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The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.
Economic News
▶ Japan successfully launches flagship H3 rocket for more precise GPS
03 Feb,2025
On Sunday, Japan successfully launched its H3 rocket, placing the No. 6 Michibiki satellite into orbit to improve global positioning accuracy. This marks the fourth consecutive successful launch of the H3 rocket, after a 2023 failure. The Michibiki system, which will include seven satellites by 2026, aims to reduce positioning errors to just a few centimeters. The launch took place from the Tanegashima Space Center in Kagoshima Prefecture.
Mainichi: https://mainichi.jp/english/articles/20250203/p2g/00m/0sc/002000c
JAXA (H3 Launch Vehicle): https://www.rocket.jaxa.jp/e/rocket/h3/index.html
▶ Japan to join global framework to monitor crypto trades in 2027
01 Feb, 2025
Starting in 2027, Japan’s National Tax Agency will begin sharing cryptocurrency trade information with 54 countries and regions to combat tax evasion. The initiative, which includes nations like the U.K. and France, aims to track traders' identities and transaction sizes, ensuring any unreported profits are taxed. Japan will also require domestic exchanges to disclose client information by 2026. This move follows concerns over cryptocurrency being used for tax evasion and money laundering. In fiscal 2023, Japan discovered $81.3 million in unreported crypto income, resulting in additional taxes.
Nikkei Asia: https://asia.nikkei.com/Spotlight/Cryptocurrencies/Japan-to-join-global-framework-to-monitor-crypto-trades-in-2027
▶ The Yunlin Offshore Wind Farm Project in Taiwan Enters Full Operation
－Contributing to the Stable Supply of Regional Power and Decarbonization－
03 Feb, 2025
Sojitz Corporation has completed the installation of 80 wind turbine generators at the Yunlin Offshore Wind Farm (Yunlin OWF) in Taiwan, which began full-scale commercial operations on January 30, 2025. The 640 MW wind farm generates enough clean energy to power over 600,000 homes annually and reduces CO2 emissions by approximately 1.2 million tons per year. Located in the Taiwan Strait, the project covers 82 km² and is a joint venture between Sojitz, Skyborn Renewables, TotalEnergies, and Electricity Generating Public Company. Sojitz aims to continue expanding its renewable energy and energy conservation businesses as part of its Medium-term Management Plan 2026.
Sojitz: https://www.sojitz.com/en/news/article/20250203.html
PDF: https://www.sojitz.com/news/news_file/file/250203e.pdf
▶ Japan Inc. in a fight to bring earthquake-dampening tech to Turkey
05 Feb, 2025
Japanese companies are increasing efforts to provide earthquake-resistant technology to Turkey, which is recovering from devastating earthquakes in 2023. Technologies such as seismic dampers, isolators, and reinforced concrete frames have seen high demand, with some companies like Kawakin Core-Tech and GK Global-Maeda Corp. expanding their presence in Turkey. Japan's expertise in seismic isolation is particularly valued, as shown by the success of hospitals built with Japanese technology. However, Japanese firms face strong competition from U.S., European, and local Turkish companies, which often offer lower prices and faster delivery times. Despite these challenges, the market for seismic isolation technology in Turkey is expected to grow further.
Nikkei Asia: https://asia.nikkei.com/Business/Construction/Japan-Inc.-in-a-fight-to-bring-earthquake-dampening-tech-to-Turkey2
▶ Trump and Ishiba to discuss joint AI, chip development at summit
07 Feb, 2025
Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump are set to discuss joint development in artificial intelligence (AI) and semiconductors during their summit in Washington. This cooperation aims to strengthen supply chains and address China's growing technological power. Japan's SoftBank Group plans to invest in OpenAI's Stargate Project, and the two governments are launching a new joint AI research program with major tech companies. The summit's joint statement will highlight cooperation on economic and national security, and emphasize multilateral frameworks like the Quad. Discussions may also touch on Nippon Steel’s potential acquisition of U.S. Steel.
▶ Japan urges officials to exercise caution over DeepSeek for work use
07 Feb, 2025
The Japanese government has warned officials to be cautious about using the AI model developed by Chinese startup DeepSeek, citing security concerns. The government emphasized the risks of using generative AI for confidential information and highlighted that DeepSeek's data is stored in China, where disputes would be governed by Chinese law. The use of DeepSeek’s AI model must also be approved by Japan's National Center of Incident Readiness and Strategy for Cybersecurity and the Digital Agency. DeepSeek's AI, which claims to rival OpenAI's ChatGPT, has gained attention for its low development cost.
Mainichi : https://mainichi.jp/english/articles/20250207/p2g/00m/0bu/002000c
Business News
▶ Hitachi aims to outshine Sony with IT solutions shift
01 Feb, 2025
Hitachi has launched a biometric payment system in Japan, allowing customers to pay by scanning their palm, which identifies them by their vein pattern. The system, available at restaurants and hotels along the Tobu Railway line, aims to simplify payments without the need for cards or smartphones. Hitachi plans to scale the service to 20 million users, partnering with other retailers like FamilyMart. The company is shifting its focus from traditional manufacturing to technology infrastructure, aiming to provide AI-powered solutions. Hitachi also plans to introduce facial recognition for seamless travel and shopping. The initiative reflects Hitachi's broader digital transformation, focusing on offering value-added services beyond physical products.
Nikkei Asia: https://asia.nikkei.com/Business/Companies/Hitachi-aims-to-outshine-Sony-with-IT-solutions-shift
▶ SoftBank, Open AI to call on 500 firms to help build Japan AI network
03 Feb, 2025
SoftBank Group and OpenAI are partnering to develop Japan's AI infrastructure, including AI-focused data centers and power plants. They plan to engage over 500 Japanese companies across various industries to create generative AI solutions. SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman will meet with Prime Minister Shigeru Ishiba to announce the initiative. SoftBank is constructing AI data centers in Japan, including one in Sakai set for 2026 and another in Hokkaido starting in April 2026. This project follows a similar $500 billion AI infrastructure pledge made in the U.S. earlier this year.
▶ Mitsui could study Alaska LNG project, but no decision yet
04 Feb, 2025
Mitsui is considering studying a potential liquefied natural gas (LNG) project in Alaska, but no decisions have been made, according to CFO Tetsuya Shigeta. Japan is exploring support for a $44-billion gas pipeline in Alaska to strengthen ties with the U.S. and avoid trade friction. Shigeta expressed hope that the upcoming meeting between Prime Minister Shigeru Ishiba and President Trump would enhance Japan's presence in the U.S. While the LNG project is a potential opportunity due to its proximity to Japan and other Asian countries, Mitsui has not yet made any official policy decisions.
Asahi: https://www.asahi.com/ajw/articles/15612779
▶ Tesla to supply batteries for major Japanese power storage facility
04 Feb, 2025
Tesla will supply 548 megawatt-hours of its Megapack storage batteries to a large power storage plant in Maibara, Shiga Prefecture, Japan, planned by financial services group Orix. The facility, set to start operation in 2027, aims to support Japan's renewable energy transition. This plant is one of the largest grid-connected storage plants in Japan, following the country's 2022 policy change allowing electricity sales from large storage batteries. Tesla, which has previously provided batteries for plants in the U.S. and Australia, began operations in Japan in 2021 and seeks to capitalize on the growing demand for energy storage solutions.
Nikkei Asia: https://shorturl.at/oHM1G
▶ Toyota announces EV and battery push in China and U.S., as its quarterly profit surges
05 Feb, 2025
Toyota is expanding its electric vehicle (EV) efforts with a new partnership in Shanghai, where it will produce Lexus EVs starting in 2027, with an initial capacity of 100,000 vehicles annually. Additionally, Toyota will build a $14 billion battery plant in North Carolina, creating 5,000 jobs, to supply batteries for EVs, hybrids, and plug-ins in North America. These moves reflect Toyota’s push to catch up in the competitive EV market, which has been dominated by companies like Tesla and BYD. Toyota also reported a 61% profit increase for the fiscal third quarter and revised its annual profit forecast upward. The company aims to contribute to China's carbon neutrality goal by 2060.
Asahi: https://www.asahi.com/ajw/articles/15614344
▶ Kubota to dig deeper in India, North America with $3bn R&D buildup
05 Feb, 2025
Nikkei Asia: https://asia.nikkei.com/Business/Companies/Kubota-to-dig-deeper-in-India-North-America-with-3bn-R-D-buildup
▶ Approval in Principle (AiP) Acquired from Classification Society for Low-Pressure Type Coastal Liquefied CO₂ Carrier -- Target Set on Realizing Domestic CCS Business –
05 Feb, 2025
Mitsubishi Shipbuilding and Nippon Gas Line (NGL) have jointly received Approval in Principle (AiP) from Nippon Kaiji Kyokai (ClassNK) for a low-pressure type liquefied CO2 (LCO2) carrier. This carrier will be used for coastal transportation of CO2 from small-scale capture sites to base sites for overseas storage, supporting carbon capture and storage (CCS) projects in Japan. The certification follows a concept study conducted with the Japan Organization for Metals and Energy Security (JOGMEC). The carrier is part of efforts to strengthen the energy transition and advance CCS technologies, with the aim of contributing to both domestic and global maritime industries.
Mitsubishi Heavy Industries: https://www.mhi.com/news/250205.html
▶ Tokyo Electron says AI to drive 'double-digit' growth in chip tool market
06 Feb, 2025
Tokyo Electron expects "double-digit growth" in the chip tools market next year, driven by rising demand for advanced processing machines, especially for AI smartphones, PCs, and data centers. CEO Toshiki Kawai anticipates this trend will boost the company's performance, with a record 2.4 trillion yen ($15.7 billion) in sales for the current fiscal year. The wafer fab equipment market reached $110 billion in 2024, fueled by AI server demand, and is expected to remain stable in 2025. While sales to China are expected to decrease due to export controls, Tokyo Electron continues to focus on high-value tools. The company also plans a 104 billion yen investment to build a new factory in Miyagi, Japan.
Nikkei Asia: https://asia.nikkei.com/Business/Technology/Tokyo-Electron-says-AI-to-drive-double-digit-growth-in-chip-tool-market
▶ Japan lab and Intel set out to develop next-gen quantum computer
06 Feb, 2025
AIST (National Institute of Advanced Industrial Science and Technology) in Japan is collaborating with Intel to develop a next-generation silicon quantum computer using Intel’s advanced chips. The computer will be made available to universities and businesses for a fee. The goal is to create a machine with tens of thousands of qubits, over 100 times more powerful than current quantum computers, by the early 2030s. Potential applications include drug development, logistics optimization, and power distribution. The project is expected to cost billions of yen, with the private sector pushing for government leadership in funding. AIST is also partnering with IBM to develop a superconducting quantum computer.
Nikkei Asia: https://shorturl.at/CqolF
▶ Honda-Nissan tie-up failure leaves Japanese automakers' future hazy
06 Feb, 2025
The planned merger between Honda and Nissan is on the brink of collapse due to disagreements over management control and strategic direction. Nissan, struggling with competition from local Chinese EV makers and lacking popular hybrid models in the U.S., had hoped Honda would lead a turnaround. However, Honda's proposal to make Nissan its subsidiary, which was opposed by Nissan, led to the breakdown of talks. With the merger unlikely, Nissan may now seek new partners, with Taiwanese electronics giant Foxconn potentially acquiring a stake in Nissan. Foxconn had previously approached Nissan's largest shareholder, Renault, to discuss acquiring shares.
Mainichi: https://mainichi.jp/english/articles/20250206/p2g/00m/0bu/005000c
▶ Nippon Steel cuts blast furnace CO2 emissions by a record 43%
06 Feb, 2025
Asahi: https://www.asahi.com/ajw/articles/15578199
▶ Fronted 'Station Waiting Booth' to Retain Heated and Cooled Air
06 Feb, 2025
Panasonic Corporation and Osaka Metro have begun a demonstration experiment for Japan's first "open-front station waiting booth" at Asashio-bashi Station on the Osaka Metro Chuo Line, starting February 7, 2025. The booth, designed for both cooling and heating, uses Panasonic's airflow control technology to maintain a comfortable environment even in an open-front configuration, offering energy-efficient climate control. Compared to traditional enclosed waiting rooms, this booth reduces the depth by about 50% while maintaining equivalent power consumption per seat. The booth is aimed at addressing heat and cold issues at station platforms, where space is limited. The experiment will run until September 2025, gathering user feedback and data on temperature and energy consumption to assess its effectiveness in enhancing user comfort and safety at outdoor station platforms.
Panasonic(Japanese): https://news.panasonic.com/jp/press/jn250206-1?_gl=1*16x1py7*_ga*OTk1NTY2NzU2LjE3Mjk3NTE3MTE.*_ga_K78QDTE73S*MTczODgxMjU1NC43LjEuMTczODgxMjU5My4yMS4wLjA.
▶ Mitsubishi books $342 million charge on Japan offshore wind projects
07 Feb, 2025
Mitsubishi Corp. took a 52.2 billion yen ($342.4 million) impairment charge on its domestic offshore wind projects due to a "significantly changed" business environment, impacted by rising costs, supply chain disruptions, and Russia's war on Ukraine. The company is reviewing its offshore wind farm projects, which are expected to start between 2028-2030. Despite the impairment, Mitsubishi reported a 19% increase in net profit for the nine months ending in December, driven by gains in its LNG business and asset sales. Mitsubishi maintained its full-year profit forecast at 950 billion yen. Other companies like Mitsui also face challenges due to rising costs and exchange rate fluctuations but plan to continue with their offshore wind projects.
Asahi: https://www.asahi.com/ajw/articles/15616773
The EU-Japan Centre currently produces 5 newsletters :
Joint venture established in 1987 by the European Commission (DG GROW) and the Japanese Government (METI) for promoting all forms of industrial, trade and investment cooperation between the EU and Japan.
The EU-Japan Centre’s activities are subject to the allocation of a Grant Agreement by the European Commission for 2024-2026
