Has Sanae Takaichi Made Japan Great Again?

Prime Minister Sanae Takaichi’s first year in office marks a transition toward assertive, conservative leadership characterized by direct engagement with voters over traditional party consensus. Her economic agenda prioritizes rekindling inflation to combat decades of stagnation, supported by a massive investment roadmap targeting key industries like AI, semiconductors, and aerospace. While this strategy aims to boost domestic dynamism, it faces significant hurdles, including Japan’s record-high debt burden and the necessity of private sector buy-in. Geopolitically, Takaichi has navigated a frostier relationship with China following her stance on Taiwan, while simultaneously managing complex trade and security dynamics with the United States. Despite market concerns over rising bond yields and fiscal sustainability, her administration maintains strong political capital, bolstered by recent election victories and planned tax relief measures intended to provide immediate relief to citizens.