Thursday, January 8, 2026

America Steps Back

A National Security Strategy of Retreat 

Leaves Asia to Manage the Consequences  

by Daniel Sneider, lecturer in East Asian studies at Stanford University, non-resident distinguished fellow at the Korea Economic Institute of America, and APP Member. First Published December 9, 2025 on the Peninsula Blog of the Korea Economic Institute.


The Donald Trump administration’s much-awaited National Security Strategy (NSS) landed last week with an audible thud.

The somewhat truncated document is an odd combination of social media-style triumphalism and an effort to lay a strategic veneer on the administration’s often chaotic and contradictory policies. But the document clearly expresses an America-First view of the world, a combination of isolationism and U.S. primacy that places allies and partners near the bottom of the priority list.

Much of the strategy’s attention is on the assault against Europe and the dismissal of both the NATO alliance and European unity in favor of supporting right-wing ethno-nationalism. In homage to the nineteenth century, U.S. control of the Western Hemisphere—in the name of a “Trump corollary” to the Monroe Doctrine—has regional priority.

But in Asia, the NSS offers a strange marriage of two historical moments, both still controversial.

One is the infamous Acheson Line, a reference to the speech delivered by then Secretary of State Dean Acheson in January 1950, drawing a U.S. defense line along the island chain from Alaska through Japan to the Philippines, notably excluding the Korean Peninsula and Taiwan. It was a declaration that many believe convinced Stalin to give the green light to Kim Il Sung to invade South Korea, igniting the Korean War.

Trump’s NSS describes a new Acheson Line, the so-called First Island Chain, presented as the first line of defense in the Pacific. Bizarrely, it contains no mention of either North Korea and its nuclear arsenal or even the Korean Peninsula.

This is combined with a revival of President Richard Nixon’s equally infamous Guam Doctrine. Amid the waning days of the Vietnam War, Nixon told reporters during a 1969 tour of Asia that while the region was important to the United States when it came to military defense, “the United States is going to encourage and has a right to expect that this problem will be handled by, and responsibility for it taken by, the Asian nations themselves.” One product of this doctrine was the withdrawal of the 7th Infantry Division from South Korea, a decision that shook confidence in the U.S. security commitment.

The message of this NSS echoes Nixon’s. It demands not only vastly increased defense spending from South Korea and Japan, as well as other partners such as Taiwan and Australia, but also that they assume the roles the United States currently plays in defending regional security, now defined as the First Island Chain. Their own defense gets no mention. As the NSS puts it: “Given President Trump’s insistence on increased burden-sharing from Japan and South Korea, we must urge these countries to increase defense spending, with a focus on the capabilities—including new capabilities—necessary to deter adversaries and protect the First Island Chain.”

The NSS makes it clear that the United States will stand aside and ask its allies to take on the task of defending the Pacific and Europe. “The days of the United States propping up the entire world order like Atlas are over,” the document pronounces. The United States will now ask “allies to assume primary responsibility for their regions,” while presumably still beholden to the United States’ whims and desires.

As Secretary of Defense Pete Hegseth stated last week, Trump prefers “countries that help themselves…rather than dependencies.” Those that spend more are “model allies”—for now, South Korea is on that list, but Japan is not—but “allies that do not, allies that still fail to do their part for collective defense, will face consequences.” It was not explicitly stated, but the withdrawal of U.S. security guarantees appears to be on the table.

The Retreat from Values and Strategic Competition
The two previous national security strategies, one issued during the first Trump administration and one by the Joe Biden administration, were shaped around the concept of strategic competition with China and Russia. The new document almost completely abandons this driving idea.

Instead, “it prioritizes threats from the Western Hemisphere, European civilizational decline and overregulation, and trade deficits but says nothing about the Russian threat to U.S. interests and views China almost entirely through the lens of economic security,” argued Thomas Wright, a former national security official under the Biden administration.

Evans Revere, a former principal deputy assistant secretary of state for East Asian and Pacific affairs, offered this scathing summary of the NSS.

“This is not so much a national security strategy document as it is a screed telling America’s allies, partners, friends, and adversaries that the United States they once knew is gone. Gone are the priorities, principles, beliefs, and assumptions that underpinned U.S. strategy and diplomacy for most of the past 80 years during both Democratic and Republican administrations. Gone is the belief in a U.S.-centric international economic and security order based on American predominance, power, alliances, and defense commitments. And gone is the belief, once deeply shared across every previous U.S. administration, that America’s destiny was to promote a core set of values, including democracy, freedom, and equity, in cooperation with like-minded allies and partners.”

Media in South Korea and Japan echoed these concerns. “Trump administration formalizes strategy of isolationism based on US interests,” headlined a commentary in the progressive Hankyoreh. The editor of a major Japanese paper told this author that he took the NSS “as another statement of America in retreat” that “reconfirms that the entirety of US national core interest is defined as commercial benefit.”

The editor argued that the Trump administration appears to believe that “authoritarianism can be acceptable in the name of sovereignty, and effective foreign policy is conducted only by strong leadership” or “strongmen” like presidents Trump, Xi Jinping, and Vladimir Putin.

“America’s abandoning of its self-position as a leader of free world is obvious in this NSS,” the Japanese editor opined.

The China Question
Some have taken solace in the fact that while the NSS prioritizes the homeland and the Western Hemisphere, it does give some length to discussing China. There are elements of traditional approaches and policy continuity, particularly an embrace of military deterrence and a reaffirmation of support for the status quo in the Taiwan Strait.

But the entire section on China is focused on economic and commercial relations, with the clear suggestion that the two countries can reach a more equitable division of the global economy and presumably the spoils of commerce.

“We will rebalance America’s economic relationship with China, prioritizing reciprocity and fairness to restore American economic independence,” says the NSS. “Trade with China should be balanced and focused on non-sensitive factors.”

“The Trump admin believes in the possibility of a mutually advantageous economic relationship with China,” wrote Michael Sobolik, a senior fellow at conservative Hudson Institute, on December 5.

Trump’s NSS makes no mention of the war against Ukraine or China’s support for Russian aggression, much less China’s military and nuclear buildup. Not only does North Korea drop out of the national security policy, but the entire goal of denuclearization is also gone, perhaps reflecting a growing acceptance of North Korea as a nuclear state.

Even though Taiwan occupies a link on the First Island Chain, the focus is almost entirely on preserving its role in the electronics supply chain. “Asia is important because of its growing GDPs, and Taiwan must be defended for semiconductors and sea lanes,” wrote the veteran Japanese newspaper editor.

Two recent developments seem to manifest this view of Asia. One has been Trump’s apparent decision to effectively ignore China’s increasingly aggressive—including military confrontations in the skies—response to Japanese Prime Minister Sanae Takaichi’s remarks about the potential impact of a crisis over Taiwan on Japan’s security. Indeed, the Financial Times and Wall Street Journal both reported that Trump, after talking to Xi, may have urged Takaichi to back off.

Perhaps more importantly, Trump has cleared the way for a dramatic easing of export controls on the sale of high-powered Nvidia semiconductors to China, effectively putting commerce over security. Ironically, perhaps the NSS also calls for allies like South Korea and Japan to prioritize trade with the United States over China.

“In Europe, we are afraid that Donald Trump’s America may be selling us out to Russia,” wrote former Economist editor Bill Emmott. “In Japan, where I have just been, the fear is of Trump selling them out to China.”

Sunday, December 14, 2025

Asia Policy Events, Monday December 15, 2025

CRITICAL MINERALS: 2025 YEAR IN REVIEW & LOOKING AHEAD TO 2026. 12/15, 9:00am-6:00pm (EST), IN PERSON ONLY. Sponsor: CSIS. Speakers: Seth G. Jones, President, Defense and Security Department; Harold Brown Chair; Jarrod Agen, Executive Director of the White House’s National Energy Dominance Council; Senator Catherine Cortez Masto (D-NV), Ranking Member, Senate Energy and Natural Resources Subcommittee on Public Lands, Forests, and Mining; Senator Bill Hagerty (R-TN), Chairman, Senate Banking, Housing, and Urban Affairs Subcommittee on National Security and International Trade and Finance; Representative Ami Bera (D-CA), Ranking Member, House Foreign Affairs Subcommittee on East Asia and the Pacific; Representative Young Kim (R-CA), Chair, House Foreign Affairs Subcommittee on East Asia and the Pacific; Rahim Bapoo, Managing Director, Energy Transition, Metals, Mining & Critical Minerals, BMO Capital Markets; and more.

LOOKING TO 2026: ECONOMIC PROSPECTS AND POLICY CHALLENGES IN THE GCC. 12/15, 10:00-11:00am (EST), HYBRID. Sponsor: Arab Gulf States Institute (AGSI). Speakers: Amine Mati, Assistant Director, Mission Chief for Saudi Arabia, Head of GCC Division, International Monetary Fund; Monica Malik, Chief Economist, Abu Dhabi Commercial Bank. Moderator: Tim Callen, Visiting Fellow, AGSI.

CRAFTING A NATIONAL POWER INDUSTRY STRATEGY IN RESPONSE TO CHINA’S INDUSTRIAL WAR. 12/15, 1:00-2:30pm (EST), VIRTUAL. Sponsor: Information Technology and Innovation Foundation (ITIF). Speakers: Michael Brown, Partner, Shield Capital; Lt. Gen. (Ret.) H.R. McMaster, Fouad and Michelle Ajami Senior Fellow, Hoover Institution, Stanford University. Moderator: Robert D. Atkinson, President, ITIF.

ANNUAL CHIEF OF THE DEFENCE STAFF LECTURE BY AIR CHIEF MARSHAL SIR RICHARD KNIGHTON. 12/15, 6:30-9:00pm (GMT), 1:30–4:00pm (EST), HYBRID. Sponsor: Royal United Services Institute. Speaker: Air Chief Marshal Sir Richard Knighton KCB ADC FREng, Chief of the Defense Staff.

AI GOVERNANCE: A DISCUSSION WITH REPRESENTATIVE JAY OBERNOLTE, FEATURING REPRESENTATIVE KEVIN HERN. 12/15, 3:00-4:00pm (EST), HYBRID. Sponsor: American Enterprise Institute (AEI). Speakers: Kevin Hern, Chairman, House Republican Policy Committee; Jay Obernolte, US House of Representatives (California); Jim Harper, Nonresident Senior Fellow, American Enterprise Institute (AEI).

Chinese Aircraft Illuminate Two JASDF Jets

 Chinese Aircraft Lock their Radar on Two JASDF Jets

By Takuya Nishimura, Senior Fellow,  Asia Policy Point
Former editorial writer for the Hokkaido Shimbun
You can find his blog, J Update here.
December 8, 2025


Japan’s Minister of Defense Shinjiro Koizumi announced on December 7 that one or two Chinese fighter jets, the previous day, had intermittently illuminated their radar onto two of Japan’s Air Self-Defense Force fighter jets in separate incidents near the Okinawa prefecture. Tokyo immediately protested, although Beijing denied the action. While China’s motivations are unclear so far, it is believed that this provocation reflects China’s frustration with Prime Minister Sanae Takaichi’s remarks last month that her government would view Chinese action on Taiwan – the “Taiwan contingency” – as a threat to Japan.
 
Koizumi’s report came in an unusual post-midnight Ministry of Defense press conference at 2 a.m. Sunday morning. Koizumi reported that two ASDF F-15 fighter jets were exposed to radar directed by J-15 Chinese warcraft twice on the afternoon of December 6. The Japanese jets were flying over international waters southeast of the Okinawa Main Island. Chinese jets were installed on an aircraft carrier, Liaoning, which was in an exercise nearby, also in international waters.
 
A fighter jet has two kinds of radar: fire-control radar and search radar. Fire-control radar is a radio wave to determine the precise location, flying speed, and direction of a target to guide weapons to the target. Search radar is used to find any aircraft, including commercial ones, within a wide area. The radar used by Chinese military aircraft was reportedly fire-control radar.
 
Locking fire-control radar on a target may be a sign that the aircraft can be shot down, metaphorically the same as putting a finger on trigger of gun. A radar lock is recognized as potentially leading into battle. “It was a dangerous activity which went beyond necessity for the safe aviation of an aircraft and extremely regrettable,” said Koizumi. “It was extremely regrettable. We will deal with this issue resolutely and calmly,” Prime Minister Takaichi said.
 
Beijing dismissed Japan’s argument as inconsistent with the facts. “We sternly urge the Japanese side to immediately cease its slanderous and defamatory acts against China and strictly discipline its front-line operations,” said a spokesperson for the PLA Navy, Wang Xuemeng. The Chinese Ministry of Foreign Affairs argued that activating search radar during flight training is commonly done by carrier-based aircrafts of all countries, indicating that the radar illuminated onto JASDF aircraft was not fire-control radar, but search radar.
 
Japan has not determined whether this radar incident was related to Takaichi’s comment on the Taiwan contingency. The significance of her comment is that Chinese action on Taiwan would trigger Japan’s authority to exercise its right to collective self-defense, including necessary military action. While China has been escalating its response to her comment through economic and cultural activities, launching fire-control radar would mark the first major military event in this bilateral row.
 
When the Japanese government purchased the Senkaku Islands from a Japanese owner in 2012, China responded intensively with near-constant incursions into the territorial water around the Senkakus. In 2013, a Chinese frigate locked fire-control radar on a destroyer of the Japan Maritime Self-Defense Force, the only disclosed example of China’s use of fire-control radar before last Saturday. 
 
China has been enlarging its territorial advances toward Japan in recent years. Chinese military aircraft for the first time invaded Japan’s territory offshore of Nagasaki in August 2024. A Chinese Coast Guard helicopter breached territorial waters close to the Senkaku Islands in May 2025. Thus, China may be taking advantage of Takaichi’s comment to step up its pre-existing military pressure on Japan.
 
China argues that its forces were in a naval exercise in neutral water, a not uncommon event for maritime nations. The radar incident occurred, according to the Chinese, because the Japanese fighter jets had scrambled to deter a Chinese fighter jet from a Chinese aircraft carrier. Yomiuri Shimbun reported the possibility that Chinese aircraft carriers are constantly present in the sea around Japan, including the Liaoning, the Shandong and the Fujian. China also is engaged more frequently in joint exercises with Russia around Japan.
 
Japan is strengthening its efforts to gain support from like-minded countries. The Defense ministers of Japan and Australia met in Tokyo on the day after the radar illumination. They announced the establishment of a Framework of Strategic Defense Coordination and welcomed the progress on Australia’s introduction of a Mogami-class frigate. “We are deeply concerned by the actions of China in the last 24 hours,” the Australian defense minister, Richard Marles, said at the press conference.
 
Although Japan and China have established a hotline between them to avoid an accidental conflict, the countries did not use the line during the radar illumination event – indeed, there is no evidence that it has ever been used. Japan thus has no viable channel to maintain a security dialogue with China. Japan likely expects the United States to communicate on its behalf with China, which at this writing does not appear to have happened. Takaichi was delighted with President Donald Trump when, during her November call with him, he invited her to call him anytime she wants. Tokyo is watching Trump’s actions on this matter but has seen nothing so far.

Monday, December 8, 2025

Asia Policy Events, Monday December 8, 2025

WITA’S TRADE & TECH SUMMIT. 12/8, 9:00am-1:30pm (EST), HYBRID. Sponsor: Washington International Trade Association (WITA). Speakers: Ambassador Rick Switzer, Deputy United States Trade Representative, Office of the U.S. Trade Representative; Moderator: Gary Shapiro, CEO and Vice Chair, Consumer Technology Association; Brandon Remington, Deputy Under Secretary for Policy, International Trade Administration, U.S. Department of Commerce; Arrow Augerot, Head, International Policy, Americas, Amazon; Whitney Baird, President & CEO, United States Council for International Business; Jason Oxman, President & CEO, Information Technology Industry Council; Robert Porter, Chief Global Affairs Officer, Coupang; Jordan Heiber, Vice President of International Digital Economy Policy, U.S. Chamber of Commerce; Emily Benson, Head of Strategy, Minerva; Amy Morgan, Vice President, Trade Compliance, Altana; Matthew Schruers, President and CEO, Computer and Communications Industry Association; John Corrigan, Senior Director, Trade and Industrial Strategy, Silverado Policy Accelerator; Rob Atkinson, President, Information Technology & Innovation Foundation; Geoffrey Gertz, Senior Fellow, Center for a New American Security; Dr. Alina Polyakova, President and CEO, Center for European Policy Analysis; Hon. Nazak Nikakhtar, Partner, National Security Chair, Wiley Rein LLP; Representative Suzan DelBene (D-WA-1), U.S. House of Representatives; Representative Darin LaHood (R-IL-18), U.S. House of Representatives; Josh Kallmer, Chief Global Affairs Officer, Zoom Communications Inc.

IS NORTH KOREAN DENUCLEARIZATION DEAD? 12/8, 11:00-11:45am (EST), VIRTUAL. Sponsor: CSIS. Speakers: Victor Cha, President, Geopolitics and Foreign Policy Department and Korea Chair, CSIS; Distinguished University Professor, Georgetown University; Cho Byung Jae, Former Chancellor, Korea National Diplomatic Academy; Jun Bong-geun, Professor Emeritus, Korea National Diplomatic Academy. 

ADDRESSING CONFLICT OF LAWS AND FACILITATING DIGITAL PRODUCT PASSPORTS FOR CRITICAL RAW MATERIALS VALUE CHAINS: FROM CENTRALISATION TO MUTUAL RECOGNITION. 12/8, Noon-1:00pm (EST), HYBRID. Sponsor: U.S.-Asia Law Institute, NYU School of Law. Speaker: Dr. Luke Nottage, Professor, Comparative and Transnational Business Law, Sydney Law School.

OUT OF BALANCE: WHAT’S NEXT FOR GROWTH, WEALTH, AND DEBT? 12/8, Noon-1:00pm (EST), VIRTUAL. Sponsor: McKinsey Global Institute. Speakers: Bill Dudley, Former President, Federal Reserve Bank of New York; Rebecca Patterson, Vice Chair, Bretton Woods Committee; Matt Peterson, Ideas Editor, Barron’s; Alan Taylor, Member, Monetary Policy Committee, Bank of England; Jan Mischke, Partner, McKinsey Global Institute; Olivia White, Director and Senior Partner, McKinsey Global Institute.

TAIWAN ROUNDTABLE: NAVIGATING TAIWAN’S AI FUTURE: POLICY, INNOVATION, AND GOVERNANCE. 12/8, Noon-2:00pm (EST), IN PERSON ONLY. Sponsor: George Washington University. Speakers: Susan Aaronson, Research Professor, Director, Digital Trade and Data Governance Hub, GWU; Hsin-Chung Liao, Associate Professor, Chair of the Department of Public Administration, National Chengchi University; Cheng-Ming Wang, Director-General, Department of Digital Service, Ministry of Digital Affairs, Taiwan.

THE TRUMP ADMINISTRATION AND CONGRESS: A CONVERSATION WITH SENATOR CHRIS VAN HOLLEN. 12/8, 12:30-1:15pm (EST), VIRTUAL. Sponsor: Carnegie. Speakers: Chris Van Hollen, U.S. Senator (D-MD); Aaron David Miller, Senior Fellow, American Statecraft Program.

Takaichi Pressured Outside, Protected Inside

Takaichi Pressured Outside, Protected Inside

By Takuya Nishimura, Senior Fellow,  Asia Policy Point
Former editorial writer for the Hokkaido Shimbun
You can find his blog, J Update here.
December 1, 2025

The government of Prime Minister Sanae Takaichi is running into trouble in its international relations, but it is developing firm footing domestically. The diplomatic row between Japan and China, stemming from Takaichi’s reference to a Taiwan contingency, keeps on escalating. As China extends its anti-Japan campaign to Western countries, Japan continues to officially reject China’s demand that Takaichi retract her comment. At home though, Takaichi has maintained her domestic support and focus.
 
Takaichi spoke by telephone with U.S. President Donald Trump on November 25, when he called her just hours after his call with Chinese President Xi Jinping. She reported that Trump spoke with her warmly and that he encouraged her to call him anytime. But she did not reveal to the press the details of her conversation with Trump on Taiwan issue, nor did the White House.
 
Nor was the substance of the Japan-U.S. summit talk released by Japanese officials, but The Wall Street Journal reported that Trump asked Takaichi to “lower the volume on Taiwan.” This snippet of the call, different in tone from Trump’s usual calls, and the fact that he initiated it indicates that Trump is worried. Unusually for a close ally, Takaichi did not attempt to alert the U.S. about her comment ahead of time. Prime Minister Junichiro Koizumi’s visit to North Korea and meeting with its leader Kim Jong Il in 2002 was a similar change of policy unanticipated by the White House.
 
China’s furious response to Takaichi’s comment is based (among other things) on the fact that Imperial Japan once occupied Taiwan. In one reaction, a letter to the United Nations, China insisted on “its right of self-defense under the UN Charter.” This “right,” which appears in several places in the charter, would allow a country to take military action against an “enemy state.” Japan criticized China’s argument as baseless, labeling the clause obsolete. Notably, when Xi sought Trump’s support in dealing with Japan, he also asked the United Kingdom and France to support the one-China policy.
 
Although Takaichi has refused to retract her statement, she may be beginning to step back from it. In a meeting of the Committee on Fundamental National Policies in the Diet, the leader of the Constitutional Democratic Party of Japan, Yoshihiko Noda, asked whether Takaichi’s comment had been properly prepared as a Japanese government official statement and whether she had instead expressed a personal view. Takaichi explained that Japan’s actions in the event of a Taiwan contingency would be based on the actual situation -- functionally correcting her original statement.
 
Takaichi also attributed her controversial comment to the member, Katsuya Okada, who asked about the Taiwan contingency in a Lower House committee hearing on November 7. “While I did not want to say about a specific possibility, I sincerely answered the question, because I was asked with specific cases,” Takaichi told Noda. Supporters of Takaichi have accused Okada of setting a trap for Takaichi.
 
In a poll conducted by Mainichi Shimbun in late November, 50 percent of respondents believed that Takaichi’s comment on Taiwan was appropriate while 25 percent thought it would hurt Japan. As China escalates its diplomatic and economic actions against Japan, public sympathy for Takaichi grows, potentially inflaming rather than cooling sentiments about China.
 
Elsewhere on the prime minister’s agenda, Takaichi’s handling of domestic politics looks to be going well. The Liberal Democratic Party (LDP) added three independent lawmakers to its parliamentary group in the House of Representatives. These lawmakers had left the Japan Innovation Party (JIP) in September out of frustration with JIP leadership, but they voted for Takaichi as prime minister in October. LDP leaders invited them to join the LDP group.
 
With the additional three members, the LDP accounts for 199 seats in the Lower House. With the 34 seats held by JIP, the coalition has secured a simple majority of 233 seats out of 465 in the Lower House. As provided in Japan’s constitution, the Lower House has the power to reject Upper House decision on budget bill and non-confidence resolution against prime minister. The Upper House does not have the reciprocal power on those two issues. Thus, the coalition can pass its own budget bill simply with the Lower House majority. The coalition can also block a no-confidence resolution against Takaichi since it can disregard possible opposition from the Upper House.
 
The Takaichi Cabinet has approved a supplemental budget of 18.3 trillion yen, which includes an economic stimulus plan to help households suffering from price inflation. The supplemental budget also proposes 1.1 trillion yen in defense spending. This appropriation would enable the government to reach the target floor for defense spending of 2 percent of GDP two years earlier than scheduled. We expect the bill to be submitted to the Diet and passed with the votes of the LDP-JIP coalition by the end of current extraordinary session on December 17.
 
The LDP and JIP agreed on reductions in Diet seats, an issue that JIP considers its top legislative priority for the coalition. The two parties hope to submit a bill that, within a year, would eliminate 25 seats in single-seat districts and 20 seats in the proportional districts in the House of Representatives. Although JIP is stressing the importance of the seat reduction agreement, it is not at all clear that the agreement will find a broad consensus in the parties. In any case, JIP is showing no sign of leaving the coalition with the LDP.
 
Hirofumi Yoshimura, the leader of JIP as well as the Governor of Osaka has said that Takaichi need not retract her comment on Taiwan. He has also refused to attend any event held by the Chinese Consulate General in Osaka in response to the Consul General’s offensive comments about Takaichi over social media. JIP’s apparent unconditional support for the Takaichi effectively protects the administration. For now, her government is insulated from domestic opposition.

Sunday, December 7, 2025

Alliance Burden Sharing in Asia

South Korea Redefines Alliance Burden Sharing 

After Trump’s Asia Visit

by Daniel Sneider, lecturer in East Asian studies at Stanford University, non-resident distinguished fellow at the Korea Economic Institute of America, and APP Member. First Published November 11, 2025 on the Peninsula Blog of the Korea Economic Institute.


South Korea’s Asia-Pacific Economic Cooperation (APEC) summit showcased a tightening defense partnership with the United States. The U.S. push for allies to shoulder greater security burdens converged with South Korean efforts to deepen autonomy and prepare for long-term uncertainty about U.S. commitments, creating a mix of deeper operational integration and quiet hedging.

The Trump administration, under the umbrella of “alliance modernization,” is pushing for increased South Korean defense spending and a shift in U.S. focus from solely countering North Korea to “strategic flexibility,” which would allow U.S. forces in South Korea to assume regional missions aimed mainly at China. South Korea is expanding defense investment, accelerating transfer of wartime operational control (OPCON), and pursuing nuclear fuel capabilities, all while reiterating that it will not be dragged into a broader confrontation with China.

The upshot is a more capable, forward-leaning alliance that is also more transactional, competitive, and sovereignty-driven. The question for policymakers is whether this becomes the new normal of the alliance or the first phase of a more fragmented Indo-Pacific.

Another Layer
A similar tightening of ties occurred in parallel between President Donald Trump and new Japanese Prime Minister Sanae Takaichi, as well as her surprisingly warm meeting with Korean President Lee Jae Myung on the sidelines of APEC. Beneath this official narrative of drawing closer, however, there is another layer to security developments.

“Both Korea and Japan are trying to keep the Americans locked in while they are preparing for the day when America doesn’t care enough to protect you,” says a Seoul-based observer familiar with the thinking of both Korean and Japanese senior officials, who preferred to comment on background. “The trade and investment deal components of this are ultimately protection money,” he added. “They wouldn’t be doing it if there wasn’t the risk of losing security guarantees from the U.S.”

The trade pressures may reinforce the need to tighten security ties, but they also undermine confidence in the alliance, some experts believe.

“U.S. expressions of support for allies are in the context of helping them to assist the U.S. coalition against China,” says Bruce Klingner, senior fellow at the Maureen and Mike Mansfield Foundation and former CIA analyst. “Yet, that effort is undermined by Trump’s arbitrary, protectionist tariffs, which pummeled allies worse than opponents.

The United States, Klingner added, forced South Korea “into a disadvantageous trade deal” that violates the U.S.-South Korea free trade agreement (KORUS FTA).

Nuclear Submarines?
The centerpiece of an apparent new level of U.S.-South Korea security cooperation is an agreement for joint production of nuclear-powered submarines at a South Korean-owned shipyard in Philadelphia.

“South Korea will be building its Nuclear Powered Submarine in the Philadelphia Shipyards, right here in the good ol’ U.S.A.,” Trump proclaimed in a October 29 post on Truth Social. “Shipbuilding in our Country will soon be making a BIG COMEBACK.”

Some experts claimed this was a breakthrough toward strategic interdependence.

“This move dismantles the old anmi-gyeongjung (security with the United States, economy with China) framework,” wrote Seong-Hyon Lee, a senior fellow at the George H.W. Bush Foundation for U.S.-China Relations, in The Interpreter. “South Korea is no longer merely buying American security; it is integrating its industrial base with that of the United States to form a single, strategic-economic bloc,” argued Lee.

But subsequent developments call this into question. Senior executives at Hanwha, the South Korean firm that has taken ownership of the Philly Shipyard, admitted that the facility is not capable of building a nuclear-powered submarine, not only technically but also because of insufficient security to conduct such secret work.

Senior South Korean officials have since told the National Assembly that the intention is, in fact, to build those submarines in South Korea, with the clear goal of enhancing the country’s defense capabilities, independently of the United States.

“Investing in a submarine facility at the Hanwha Philly Shipyard would not be realistic, and neither would it be realistic to contract with an American company like General Dynamics to build the submarines,” National Security Advisor Wi Sung-lac told the National Assembly’s House Steering Committee. While paying due respect to the alliance, “we’re emphasizing defense autonomy as we seek to take on a bigger role and make greater contributions,” Wi said.

The Greater Prize
Behind the nuclear submarine agreement lies a deeper, and more significant, agenda for the Lee administration: a revision of the civilian nuclear cooperation agreement, known as the 123 Agreement, to give South Korea the ability to enrich nuclear fuel and reprocess spent fuel, both of which are important to the expansion of the country’s nuclear power industry but also needed to operate submarine reactors. While the submarine agreement has gotten most of the media attention, the 123 Agreement’s revision is the greater prize.

South Korea has long sought this goal but has been blocked by the United States, which saw this as a doorway to potential nuclear weapons proliferation. By framing this as an issue of civilian nuclear power development, however, South Koreans in both conservative and progressive camps saw this as a means of acquiring near-threshold capability to go nuclear, without yet crossing the line—what some refer to as nuclear latency.

South Korean officials, in this view, understood that an appeal to build their nuclear power industry was not going to appeal to President Trump and his senior officials. But it could gain support if packaged as part of taking more responsibility for their own defense.

“Mr. Trump either did not understand the implications, or did not care,” wrote The Economist. “South Korea’s moves toward an insurance policy betray great unease about the future of its alliance with America.”

If the president did not understand what he signed off on in Seoul, national security officials in Washington with long experience on these issues are apparently aware of the Pandora’s box that was being opened. According to Korean media reports, the delay in publishing a written joint document detailing the agreements reached on tariffs and national security issues is due to an internal review in Washington.

A senior official in the South Korean government told the Hankyoreh newspaper that “the US Department of Energy is apparently upset with how many concessions Korea received in regard to the two countries’ nuclear energy agreement.”

OPCON transfer and the China question
The delay in issuing a joint statement following the Security Consultative Meeting between U.S. Secretary of Defense Pete Hegseth and South Korean Minister of National Defense Ahn Gyu-back, along with senior officials, may have partly been due to a lack of detailed agreement on key issues.

The two sides discussed the transfer of wartime OPCON, based on a previous plan that set out three phases to verify the operational capabilities of a future Combined Forces Command under a South Korean commander. The transfer has been stalled due to delays in U.S. verification and the lack of urgency by the previous conservative government.

In the joint meeting and in a direct meeting between Hegseth and Lee, the South Korean leader expressed his desire to complete the second phase by 2026 and move rapidly toward finalizing the transfer. Lee pitched this as a gesture toward the Trump administration’s expressed desire to shift its defense role.

“The early recovery of wartime operational control within my term will be an important opportunity to further deepen and develop the South Korea-U.S. alliance,” Lee reportedly told Hegseth. “If our military capabilities are significantly strengthened and we take the lead in defending the Korean Peninsula, the U.S. defense burden in the Indo-Pacific region will also be reduced.”

Hegseth made no specific commitments on concluding the verification process on South Korea’s desired timetable. There was similar ambiguity on the issue of “strategic flexibility,” an issue that has long been discussed between the two allies. The term refers to the idea that U.S. forces based in South Korea might be deployed out of the peninsula for missions other than the defense against North Korean aggression.

The two sides have sidestepped this issue by agreeing in general terms that U.S. forces can be moved wherever the U.S. commander-in-chief wants, while retaining the understanding that those forces are there to defend South Korea against a North Korean attack. South Korea has long insisted that the 28,500 U.S. forces based in South Korea are essential for the defense against a potential North Korean attack, but also as the trigger for deploying massive U.S. forces committed under joint operational plans.

Behind this issue lies South Korean concerns that the Trump administration might seek a peace deal with North Korea that could lead to the withdrawal of U.S. forces from South Korea. Hegseth and senior U.S. military officials have pledged to maintain the force commitment in South Korea. But he also alluded to their use in contingencies beyond the Korean Peninsula, most likely around Taiwan.

“At the same time, we need to enhance flexibility to respond to other contingencies in the region,” Hegseth said following the security talks. He called for deeper coordination between the two countries to expand the strategic flexibility of U.S. Forces Korea (USFK).

South Korea, however, is not committed to a wider confrontation with China. Lee, while shoring up ties with the United States, has cultivated closer relations with China, particularly in the realm of economic cooperation. The APEC sideline meeting between Lee and Chinese leader Xi Jinping reportedly featured extensive discussions and personal warmth. It was notably different in tone from the brief thirty-minute meeting between Xi and Takaichi, which was clearly frosty.

“There will be disagreement between the U.S. and South Korea on China policy, but a greater similarity of views on North Korea because both Trump and Lee want to engage North Korea,” observes Klingner. “On China, Lee will still try to straddle the fence.” The meeting with Xi focused on the restoration of economic relations and a plea to Xi to encourage North Korea to resume engagement.

The goal of pairing security ties with the United States and economic ties with China has been a consistent feature of South Korean foreign policy, including under the previous conservative Yoon Suk Yeol administration, which was also careful about offering overt support for military contingencies around Taiwan.

“As the role of U.S. Forces Korea expands, it is crucial to establish safeguards through sufficient consultation to ensure that South Korea is not drawn into regional conflicts against its will,” Donga Ilbo commented.

Multilayered Policy
The effort by South Korean leaders to balance the competing demands of their ally, the United States, and the pursuit of national interests in Northeast Asia is not new. The goal of greater defense self-reliance has also been long-standing, particularly by progressive South Korean administrations. The difference now lies mostly in the volatile nature of the Trump administration and uncertainty about its policy direction. That drives South Korea and Japan, and other U.S. allies, to increasingly think about lessening dependency on the United States.

“Unpredictability makes everyone nervous, and it leads them to consider other alternatives,” says Klingner.

Saturday, November 29, 2025

Takaichi's China Test

Above is Sanae Takaichi when she was running for LDP president in 2021, holding forth at a rally of Tibetan, Uighur, Hong Kong and Taiwan independence activists inside LDP headquarters. Credit to Michael Cucek, Temple University, Japan

Japan Faces China’s Wolf Warriors


By Takuya Nishimura

Senior Fellow, Asia Policy Point

Former editorial writer for the Hokkaido Shimbun

You can find his blog, J Update here

November 25, 2025

A careless reference to a “Taiwan contingency” by Prime Minister Sanae Takaichi drew a vocal official retort from China. As Beijing plays its “wolf warrior diplomacy” gambit against Japan, Tokyo has not responded with any effective countermeasures. Japanese foreign policy officials predict that the bilateral disputes will not be settled any time soon and that the negative consequences to Japan of such a failure are growing. It may also be true that China is using Takaichi’s comment as an excuse to broadcast its longstanding views on the place of Taiwan in China’s sphere of influence.

On November 7 at the Diet discussion, Takaichi said that a Chinese blockade around Taiwan deploying warships with the use of force would constitute a “survival-threatening situation” for Japan. In such a condition, Japan could invoke its right to collective self-defense to justify activating its self-defense forces with a country with a close relationship with Japan. The “country” in this context is presumably the United States – although U.S. President Donald Trump has yet to demonstrate the closeness of this relationship.

 Before delivering her comment, Takaichi had had a middle-of-the-night (or early morning) meeting at 3 a.m. to discuss a possible “Taiwan contingency” with her staff. Although Takaichi told her staff after the Diet discussion that she might have gone too far, it is likely that her comment on Taiwan was what she meant as she had consulted with her diplomatic advisers. She has refused to retract her words.

China sees Taiwan as one of its core interests. As a result, Beijing would and did respond aggressively to Takaichi. Whether her remark was merely careless or whether it was an affirmative line in the sand mattered not to China. The Chinese Consul General to Osaka, Xue Jian, posted on social media a comment suggesting the beheading of the “filthy heard” of the Japanese leader. Beijing also issued recommendations to its citizens, including college students, not to travel to Japan. China demanded that the Takaichi administration retract the statement.

Moreover, China decided to treat Takaichi’s comment as a form of military intimidation. The People’s Liberation Army Daily regarded Takaichi’s observation as interference in China’s internal affairs and an infringement on China’s sovereignty. “Any external interference forces will be crushed to ashes,” the paper announced. Four China Coast Guard vessels entered territorial waters around the Senkaku Islands on November 16.

China continues to apply diplomatic pressure on Japan. China’s permanent representative to the UN, Fu Cong, sent a letter to UN Secretary General, Antonio Guterres, on November 21, stating that Japan had issued a threat of force against China for the first time. China froze again its imports of Japanese seafood by imposing stricter inspections of Japanese cargo. Until this decision, Japan had since May been able to export goods to China with few restrictions.

Other ostensibly private sector actions followed. Some Chinese airlines stopped flights to Japan. Chinese travel agencies cancelled reservations to hotels in Japan. These measures have begun to have an impact on the Japanese economy. The worst decision for Japan was China’s embargo of exports of rare earth minerals an action that Japan had experienced in 2010. Rare earth minerals are crucial for the production of cars and smart phones.

These measures represent China’s confrontational policy in foreign relations, which is called “wolf warrior diplomacy,” named after a 2015 Chinese film. Changing from traditional diplomacy avoiding controversy, China actively seeks its utmost interest by aggressively taking advantage of any diplomatic resources including economic sanctions or military pressure.

Japan’s position has been that Takaichi’s comment did not cross the line that her predecessors had drawn. The Prime Minister tried to explain this view by sending the Director General of Asian and Oceanian Affairs Bureau in Ministry of Foreign Affairs, Masaaki Kanai, to Beijing on November 18. China had none of it.

After Kanai’s meeting, Chinese media broadcast a scene with the the Foreign Ministry’s Director General Liu Jinsong looking down contemptuously on Kanai. Liu had his hands in his trousers’ pockets while Kanai looked to be bowing to Liu. Kanai was obviously not ready for the press.

Although hawkish groups in Japan have called on the government to declare the Consul General to Osaka a persona non grata and send him home, the previous four examples of Japan’s expulsion of foreign diplomats are based on crimes or a highly serious deterioration in bilateral relations. It is questionable whether the expulsion can be applied to the posting on SNS of a Chinese diplomat who is critical of the Japanese government.

The Takaichi administration has miscalculated in its diplomatic relations with China. She mostly had no idea that her comment would cause China to respond so stridently. “I’m not going to discuss a specific issue in this venue anymore,” Takaichi said before the budget committee of the Lower House. But a prime minister cannot be responsible for Japan’s sovereign people without discussing specific issues in the Diet.

Takaichi made her comment on Taiwan just a week after her meeting with Chinese President Xi Jinping in South Korea. She and her staff did not recognize the significance of China’s decision to meet with the new hawkish leader of Japan despite concerns of the Chinese (as well as other nations) about her visits to the Yasukuni Shrine and comments supporting revisionist history. Tokyo was not considerate and Takaichi’s surprise statement caused Xi to lose face with the Chinese public.

The first response of Trump to the contretemps was not to Takaichi’s advantage. When asked about it in an interview with Fox News on November 11, Trump observed that “a lot of our allies are not friends either.” Adding, he said “Our allies took advantage of our trade more than China did.” Japan had little advance knowledge of this change of U.S. policy from the Biden administration toward its allies or China. Trump takes a softer approach to China while eschewing close relationships with traditional allies.

A second and possibly more troubling event was Xi’s call to Trump in the morning of Monday, November 24. Xi’s purpose was to discuss Taiwan, specifically that Taiwan’s return to China is central to the post-World War II international order. At least one U.S. press report has linked Xi’s call to Takaichi’s statement, but there appear to be no reports that Xi mentioned Japan or Takaichi by name. It may be fair to say that China’s disproportionate response to Takaichi reflects a felt need that existed well before she came on the scene to promote its influence over Taiwan.

Trump called Takaichi that evening. Although she did not reveal the substances of their conversation about the Japan-China row over Taiwan, Takaichi told the press that she was briefed on the Trump-Xi call and Trump said she should call him whenever she wanted. The time lag between Trumps calls with China and Japan, however, appears to undermine her efforts to shape a “diplomacy that flourishes on the world’s center stage.”

Takaichi, as the first female premier of Japan, hopes to be the Margaret Thatcher of Japan. The conservative “Iron Lady” was a hardliner against the Soviet Union. But Japanese observers expect that Takaichi will more likely follow one of two recent and different models: Liz Truss of the UK or Giorgia Meloni of Italy. Truss’s tenure was brief: she stepped down shortly after her installation when the markets looked unfavorably on her tax cut policy that lacked reliable, alternative fiscal resources. Meloni has been more successful. She has adjusted her conservative agenda to account for the realities of domestic and international politics.

Thus far, Takaichi has been able to keep her relationship with U.S. President Trump on an even keel. Maintaining a dialogue with China is more difficult. Her active spending for an economic stimulus has met with skepticism from the market, which now shows a triple low of stocks, bonds, and the Japanese yen a reminder for Japan about the U.K.’s Truss Shock in 2022.

It is true that Takaichi has high approval rate in current polls, despite concerns on relations with China stemming from her own speech. However, the honeymoon period for theTakaichi administration is getting close to an end. If China’s measures start impacting Japan’s economy or security, the one-month-old Takaichi administration may similarly find itself in a Truss situation with questions about its survival.

Sunday, November 23, 2025

Asia Policy Events, Monday November 24, 2025

BEHIND THE BUILD: DRIVING FACTORS OF CAPACITY AND EFFECTS OF GEOPOLITICAL RISKS ON THE SHIPBUILDING MARKET. 11/24, 9:30am-5:30pm (CET), 3:30-11:30am (EST), HYBRID. Sponsor: OECD. Speakers: Ines Nastali, Senior Supply Chain Analyst, S&P Global Intelligence & Analytics; Jayendu Krishna, Director and Head of Maritime Advisors, Drewry; Tim Walters, First Marine International; Jacob Gunter, Head of Program, Economy and Industry, Merics; Capt. Rahul Khanna, Global Head Marine Risk Consulting, Allianz; Brooke Weddle, Senior Partner, McKinsey; Ryan Brukardt, Senior Partner, McKinsey; and more.

TESTING THE WATERS: UNREGULATED MINING IN THE MEKONG REGION. 11/24, 9:00-10:30am (EST), VIRTUAL. Sponsor: Stimson Center. Speakers: Regan Kwan, Research Analyst, Southeast Asia Program and the Energy, Water, and Sustainability Program, Stimson Center; Pai Deetes, Regional Campaigns Director, Southeast Asia Program, International Rivers; Saeng Lee, Vice President, Romphothi Foundation, Chiang Mai, Thailand; Wan Wiriya, Assistant Head, Environmental Science Research Center, Faculty of Science, Chiang Mai University; Moderator: Brian Eyler, Senior Fellow and Director, Southeast Asia Program, Stimson Center.

SUSTAINABLE TRADE INDEX 2025. 11/24, 10:00am (EST), VIRTUAL. Sponsor: Association of Foreign Press Correspondents in the United States (AFPC-USA), in partnership with the Hinrich Foundation. Speaker: Dr. Christos Cabolis, Chief Economist, IMD World Competitiveness Center.

THE IMPOSSIBLE STATE LIVE PODCAST: WHAT DOES CHINA WANT? 11/24, 11:00-11:40am (EST), VIRTUAL. Sponsor: CSIS. Speakers: Victor Cha, President, Geopolitics and Foreign Policy Department and Korea Chair; Henrietta Levin, Senior Fellow, Freeman Chair in China Studies; Zenobia Chan, Assistant Professor of Government, Georgetown University.

BOOK TALK: MIDDLE EAST CRISES. 11/24, 11:00-11:45am (EST), VIRTUAL. Sponsor: CSIS. Speaker: Author James F. Jeffrey, Former U.S. Special Representative for Syria Engagement; John J. Hamre, President and CEO, CSIS, and Langone Chair in American Leadership; Seth G. Jones, President, Defense and Security Department, CSIS; Eliot A. Cohen, Arleigh A. Burke Chair in Strategy, CSIS; Mona Yacoubian, Director and Senior Adviser, Middle East Program, CSIS. PURCHASE BOOK

PROMISES, POWER, AND PROTECTION: THE WEST'S DEBATE OVER SECURITY GUARANTEES FOR UKRAINE. 11/24, 11:00am-Noon (EST), VIRTUAL. Sponsor: American German Institute (AGI). Speaker: Iulian Romanyshyn, DAAD/AGI Research Fellow; Moderator: Jeff Rathke, President and Director of the Foreign & Security Policy Program, AGI.

PAST, PRESENT, AND FUTURE OF IRAN-ISRAEL RELATIONS. 11/24, Noon-2:00pm (EST), VIRTUAL. Sponsor: Center for International Studies, MIT. Speaker: Peter Krause, Associate Professor of Political Science, Boston College.

Saturday, November 22, 2025

Japan’s PM Takaichi Searches for Policies

Launch of Five LDP/JIP Working Groups 

By Takuya Nishimura, Senior Fellow,  Asia Policy Point
Former editorial writer for the Hokkaido Shimbun
You can find his blog, J Update here.
November 17, 2025


The Liberal Democratic Party (LDP) and the Japan Innovation Party (JIP) launched five working groups to implement agreements they reached when forming their coalition. The groups will address five issues: reductions in the number of Diet seats, regulation of political contributions from companies and organizations, amendment of Article 9 of the constitution, reform of the governmental system, and social security reform. Although these issues are a top priority for JIP, the LDP views them as secondary but necessary to discuss in order to keep JIP in the leading coalition. Thus, even at the beginning of this exercise, the two parties are not necessarily headed in the same direction.
 
The working groups met between November 11 and 13. Several lawmakers leading the working groups attended and discussed how to proceed. Neither party has a clear idea of what the groups are likely to accomplish.   
 
Here are the remits for each of the five working groups:
 
1. Reduction of Diet Seats
Headed by Katsunobu Kato (LDP) and Yasuto Urano (JIP)
JIP believes that Diet seat reduction will boost the party’s popularity based on what they think was the success of seat reductions in the Osaka Prefectural Assembly and Osaka City Assembly. JIP also believes that the reductions appealed to voters who were frustrated with too many assembly members who enjoyed privileges as representatives of the people. JIP sold their policy as a self-sacrificing reform.
This issue was an “absolute condition” for the JIP to enter the coalition. The coalition agreement states that the two parties will “seek” to submit and enact a bill in the 2025 extraordinary session that would eliminate 10 percent of the seats in the House of Representatives. The current extraordinary session will close on December 17.

The LDP Secretary General, Shun-ichi Suzuki, has said that it would be difficult for the two parties to pass the bill by the end of the session. The JIP’s co-leader, Fumitake Fujita, has admitted that the coalition cannot bring all of the election reform matters to a close by the end of the year. Prime Minister Sanae Takaichi has said that she will seek a broad consensus for reform, including the buy-in of the opposition parties. At its first meeting on this issue, the working group merely reconfirmed the October agreement.

Some LDP lawmakers have argued that this Diet seat reduction should be discussed in the broader context of Diet’s election system. Such discussions would include new multiple-seat districts in the House of Representatives to replace single-seat districts. Other LDP members would support only a bill limited to a scheduling of the seat reduction.

Despite an obvious lack of consensus even within the coalition, the JIP does not show any sign of leaving the coalition if the seat reduction does not take place. The JIP’s “absolute condition” for joining the coalition is not non-negotiable; JIP will stay with the LDP provided that the LDP continues to discuss this issue with the JIP.
 
2. Political Contributions from Companies and Organizations
Headed by Sadahisa Furukawa (LDP) and Yasuto Urano (JIP)
Just like the opposition parties, the JIP has advocated for the prohibition of political donations from companies and organizations. The LDP, by contrast, heavily relies on these contributions. After Komeito left the coalition with the LDP, frustrated by the LDP’s laziness on this reform, JIP tried to include this issue in the coalition agreement. However, by its terms, the agreement provides only that the coalition will resolve the issue by the end of Takaichi’s term as LDP president, which will be September 2027. The agreement thus was an obvious setback for JIP.

JIP wants to eliminate donations from companies and organizations since it identifies itself as a reform party. The LDP, however, calls for “more transparency than prohibition,” arguing that a ban on contributions infringes the freedom of political activity that is guaranteed to each business entity. In the working group’s first meeting,, the parties could not even set a schedule for their next meeting.
 
3. Constitutional Amendment
Headed by Yoshitaka Shindo (LDP) and Nobuyuki Baba (JIP)
JIP is more radical on amending Article 9 than is the LDP. JIP argues that Sentence 2 of Article 9, which currently prohibits the use of military force, should be replaced by language that creates a national defense force. The LDP takes a more nuanced and less sweeping view: the party would add an emergency clause to deal with disaster or invasion by a foreign country and a description of a self-defense force in Article 9.  The LDP would not, however, repeal Sentence 2.

Although the coalition agreement calls for the parties to agree by the end of FY2026 on language for a proposed constitutional amendment, neither party is really focused on this issue. At its first meeting, the working group simply confirmed that the parties will accelerate their discussions. We may assume that the parties have not yet assembled the necessary two-thirds majorities in both chambers of the Diet.
 
4. Reform of Governmental System
Headed by Ichiro Miyashita (LDP) and Alex Saito (JIP)
For JIP, reform of the governmental system is all about a “backup capital initiative” —the designation of Osaka as the backup capital in the event of a disaster in Tokyo. With its main office not in Tokyo but in Osaka, JIP primarily represents Osaka’s interests. Although it failed to win two referendums in Osaka on the “Osaka Capital Initiative,” JIP still hopes to move the political functions of Japan’s capital from Tokyo to Osaka. The backup capital initiative will come into play if a disaster occurs. This can be a revised version of the Osaka Capital Initiative.

Most LDP lawmakers have little interest in this matter since it originates in the JIP.  Undeniably, the issue is less urgent than the issues, such as political reform and management of price inflation, taken up by the other working groups. In the first working group meeting, both parties agreed to prepare talking points for the next meeting.
 
5. Social Security Reform
Headed by Norihisa Tamura (LDP) and Satoshi Umemura (JIP)
Social security reform is another crucial issue for JIP. The party included it in their campaign platform for the Upper House elections in July. JIP promised an annual 60-thousand-yen reduction in social insurance premiums.

A specific issue that JIP has raised is the reduction of the costs of “over the counter (OTC)” medicines whose formularies are close to those of commercial drugs in drug stores. The cost of OTC medicines is funded by health insurance. Both parties shared at the first meeting of this working group an end-of-the-year target of the end of 2025 to reach an agreement. 
 
The Takaichi administration recognizes that these five working groups are necessary to maintain its coalition government. However, the LDP has its own history on each of the issues. It is unlikely that formation of a coalition will suddenly bridge the wide gap between the two parties. In the past, the LDP used working groups in the coalition with Komeito and in the trilateral coalition with the Japan Socialist Party and New Party Sakigake.
 
It is far more important for Takaichi to implement her own agenda. She established some working groups in her government to promote economic and security policies, including the Panel on Economic Growth Strategy, as soon as she formed her Cabinet.
 
In her discussion at Plenary Sittings of the House of Representatives, Takaichi said that the Shinzo Abe administration’s economic growth strategy, which was one of the three pillars of Abenomics, had been insufficient to boost the Japanese economy. Takaichi intends that this new panel will discuss economic strategy regardless of budgetary requirements, while the traditional Council on Economic and Fiscal Policy will manage the balance between revenue and spending.
 
Takaichi also convened a Cabinet meeting on Foreigners to address problems with foreign visitors in Japan. Some conservative parties such as Sanseito call for stricter regulation. Takaichi wants to take on this issue to bring the voters who voted for those conservative parties back to the LDP. She has also directed the council on the establishment of National Intelligence Bureau to discuss enhancement of the intelligence community.
 
However, there already are bodies in the government to discuss these issues, which Takaichi hopes will produce specific policies. Establishing an array of working groups to pursue various policies was a common practice for previous prime ministers. Launching working groups does not mean that policies a prime minister has promised to the voters will become a reality.