Who is Sanae Takaichi — the newly elected leader of Japan’s Liberal Democratic Party who has become the embodiment of a new wave of Japanese conservatism? This article examines the key directions of her political agenda: an economic strategy based on an active role of the state and industrial protectionism, as well as a new defense doctrine aimed at strengthening national autonomy and security.
How does Takaichi seek to combine the ideas of economic growth, technological renewal, and strategic sovereignty while maintaining continuity with Shinzo Abe’s policies? Read more in the article below.
Sanae Takaichi, the newly elected leader of Japan’s Liberal Democratic Party and a likely future prime minister, emerges as the successor to Shinzo Abe’s political course while offering her own vision for the country’s future. Her political platform rests on three main pillars: economic revitalization, preservation of traditional values, and strengthening of defense capabilities. Takaichi’s rhetoric is dominated by the ambition to restore Japan’s status as a leading economic power capable not only of responding to the challenges of global competition but also of shaping the rules of the international order.
At the core of her program lies the concept of a “strong economy.” Takaichi emphasizes the need to combine public and private investment and to provide targeted support to strategic sectors — from semiconductor manufacturing and space technology to the development of the defense industry. This approach signals a departure from the strict fiscal discipline that has defined Japan’s financial policy over the past decades. She calls for a “responsible but proactive fiscal policy,” which envisions increased government spending as a tool to stimulate growth.
Takaichi pays particular attention to the issue of the tax burden on the population. Her proposal to abolish the 8% tax on food products — although later withdrawn — signaled her willingness to reconsider even established institutional arrangements if they suppress consumer demand or deepen social inequality. Such initiatives demonstrate her desire to distance herself from the technocratic bureaucracy of the Ministry of Finance, which traditionally advocates for restrained public spending.
However, Takaichi’s economic program is being developed amid an increasingly complex macrofinancial environment. Japan has one of the highest levels of public debt among OECD countries — over 250% of GDP. This raises questions about the sustainability of an active fiscal stimulus model. On the one hand, Takaichi seeks to continue the line of “Abenomics,” a combination of monetary easing, fiscal stimulus, and structural reform. On the other hand, the current context differs significantly from the 2010s: inflation is rising, the population is shrinking, and the potential for further debt expansion is limited. For this reason, her economic course has generated mixed reactions among financial experts.
Sanae Takaichi’s new economic strategy is being shaped amid structural problems that have accumulated over decades. The Japanese economy faces a combination of low potential growth, demographic decline, stagnant consumption, and chronic debt pressure. The share of people aged over 65 already exceeds 29% of the population, while the working-age population continues to shrink each year. This creates a double strain: on one hand, spending on social security and healthcare is increasing, while on the other, the tax base is shrinking, undermining the financial stability of the state.
Takaichi emphasizes that the response to these challenges cannot be limited to spending cuts. She proposes a shift toward an “active state” that invests in strategic sectors, stimulates domestic demand, and ensures technological modernization. Her campaign documents call for stronger support for companies working in artificial intelligence, microelectronics, renewable energy, and defense technologies. In this sense, Takaichi’s economic program continues the course of “Abenomics,” but places greater emphasis on national security as a key factor of economic policy.
At the same time, experts highlight the risks of fiscal expansion. Japan already spends more than 20% of its budget on debt servicing, and higher interest rates could significantly increase this figure. In this context, the relationship between the government and the Bank of Japan becomes a decisive factor. Takaichi is known for her criticism of the current leadership of the central bank, accusing it of prematurely moving away from monetary easing.
She argues that the rate hikes to 0.5%, and later to 0.75% in 2025, occurred when the economy had not yet recovered from the inflationary shock and the decline in real incomes.
Her position has sparked a debate about the limits of the Bank of Japan’s independence. On one hand, government interference could undermine confidence in institutional stability, which is the foundation of the financial system. On the other, Takaichi’s arguments reflect public concerns about rising living costs, declining purchasing power, and a shortage of jobs for young people. She appeals to the logic of “shared economic recovery,” in which the government, business sector, and central bank act in coordination to support domestic demand.
Takaichi’s stance on the exchange rate also deserves special attention. She views a weak yen not only as a problem but also as a potential instrument to boost Japan’s export competitiveness. However, given the country’s high energy dependence and rising import costs, excessive currency depreciation could fuel social discontent. Takaichi acknowledges this delicate balance and stresses the need for a “flexible currency approach,” which would allow government intervention in cases of sharp fluctuations but without establishing a fixed exchange rate.
In a broader sense, her economic program combines elements of Keynesian stimulus and state protectionism, reflecting a return to “economic nationalism.” She envisions the state not as a constraint but as a coordinator of growth. This makes Takaichi an heir not only to “Abenomics” but also to the longer tradition of Japanese state-led industrialism characteristic of the postwar era.
Defense issues occupy a central place in Sanae Takaichi’s political agenda. She views national security not only as a military category but as a systemic component of economic stability and state sovereignty. In her public speeches, Takaichi has repeatedly emphasized that “Japan must be able to defend itself without hesitation and without dependence on external assistance.” This statement reflects a profound evolution in Japan’s strategic thinking, which is gradually shifting from postwar pacifism toward the concept of “active defense.”
In the field of security policy, Takaichi advocates for a continued increase in defense spending, which has already surpassed 2% of GDP — a record level for Japan since World War II. She supports expanding investments in missile defense systems, space technologies, and artificial intelligence in the military sector. Particular attention is paid to the development of offensive capabilities, including the acquisition of long-range missiles capable of striking targets on enemy territory. This approach marks a gradual departure from the exclusively defensive posture enshrined in the constitution.
Under Takaichi’s leadership, further strengthening of Japan’s alliance with the United States is expected. She regards the U.S.–Japan alliance as “an irreplaceable pillar of regional stability” and calls for deeper military-technical integration. This includes not only joint exercises and the stationing of U.S. bases but also the participation of Japanese companies in the development of advanced weapons in cooperation with the United States, the United Kingdom, and Italy — particularly within the framework of the sixth-generation fighter program, the Global Combat Air Programme (GCAP). Takaichi stresses that participation in this project will allow Japan to maintain technological autonomy while reinforcing its transatlantic ties.
At the same time, her foreign policy rhetoric remains firm toward China and North Korea. She openly criticizes China’s military buildup, especially in the maritime domain, reminding that the People’s Liberation Army already possesses the largest navy in the world by the number of warships. Takaichi sees this as a strategic threat to Japan and regional stability, particularly in the East China Sea.
She also advocates strengthening cooperation within the QUAD framework (Japan, the United States, Australia, and India), which she views as a key mechanism for deterring China.
Regarding North Korea, Takaichi maintains an uncompromising stance. She calls for the creation of a multilayered deterrence system that combines intelligence capabilities, missile defense, and the capacity to conduct preemptive strikes in the event of an imminent threat. The politician also stresses the need to modernize Japan’s civil defense system, including the establishment of effective early warning mechanisms and shelters — an issue that has long been neglected by Japanese governments.
At the same time, Takaichi recognizes that strengthening defense capabilities should not isolate Japan from the international community. She advocates for greater diplomatic engagement in Asia, Africa, and Europe, particularly through infrastructure and economic security initiatives. Her vision can be described as “global pragmatism” — a blend of economic influence and military-political presence.
In this context, her position on the war in Ukraine is of particular significance. Takaichi has repeatedly expressed sympathy for the victims of Russian aggression, emphasizing that the use of force to change borders sets a dangerous precedent. She views the Ukrainian war as a lesson for Japan: a state that fails to demonstrate the will to fight risks losing not only territory but also the trust of its allies. Takaichi uses Ukraine’s example as an argument for further strengthening Japan’s armed forces and reconsidering non-nuclear restrictions — specifically, the clause prohibiting the deployment of nuclear weapons on Japanese territory in the event of heightened threats.
Her strategic vision reflects the ongoing trend toward transforming Japan into a “normal state” (a term popularized by Abe) in the security sphere — with its own defense capabilities, global alliances, and an active role in regional politics.
The evolution of Sanae Takaichi’s political career demonstrates a combination of traditionalist convictions with a pragmatic approach to contemporary challenges facing Japan. She not only embodies the ideological continuity of Shinzo Abe’s course but also seeks to adapt it in response to changes in the security environment, technological trends, and social expectations. Her aspirations to strengthen Japan’s defense capability, revise constitutional constraints, and develop strategic autonomy underscore the country’s readiness to assume a more proactive role in regional and global politics.
At the same time, Takaichi’s political style — a blend of conservative identity, national pride, and unwavering support for the U.S. alliance—provokes mixed reactions both domestically and abroad. For some, she symbolizes strong and principled leadership capable of defending national interests; for others, she represents a figure that risks deepening internal divisions and intensifying tensions in East Asia.
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