JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 24 - 30 October ,2026
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
Outline
▶ Japan weighs foreign agent registry for lobbyists to curb interference
27 Oct, 2027
Nikkei Image
Japan is considering introducing a foreign agent registration system to prevent foreign interference in its politics and public opinion. The proposal would require individuals lobbying on behalf of foreign governments to disclose their activities, potentially including social media campaigns. The initiative forms part of broader efforts to strengthen Japan’s intelligence capabilities and anti-espionage legislation, with a bill expected to be submitted to parliament in 2027. However, defining who must register while protecting freedom of speech and other civil liberties remains a key challenge.
Nikkei Asia:https://asia.nikkei.com/politics/japan-weighs-foreign-agent-registry-for-lobbyists-to-curb-interference
▶ Japan eyes 1 tril. yen private investment in Bangladesh over 5 yrs
27 Oct, 2026
Photo Source: Kyodo
Japan expects up to ¥1 trillion ($6 billion) in private-sector investment in Bangladesh over the next five years, following a summit between Prime Minister Sanae Takaichi and Prime Minister Tarique Rahman. The two countries agreed to expand their Bay of Bengal industrial development initiative to strengthen supply chains, economic resilience, and regional infrastructure, including a Japanese-backed deep-sea port. The partnership also builds on closer trade and security ties, including a recently signed economic partnership agreement and Japanese grant aid for Bangladesh Coast Guard patrol vessels.
Kyodo:https://english.kyodonews.net/articles/-/89547
▶ Japan to back perovskite solar cell mass production with $640m in subsidies
27 Oct, 2026
Photo Source: Kohei Yamada/Nikkei
Japan plans to provide ¥100 billion in subsidies over four years to help Ricoh and Choshu Industry develop mass-production facilities for next-generation perovskite solar cells. The government aims to commercialize this Japanese-developed technology and strengthen domestic supply chains. The initiative seeks to improve Japan’s competitiveness against Chinese manufacturers, reduce energy security risks and accelerate decarbonization. The government is also reviewing regulations and promoting installations at public buildings and infrastructure to encourage wider adoption.
▶ Japan-Germany Summit Meeting and Working Dinner
28 Oct, 2026
Photo Source: MOFA
Japan and Germany agreed to strengthen cooperation in defense, advanced technologies, AI, and economic security during the October 28 summit between Prime Minister Sanae Takaichi and Chancellor Friedrich Merz. Both countries will work to strengthen critical mineral supply chains, protect strategic technologies, and counter economic coercion. Takaichi also raised Japan’s concerns about the EU’s Industrial Accelerator Act (IAA), emphasizing the need to consider Japanese and German interests in industrial support measures. The leaders further reaffirmed cooperation on Ukraine, Indo-Pacific security, and maintaining a rules-based international order.
MOFA:https://www.mofa.go.jp/erp/erp_2/de/pageite_000001_01890.html
▶ Japan's EV subsidies face uncertain future as country's 'DOGE' takes aim
28 Oct, 2026
Photo Source: Masaki Ishihara/Nikkei
Japan will reduce maximum EV purchase subsidies from ¥1.3 million to ¥780,000 per vehicle starting in January as the government seeks to curb public spending. The Finance Ministry is considering further cuts or eliminating the program, while the industry ministry has requested ¥110 billion to extend it into fiscal 2027. The debate reflects tensions between fiscal restraint, domestic automotive competitiveness, and decarbonization goals. With EVs accounting for only around 5% of new-vehicle sales in September, the industry ministry argues that continued subsidies are necessary to encourage adoption and help Japan achieve carbon neutrality by 2050.
▶ Takaichi presses Merz not to leave Japan out of 'Made in Europe' EV subsidies
29 Oct, 2026
Photo Source:Tomoki Mera/Nikkei
Japan is urging the EU to include Japanese automakers in its proposed Industrial Accelerator Act (IAA), which would provide subsidies for EVs manufactured in the EU. Exclusion could threaten Japanese automakers’ European sales, particularly in the company-car market. Japan highlights its long-standing contributions to Europe through investment, job creation and supply chains. However, France’s protectionist stance complicates negotiations. The EU proposal is still being finalized, and the outcome remains uncertain.
▶ Japan prepares for commercial drone flocks after operating limit lifted
30 Oct, 2026
Photo Source: Aeronext
Japan has abolished the previous limit of five drones operated simultaneously by a single pilot, paving the way for expanded commercial drone services in logistics, infrastructure inspections and disaster response. The new guidelines introduced by the Ministry of Land, Infrastructure, Transport and Tourism establish safety requirements, including risk management, emergency procedures and clearly defined operational responsibilities. The reform aims to address labour shortages and accelerate AI-powered multi-drone operations, particularly in depopulated areas. Japan’s drone market reached ¥497.3 billion in FY2025 and is expected to nearly double by FY2030, creating new opportunities for commercial applications and investment.
▶ AI boom, soaring memory prices lift Japan's chip exports 41%
30 Oct, 2026
Photo Source:Shintaro Ino/Nikkei
Japan’s exports of semiconductor-related products surged 41% year-on-year to ¥7.66 trillion in the first half of FY2025, driven by strong AI and data centre demand and sharply rising memory chip prices. Semiconductor-related products contributed more to overall export growth than automobiles and auto parts combined, accounting for 12% of Japan’s total exports. However, rising chip procurement costs are putting pressure on downstream industries, including automotive and PC manufacturers.
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2. Business News
▶ World's 1st hydrogen engine for large ships cuts CO2 emissions by 95%
25 Oct, 2026
Photo Source: Kyodo
Japan Engine Corp. has developed what it describes as the world’s first hydrogen-fueled engine for large commercial vessels, capable of reducing CO₂ emissions by over 95% compared with conventional heavy fuel oil engines. Onboard demonstration testing is scheduled to begin in April 2028 on a multipurpose ship operated by Mitsui O.S.K. Lines. The technology could support maritime decarbonization, although high hydrogen costs and safety challenges remain. Japan is also developing ammonia-fueled engines to help achieve the International Maritime Organization’s target of net-zero greenhouse gas emissions by 2050.
Mainichi:https://mainichi.jp/english/articles/20261025/p2g/00m/0bu/004000c
2▶ Japan's Subaru to go EV-only in Europe by 2028
26 Oct, 2026
Photo Source: Seiya Ota/Nikkei
Subaru plans to phase out gasoline-powered car sales in Europe by 2028 and switch exclusively to EVs, becoming the first Japanese automaker to make such a move in a specific region. The decision reflects rising compliance costs under stricter EU emissions regulations and Subaru’s relatively small European market share. The move comes as EV sales in Europe recover, potentially encouraging other Japanese automakers to accelerate their transition to electric vehicles.
Nikkei Asia:https://asia.nikkei.com/business/automobiles/japan-s-subaru-to-go-ev-only-in-europe-by-2028
▶ Rapidus and HCLTech announce partnership for next-generation semiconductor technologies
26 Oct, 2026
Photo Source: Rapidus
Japan’s Rapidus and India’s HCLTech are partnering to establish two semiconductor engineering centres in Bengaluru and Hubli, India. The centres will provide advanced chip design and engineering capabilities while developing a pipeline of Indian talent to support Rapidus’ next-generation semiconductor manufacturing operations in Japan. The collaboration strengthens Japan-India cooperation in the semiconductor industry.
Rapidus:https://www.rapidus.inc/en/news_topics/news-info/20261026-2/
▶ Japan to team with Germany on fusion energy project, including power plant
27 Oct, 2026
Photo Source: Kyotofusioneering
Japanese and German companies, including Kyoto Fusioneering, Siemens Energy and Mitsui & Co., are partnering to develop nuclear fusion technology, with the goal of establishing a commercial power plant in Germany in the 2030s. The collaboration will focus on power generation systems and key reactor components. The initiative supports Japan and Germany’s efforts to strengthen energy security and develop next-generation clean energy. Both governments are committing significant public and private investment to fusion technology, while also seeking closer cooperation in advanced technology and supply chains.
▶ Siemens to set up regional base for wind turbine maintenance in Hokkaido
27 Oct, 2026
Photo Source:Kyodo
Germany’s Siemens Energy plans to establish a wind turbine maintenance hub in Eniwa, Hokkaido, in January, serving Japan and other Asian markets, including the Philippines and Vietnam. The company will also support the commercialization of floating offshore wind turbines in Japan and provide operational training. The initiative forms part of Japan-Germany economic cooperation and supports Japan’s efforts to expand offshore wind power, with Hokkaido designated as a strategic investment area.
Mainichi:https://mainichi.jp/english/articles/20261027/p2g/00m/0bu/016000c
▶ Japan's top shippers and power producer unite on ammonia-fueled vessels
27 Oct, 2026
Photo Source: NYK Line
Seven Japanese companies, including NYK Line, JERA and major shipbuilders, have partnered to promote ammonia-fueled vessels and decarbonize maritime transport. Four car carriers are planned for completion by fiscal 2030, with JERA supplying green ammonia sourced from India. The initiative aims to strengthen Japan’s shipbuilding competitiveness against Chinese and South Korean rivals while developing a sustainable ammonia supply chain. Despite challenges such as high fuel costs and limited infrastructure, the project aligns with Japan’s broader strategy to double domestic shipbuilding output by 2035 through approximately ¥1 trillion in public and private investment.
▶ AI-powered 2++ vehicles to run on Japanese roads from fiscal 2027
29 Oct, 2026
Photo Source : Yuji Yamashita/Nikkei
Japanese automakers Nissan, Toyota and Honda are preparing to launch production vehicles equipped with AI-powered Level 2++ driver-assistance systems from 2027–2028. The technology enables vehicles to handle most driving tasks while retaining human driver supervision. Nissan plans to introduce the system in its Elgrand minivan in FY2027, while Toyota and Honda aim for launches from 2028. The Japanese government also plans to introduce a certification programme in FY2027 to support adoption.
Asahi :https://www.asahi.com/ajw/articles/17005132
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