo will keep patent protection for semaglutide in Europe and Japan until 2033, and in the US until 2032. The Guardian
• [New] Areas where GIC sees emerging opportunities in Japan include corporate reform, industry consolidation, intellectual property, physical artificial intelligence (which enables machines to do things in the real world, such as self-driving cars), digitalization, infrastructure modernization and tourism. ST
• [New] GIC wants to deepen its presence in Japan together with its partners, and expects to grow the number of its staff there by nearly 50% over the next three years. ST
• [New] Fiscal policy is projected to remain expansionary in major economies such as Germany, Japan and the US, providing short-term support to growth. MercoPress

Last updated: 14 February 2026