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Commentary
Wall Street Journal

Can Takaichi Make Japan Competitive Again?

Will Chou
Will Chou
Senior Fellow and Deputy Director, Japan Chair
Sanae Takaichi, the newly elected leader of Japan's ruling party, the Liberal Democratic Party (LDP), poses in the party leader's office after the LDP leadership election in Tokyo on October 4, 2025. (Getty Images)
Caption
Sanae Takaichi, the newly elected leader of Japan's ruling party, the Liberal Democratic Party (LDP), poses in the party leader's office after the LDP leadership election in Tokyo on October 4, 2025. (Getty Images)

You are right to worry about Japan’s economic health (“Has Japan Found Its Margaret Thatcher?,” Review & Outlook, Oct. 7). The country’s growth rate in recent years has averaged about 0.5%, and its debt-to-GDP ratio is the worst in the developed world at 235%. Companies have begun to focus on overseas markets and cut capacity at home owing to aging consumers, aging workers, and lagging incomes. Voter frustration with the cost of living likely fueled the Liberal Democratic Party’s recent electoral defeats.

You write that “Sanae Takaichi is a hawk on China but a muddle on economics.” But that overlooks how she sees her security policies as being intertwined with Japan’s economic and the LDP’s political needs.

Read in The Wall Street Journal.