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The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.
▶ Meeting between Prime Minister ISHIBA and President PAVEL of the Czech Republic
25 July, 2025
On July 25, Prime Minister Ishiba of Japan met with Czech President Petr Pavel, who was visiting for Expo 2025-related events. They discussed strengthening bilateral ties, highlighting a new air services agreement set to take effect in October and cooperation in trade, investment, and defense. Ishiba emphasized the shared values between the two nations and the importance of Indo-Pacific and European security. President Pavel, joined by business delegates from the IT and defense sectors, expressed hopes for deeper economic collaboration. The leaders also exchanged views on regional issues, including Ukraine, North Korea, and the Indo-Pacific, agreeing to work closely together.
MOFA: https://www.mofa.go.jp/erp/c_see/cz/pageite_000001_01138.html
▶ Govt to Support Domestic Mass Production of Next-Generation Solar Cells; Aims for 1GW Annual Production Capacity by ’30
28 July, 2025
Japan's Economy, Trade and Industry Ministry plans to promote the domestic mass production of next-generation perovskite solar cells using the Green Innovation Fund. The goal is to reach an annual production capacity of about 1 gigawatt—enough to power around 300,000 households—within this fiscal year. The ministry will also support the development of high-efficiency tandem solar panels that combine silicon and perovskite cells, aiming for 1.5 to 2 times the efficiency of conventional panels. To qualify for government support, companies must lower power generation costs to 12 yen/kWh or less and ensure a 20-year lifespan. Key domestic players include Kaneka Corp., Choshu Industry Co., Sekisui Chemical Co., and Panasonic Corp. While Chinese firms are ahead in mass production, Japan seeks to catch up by boosting its technological capabilities and domestic market share, especially in residential solar applications.
Yomiuri: https://japannews.yomiuri.co.jp/business/economy/20250728-272291/
▶ Japan Foreign Ministry reorganization to focus on economic security
29 July, 2025
Japan’s Foreign Ministry is undergoing its largest reorganization in about 20 years, creating new divisions to strengthen economic security and address emerging issues like AI and digitalization. Key changes include establishing an economic security division, an economic diplomacy strategy division, and a director-level economic strategy role focused on Europe. Additionally, a new division will address Central and Eastern Europe amid the Russia-Ukraine war, and another will focus on protecting Japanese nationals overseas from terrorism, natural disasters, and political instability.
Mainichi: https://mainichi.jp/english/articles/20250729/p2g/00m/0na/012000c
▶ Japan aims to attract Denmark's Vestas to produce wind turbine blades
30 July, 2025
Japan is set to sign a memorandum of understanding (MOU) with Danish wind turbine giant Vestas to encourage local production of turbine blades and components. Nippon Steel will also sign a separate MOU with Vestas to explore using Japanese-made steel in turbine towers. The Ministry of Economy, Trade and Industry will support the initiative with subsidies, aiming to boost domestic procurement and expand wind energy. This move is part of Japan’s broader effort to attract foreign wind turbine makers, develop its local supply chain, and shift toward renewable energy amid a global slowdown in offshore wind investment.
Nikkei Asia: https://asia.nikkei.com/Business/Energy/Japan-aims-to-attract-Denmark-s-Vestas-to-produce-wind-turbine-blades
▶ Record 40% of men with infants in Japan took paternity leave in 2024
30 July, 2025
A record 40.5% of fathers with infants in Japan took paternity leave in 2024, up 10.4 points from the previous year, thanks in part to a new postnatal leave program introduced in 2022. The government is on track to meet its goal of 50% by 2025, though uptake varies by company size and industry. While 86.6% of mothers took maternity leave, many fathers still hesitate due to workplace pressure. Larger companies had higher participation rates (over 50%), while small businesses lagged, with only 25.1% of men at firms with 5–29 workers taking leave. Industry disparities were also notable—over 60% in finance and insurance, but under 20% in real estate and entertainment. The survey included responses from 3,383 companies out of 6,300 contacted.
Mainichi: https://mainichi.jp/english/articles/20250730/p2g/00m/0na/058000c
▶ Japan Releases Guidelines for Stronger Space Defense as It Looks to Protect Its Satellites from Adversaries
30 July, 2025
Japan’s Defense Ministry released its first space defense guidelines to strengthen protection of Self-Defense Forces (SDF) satellites and ensure safe space use for companies. The guidelines highlight threats from countries like China and Russia developing anti-satellite weapons and stress the need for improved space domain awareness to monitor and detect such threats. They emphasize stable satellite communications for military intelligence and capabilities to jam enemy communications. The plan involves public-private partnerships to leverage advanced commercial technologies, as well as training and recruiting space defense experts within the Defense Ministry and SDF.
Yomiuri: https://japannews.yomiuri.co.jp/politics/defense-security/20250730-272537/
▶ Japan's state-backed JIC to launch $5.4bn fund for big restructuring deals
30 July, 2025
Japan Investment Corp. (JIC), a state-backed entity, will establish an ¥800 billion ($5.4 billion) fund this year to support large-scale business restructurings amid a record surge in Japanese mergers and acquisitions (M&A). The fund, managed through its subsidiary JIC Capital, will target deals over ¥100 billion with investment periods around 10 years and collaborate with private equity and other investors. JIC aims to boost Japan’s industrial competitiveness by involving domestic investors in major M&A deals. The Ministry of Economy, Trade and Industry plans to request additional funding for JIC in 2026 to expand its portfolio and support private-sector funds. Japanese M&A activity hit record highs in 2024, with much investment coming from global private equity firms’ Japanese branches.
Nikkei Asia: https://asia.nikkei.com/Business/Finance/Japan-s-state-backed-JIC-to-launch-5.4bn-fund-for-big-restructuring-deals
▶ Japan sets guidelines targeting tech giants dominating app market
30 July, 2025
Japan’s antitrust watchdog, the Fair Trade Commission, issued guidelines under the newly enacted Mobile Software Competition Act, which will take full effect in December 2024. The law aims to regulate monopolistic practices in the smartphone app market, primarily targeting Apple and Google, who together control over 90% of Japan’s smartphone operating system market. The guidelines prohibit discriminatory treatment against competing app stores, requiring Apple and Google to allow users to access third-party app stores and enabling app developers to use alternative payment systems instead of being forced to use the platform operators’ payment methods. The law also mandates that developers must have access to key OS functions—such as voice calls and biometric authentication—to ensure fair competition. Apple has opposed the new regulations, raising concerns over privacy, security, and the forced sharing of its proprietary technology with competitors. The guidelines provide 100 specific examples of violations, including imposing additional screening criteria on certain app stores, highlighting the government’s commitment to fostering a more competitive and open app ecosystem in Japan.
Mainichi: https://mainichi.jp/english/articles/20250730/p2g/00m/0bu/017000c
▶ Japan governors' group seeks measures to accept foreigners, build multicultural society
31 July, 2025
Japan's National Governors' Association has proposed measures to better support foreign residents and promote a multicultural society, emphasizing that foreigners should be seen not just as workers, but as community members. The group calls for a new central organization, separate from the Immigration Services Agency, and the creation of a comprehensive basic law for multicultural policies. It also urges the national government to fund local support efforts, improve Japanese language education, and provide essential information to foreign residents. Amid labor shortages, especially in rural areas, the association recommends implementing the new foreign worker training and employment system in a way that helps attract and retain foreign talent.
Mainichi: https://mainichi.jp/english/articles/20250731/p2a/00m/0na/002000c
▶ Japan's NYK Line moves forward with sea-based rocket recovery plan
26 July, 2025
NYK Line, a major Japanese shipping company, has received technical approval for a sea-based rocket recovery system from classification society ClassNK. The project, in collaboration with Mitsubishi Heavy Industries and supported by Japan’s Space Strategy Fund, aims to develop a system using two vessels—an uncrewed landing platform and a crewed command ship—to recover rockets at sea about 1,000 km offshore. The team will focus on technical design over the next two years, with field testing planned for fiscal 2028. The system addresses the growing demand for reusable rocket technology as land-based recovery in Japan faces limitations.
Nikkei Asia: https://asia.nikkei.com/Business/Transportation/Japan-s-NYK-Line-moves-forward-with-sea-based-rocket-recovery-plan
▶ Mizuho Securities to buy UK renewables M&A advisory firm
26 July, 2025
Mizuho Securities will acquire U.K.-based M&A adviser Augusta & Co. to expand its presence in Europe and tap into the growing renewable energy sector. The deal, expected to close in October, gives Mizuho access to Augusta's expertise in renewable energy transactions, including wind and solar projects. Augusta, founded in 2002, generates about £20 million in annual revenue. Mizuho aims to strengthen its position in sustainability-related M&A, a market growing at around 10% annually, and sees this acquisition as a faster path compared to building capabilities from scratch. The move follows Mizuho’s recent investments in climate-focused firms and builds on its broader M&A strategy after acquiring Greenhill in the U.S. in 2023.
Nikkei Asia: https://asia.nikkei.com/Business/Business-deals/Mizuho-Securities-to-buy-UK-renewables-M-A-advisory-firm
▶ Hitachi Energy and E.ON sign deal worth up to $700 million USD for critical grid infrastructure to bolster energy security and resilience in Germany
28 July, 2025
Hitachi Energy has signed a long-term agreement with German utility E.ON worth up to $700 million USD to supply power and distribution transformers across Germany. This deal—one of Hitachi Energy’s largest ever in Germany—aims to support the country’s accelerating demand for energy infrastructure upgrades amid a global transformer shortage. The announcement aligns with Germany’s new €500 billion infrastructure investment plan, emphasizing energy security and electrification. Hitachi Energy will reserve manufacturing capacity and expand its operations in Germany, where it already employs over 2,000 people. The partnership will help modernize Germany’s power grid to meet growing electricity demand driven by AI, EVs, data centers, and hydrogen, while reinforcing the country’s clean energy transition.
Hitachi: https://www.hitachi.com/New/cnews/month/2025/07/250729a.pdf
▶ Sweden's EQT to buy out Japan's Fujitec in all-share $2.7bn deal
29 July, 2025
Swedish investment group EQT is planning a ¥400 billion ($2.7 billion) buyout of Tokyo-listed elevator maker Fujitec, marking one of the largest Japanese buyouts this year. The move follows ongoing conflict between Fujitec’s founding family and activist shareholders, which has destabilized management. EQT aims to revamp governance, drive growth, and leverage digital technologies to expand Fujitec’s overseas maintenance business. The deal would delist Fujitec, with the founding family retaining a minority stake. Activist shareholders Oasis Management and Farallon Capital are expected to support the takeover and exit their positions. Fujitec reported record sales and profits for the year ending March 2024, with strong growth in Asia.
Nikkei Asia: https://asia.nikkei.com/Business/Business-deals/Sweden-s-EQT-to-buy-out-Japan-s-Fujitec-in-all-share-2.7bn-deal
▶ Japan's Eneos and Toppan aim to turn waste paper into eco-friendly fuel
29 July, 2025
Eneos and Toppan Holdings will launch a pilot project in early 2027 to recycle waste paper into bioethanol at a Nippon Paper plant in Fuji, Shizuoka. The system will process 1–3 tons of waste paper daily, producing about 300 liters of bioethanol. If successful, the technology could be commercialized by fiscal 2030. This initiative aims to create a stable, decarbonized fuel supply without competing with food crops like corn and sugarcane.
Nikkei Asia: https://asia.nikkei.com/Business/Energy/Japan-s-Eneos-and-Toppan-aim-to-turn-waste-paper-into-eco-friendly-fuel
▶ Toyota to make EVs in Czech Republic, its first in Europe
30 July, 2025
Toyota plans to start producing electric vehicles (EVs) at its Czech subsidiary by 2028, marking its first EVs built in Europe. The company aims to produce around 100,000 units annually, including an electric SUV. Toyota intends to offer 14 EV models in Europe by 2026. Despite a slight decline in EV sales in Europe in 2024, demand there remains stronger than in Japan. With the EU banning new combustion vehicle sales by 2035, Toyota views local EV production as key to meeting environmental goals and aims for carbon neutrality in Europe by 2035.
▶ Mitsubishi Chemical, Sharp, NICT, and TECHLAB Agree to Jointly Develop Ultra-Compact, Lightweight Satellite Communication Terminals for Mobility Applications
30 July, 2025
Mitsubishi Chemical, Sharp, NICT, and TECHLAB have agreed to jointly develop ultra-compact, lightweight LEO satellite communication terminals for use in drones and automobiles. These terminals aim to enable high-speed, large-capacity communications in areas where cellular networks are unavailable, such as mountainous or disaster-stricken regions. By combining Mitsubishi Chemical’s advanced heat-dissipating materials with TECHLAB’s design capabilities, the goal is to create terminals less than one-tenth the size and weight of current models (approx. 20cm × 20cm × 3cm, 1kg). This technology will support real-time data transmission and enhance communication for mobility and emergency applications. The project will be showcased at SPEXA 2025 at Tokyo Big Sight from July 30 to August 1.
Mitsubishi Chemical: https://www.mcgc.com/english/news_release/pdf/02409/02663.pdf
▶ Kubota targets Europe's infrastructure projects with expanded lineup
31 July, 2025
Japanese machinery maker Kubota is expanding its construction equipment lineup in Europe, especially compact track loaders (CTLs), to tap into massive infrastructure investments in Germany and the U.K. Kubota, already a strong player in North America, is now targeting Europe where CTLs are still relatively unknown. The company is increasing production capacity in the U.S. to meet expected demand. Europe's infrastructure needs are rising, with Germany planning €500 billion and the U.K. £725 billion in investment over the next decade. Kubota sees long-term potential despite the currently slow European market and aims to grow its global construction machinery sales to 1 trillion yen by fiscal 2028. Meanwhile, it faces weak farm equipment demand in North America and tariff-related uncertainties.
Nikkei Asia: https://asia.nikkei.com/Business/Companies/Kubota-targets-Europe-s-infrastructure-projects-with-expanded-lineup
▶ Mitsui & Co., Mitsui O.S.K. to buy UK offshore wind maintenance port
31 July, 2025
Japan’s Mitsui & Co. and Mitsui O.S.K. Lines will acquire the Port of Nigg and related offshore energy businesses in the U.K. from Global Energy Group (GEG) to strengthen their offshore wind power supply chain in Asia. The investment is estimated in the tens of billions of yen, with Mitsui holding 51% and Mitsui O.S.K. 49%. The Port of Nigg, located in northern Scotland, is a key hub for offshore wind equipment maintenance and supports major projects. While oil and gas still dominate revenue, offshore wind is expected to become the focus after 2030. Mitsui and Mitsui O.S.K. plan to upgrade the port to handle floating wind turbines by the mid-2030s and attract more suppliers through their networks. The move also aims to address a global shortage of offshore wind ports, including in Japan. Despite challenges in the wind sector globally, the U.K.'s support for renewables makes the acquisition a strategic long-term investment.
Nikkei Asia: https://asia.nikkei.com/Business/Business-deals/Mitsui-Co.-Mitsui-O.S.K.-to-buy-UK-offshore-wind-maintenance-port
Published: September 2025
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.
