Japan’s ruling Liberal Democratic Party (LDP) has chosen Sanae Takaichi, the party’s only female candidate, as its new leader. The 64‑year‑old winner is on track to become Japan’s first female prime minister – a move that could shake up investors and blur shifting regional alliances.
A new direction for an aging party
The LDP has governed Japan since the late 1940s, but the party’s grip on power has loosened in recent years. Rising prices, a shrinking workforce and strong opposition gains have left many voters frustrated. Takaichi’s election gives the LDP a chance to restore confidence and counter rivals like the Democratic Party for the People and Sanseito, which are swaying younger voters away.
She beat Shinjiro Koizumi, 44, who ran as the most moderate and youngest contender. Takaichi comes in with a background in economic security and internal affairs and is known for championing an aggressive fiscal policy echoing former Prime Minister Shinzo Abe’s Abenomics.
What the country can expect
The new leader signals a sharp shift in policy. Takaichi has previously criticized the Bank of Japan’s interest‑rate hikes and is a proponent of increased public spending – a strategy that could unsettle investors wary of Japan’s large debt load. Analysts say her victory may lower the odds of a rate rise in the coming months.
On trade and foreign policy, Takaichi hinted at revisiting the investment deal agreed with former U.S. President Donald Trump, a move that supports stronger trade ties and could reduce U.S. tariffs through U.S. investment in Japan. The U.S. ambassador to Japan, George Glass, welcomed her comments and praised the intent to deepen the Japan–U.S. partnership.
However, Takaichi’s nationalist stance could create tension with Japan’s neighbors. She often visits the Yasukuni shrine, a sensitive issue for South Korea and China. She also supports revising Japan’s pacifist post‑war constitution and has floated the idea of a “quasi‑security alliance” with Taiwan, which China claims. Taiwan’s president welcomed her arrival, hoping the new leadership will expand cooperation in trade, security and technology.
Looking ahead
If Takaichi becomes prime minister, she plans to travel overseas more frequently than her predecessor to broadcast a message that “Japan is back.” She pledged to work hard and said she would change her work‑life balance to focus on national duties. A press conference is scheduled for 6:00 p.m.
The LDP’s next parliamentary vote to confirm its new leader will take place on October 15. How this leadership change will influence Japanese politics, its economy, and the region’s security dynamics remains to be seen.
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