New partnership aims to boost Japan’s low e-waste recycling rates while strengthening domestic resource security


Japan Strengthens Domestic Recycling With Itochu-ERI Collaboration

Japan is taking steps to improve its handling of electronic waste, with Itochu partnering with U.S.-based Electronic Recyclers International (ERI) to launch a new recycling venture.

The project will centre on recovering valuable materials from discarded electronics, commonly referred to as “urban mines”. With only around 20% of e-waste currently recycled in Japan, there is considerable room for expansion. 

The initiative reflects rising concerns over dependence on imported resources in an increasingly uncertain geopolitical environment. By working with ERI, which specialises in IT disposal and recycling, Itochu hopes to strengthen domestic recycling while supporting a market expected to grow steadily. 


Iran War Drives Surge In Chinese Renewable Energy Stocks

Investors are shifting towards Chinese renewable energy stocks as the Iran war drives up oil prices and intensifies concerns over energy security.

The trend reflects expectations that countries will accelerate investment in alternatives to fossil fuels. China, which leads in sectors such as solar, wind, batteries, and electric vehicles, is seen as particularly well placed to benefit.

Since the conflict began, these stocks have outperformed the broader market. Many analysts expect continued government support and rising export demand, as countries rethink their energy mix and look for more stable, long-term options.

 

Totalenergies Shifts From U.S. Offshore Wind To Fossil Fuel Investment

TotalEnergies is stepping back from offshore wind projects in the United States and redirecting nearly $1 billion into fossil fuel investments instead.

Under an agreement with the U.S. government, wind leases off New York and the Carolinas will be cancelled, and the company will be reimbursed for what it has already spent. The money will now be invested in liquefied natural gas, oil, and gas production.

This reflects a wider shift in policy under President Donald Trump, with a stronger focus on domestic fossil fuels. While some argue this will improve energy reliability, others see it as a setback for clean energy progress.

EDF Faces EU Probe Over State Aid For Nuclear Expansion

EDF is expected to come under investigation by the European Union over a large state aid package linked to new nuclear power plants in France.

The plan involves building six reactors to replace ageing infrastructure and meet growing electricity demand in the coming years. However, EU regulators are concerned that the financial support could further strengthen EDF’s dominant position in the market and make it harder for competitors to enter.

The investigation could delay the project, which is central to France’s energy plans. Austria is also likely to challenge the proposal, given its long-standing opposition to nuclear power.
 

Sogo & Seibu said Wednesday that it would close its iconic Seibu department store in Tokyo's Shibuya Ward at the end of September.

The closure comes as the company failed to reach an agreement on a contract extension with the rights holder for the land and buildings housing the store over the redevelopment of the site.

The Shibuya store opened in April 1968 in an area long known as a youth-culture hub. It anchored the company's department store network, but in recent years it has posted persistent losses.

The closure will cover the A building, which includes the food floor, as well as the B building, housing clothing and sundry goods tenants, and a parking hall. Sogo & Seibu employees currently working at the Shibuya store will be assigned to other posts within the company.

The Loft building, which is owned by Sogo & Seibu, and the Movida building, housing a Muji household goods shop, will remain in operation.

"We would like to express our sincere gratitude to everyone for their support for our Seibu Shibuya store over the years," Sogo & Seibu said.

The move leaves Sogo & Seibu with nine outlets nationwide, with the Seibu Ikebukuro store as its sole presence in Tokyo.
 
 

The average retail price of regular gasoline in Japan fell 13.1 yen from a week earlier to 177.7 yen per liter as of Monday, the industry ministry said Wednesday.

The drop came after the government resumed subsidies for oil wholesalers last week, in the face of surging crude oil prices amid the deteriorating situation in the Middle East.

The decline is the second-largest single-week fall on record, following a 21.7-yen drop just after the provisional gasoline tax rate expired in 2008.

Still, the average gasoline price remains elevated. In mid-February, it hovered around 150 yen per liter.

To ease oil supply concerns and stabilize prices, the government will release state oil reserves starting Thursday, in addition to tapping into private-sector reserves.
 
 

The Japanese government will consider compiling a provisional budget in the event that the fiscal 2026 regular budget is not passed by the April 1 start of the year, an official said Monday.

"We will consider a provisional budget in preparation for unforeseen circumstances," Chief Cabinet Secretary Minoru Kihara was quoted as telling senior members of the ruling Liberal Democratic Party.

Kihara made the remark at a meeting with LDP members, such as Masaji Matsuyama, chairman for the party's members in the House of Councillors, the upper chamber of parliament, and Junichi Ishii, secretary-general for the party in the same Diet chamber. Matsuyama disclosed the remark to reporters.

 

Prime Minister Sanae Takaichi aims to enact the regular budget by the end of this month.

The draft budget has cleared the House of Representatives, the lower chamber, but the outlook is uncertain in the Upper House, where the LDP-led ruling camp is a minority force.
 

 

Japanese stocks dropped after U.S. President Donald Trump’s threats of attacks on power plants around the Strait of Hormuz exacerbated market concerns over climbing oil prices and fueled risk-off sentiment.

The Nikkei 225 fell as much as 5% to 50688.76 on Monday while the broader Topix slumped as much as 4.5% to 3447.34, heading for a technical correction. Tokyo’s market is catching up with global benchmarks after a public holiday on Friday.

Electronics and banks contributed most to declines on the Topix, while chip-related firms like Renesas Electronics and Lasertec were among the Nikkei’s worst performers. Skyrocketing oil prices — Brent was trading around $111 per barrel as of 10 a.m. in Tokyo — are sapping risk appetite across sectors.

"Whatever happens now, what has become crystal clear is the outlook for near term inflation," said Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors, in a note.

Trump's 48-hour ultimatum for Iran to reopen the Strait of Hormuz has "notched up the temperature," making escalation of the conflict look more likely, he added.

Anvarzadeh expects "overvalued" AI-related stocks, like cablemaker Fujikura, to be among the worst hit by inflation fears. Fujikura lost as much as 6.7% Monday.

Climbing bond yields are further amplifying caution in the equity market, said Kazuyuki Muramatsu, head of investment management at Nagomi Capital. Japan's 10-year bond yield rose six basis points to 2.32% on Monday, near its highest level since 1999.

"The market sees this as a 'bad' rise in yields," so it's a downside even for bank shares, which would usually get a tailwind from higher yields, Muramatsu said.
 
 

Japan will take "all possible steps" to address speculative moves in the foreign exchange market, the country's top currency diplomat said Monday, with the yen remaining under pressure as the conflict in the Middle East continues to escalate.

"Some market participants would say that speculative moves in crude oil futures are affecting the currency market," Atsushi Mimura, vice finance minister for international affairs, told reporters.

The U.S. dollar held steady in the lower 159 yen range in Tokyo as investors continued to seek safety amid fears that the Middle East crisis could be prolonged.

When the dollar rose to a similar level in January, it dropped sharply on signs that Japanese and U.S. authorities could step in to curb the yen's slide.

Mimura said the Japanese government will take into account "the impact on people's livelihoods and the economy." A weaker yen raises the cost of imported energy and goods.
 
 

 

Against the backdrop of soaring prices, a number of major companies across a wide range of industries, including automobiles and electronics, fully agreed on Wednesday to high wage increases as demanded by labor unions during this year’s shunto spring wage negotiations.

Many companies apparently fully accepted pay hike demands as they prioritized employees’ morale amid a severe business environment.

However, as negotiations with small and midsize enterprises are set to begin in earnest, rising crude oil prices due to the deteriorating situation in the Middle East could negatively impact their wage increases.

The Japanese Trade Union Confederation (Rengo) has set an overall target of at least a 5% increase in this year’s negotiations. For small and midsize enterprises, the target increase is at least 6%.

According to the Japan Council of Metalworkers’ Unions, all 49 member unions representing industries including the automobile and electronics sectors received decisions by 12:30 p.m. on Wednesday. Improvements to a pay-scale increase per month for base pay had been secured. The average wage increase stands at around 5.1%.

At a press conference on the same day, Akihiro Kaneko, president of the Confederation of Japan Automobile Workers’ Unions, expressed satisfaction. “Although the environment surrounding the automobile industry is severe, I highly appreciate the fact that we were able to secure the requested level,” he said.

All seven major automakers responded with wage increases that met or exceeded the requested amounts, an improvement from 2025, when only three companies did so. The move aims to boost employees’ morale even as business performance remains sluggish due to factors such as U.S. tariffs.

Nissan Motor Co., which gave its response before Wednesday, is projected to post a net loss for the fiscal year ending March 2026, while Mazda Motor Corp. and Mitsubishi Motors Corp. also reported net losses for the April-December 2025 period.

A Mitsubishi Motors executive stated, “Precisely because the world is in turmoil, we want employees to focus on their work rather than prolonging wage negotiations.”

Honda Motor Co. also offered to fully meet the proposed amount of ¥18,500, including a ¥12,000 pay-scale raise and a regular pay increase.

The company is expected to post a net loss of up to ¥690 billion in its consolidated financial results for the fiscal year ending March 2026, mainly due to losses related to electric vehicles.



Steel sector falls short of demands

Major electronics manufacturers have reported solid performance driven mainly by increased demand for power transmission and distribution equipment as well as artificial intelligence services.

Five of the seven firms, including Hitachi, Ltd. and Mitsubishi Electric Corp., offered full-scale raises, with all companies exceeding offers from the previous year.

Mitsubishi Electric’s rate of increase, which combines a pay-scale raise and a merit-based pay increase, was 7% on average – the highest level since the current negotiation system was adopted in 2008.

Meanwhile, raises offered by major steelmakers fell short of demands for pay-scale increases due to deteriorating market conditions caused by overproduction in China.

JFE Steel Corp. responded to a demand of ¥15,000 with an offer of ¥7,000 – less than half the amount. The company had met the full ¥15,000 demand in 2025.

A public relations official from the company said: “We had anticipated an improvement in the business environment, but the severe conditions have persisted. The outlook remains uncertain.”

In response to the ¥15,000 increase demand, Nippon Steel Corp. offered ¥10,000 and Kobe Steel, Ltd. offered ¥13,000 — both lower than the previous year’s figures.
 
 

The Bank of Japan on Thursday kept its benchmark interest rate unchanged, as developments in the Middle East complicate the future path of its monetary policy.

With the Iran war threatening to drive up inflation and dampen economic growth, the central bank is bracing for the upside and downside risks to the price and economic outlooks.

BOJ Governor Kazuo Ueda said at a press conference after its two-day policy meeting through Thursday that he "needs more time" to understand the impact the war will have on the economy.

"We have decided to keep the policy unchanged as risks associated with rising crude oil prices have newly emerged," Ueda said. "We will make an appropriate policy decision next month after examining the new risk scenario and outlook when more data become available."

The bank has been seeking to normalize its monetary policy since it ended unconventional monetary easing two years ago to stably achieve its 2 percent inflation target.

If the central bank continues raising its policy interest rate to tame possible higher inflation at a time when an energy price surge threatens to dent demand, the move could add pressure on growth, while leaving the policy intact could fuel inflation coupled with the yen's recent weakening. A weaker yen increases import costs.

Still, Ueda said more policymakers are aware of the upside risk to inflation.
The U.S. Federal Reserve, which also decided to keep its rate steady at its meeting through Wednesday, also warned of higher inflation with Fed chief Jerome Powell emphasizing uncertainty over the U.S. economic outlook from the Iran war.

At the policy meeting, the BOJ left the key rate at around 0.75 percent for the second consecutive meeting.

The Japanese central bank lifted its policy rate to a 30-year high of around 0.75 percent from 0.5 percent at its December meeting.

The latest decision to stand pat on the rate was delivered in an eight-to-one vote, with hawkish policymaker Hajime Takata proposing a rate hike to around 1.0 percent.

The nationwide core consumer price index, excluding volatile fresh food, in Japan is expected to come under "upward pressure," affected by the rise in crude oil prices, the bank said in a post-meeting statement.

The yen's recent depreciation against the U.S. dollar is also threatening to raise import costs for resource-poor Japan.

The dollar came within striking distance of the 160 yen mark overnight, a level unseen since 2024 prior to the BOJ's meeting, prompting Finance Minister Satsuki Katayama to say Japanese authorities are on "full guard" and ready to consider all possible options.

In the wake of the U.S.-Israeli launch of attacks on Iran, the dollar has drawn buying, as a safe-haven asset in times of crisis. Tokyo shares have also faced steep declines with uncertainties heightening over the effects of the Middle East crisis on inflation and the broader economy.

The war with Iran has effectively closed the Strait of Hormuz, through which many oil tankers pass, including those bound for Japan. There has also been damage to liquefied natural gas export facilities.

Soaring crude oil prices will likely push up the prices of many products, from gasoline to plastics. Electricity and gas bills could also rise if liquefied natural gas prices climb alongside oil prices.
 
 

Japan's Suzuki Motor Corp. has unveiled to the media its second biogas plant in India, which processes cow dung to produce methane for compressed natural gas vehicles.

The plant in Bhukhala, Gujarat, shown on Thursday, ferments cow dung collected from farmers and extracts methane, which is sold at an attached filling station.

Biogas derived from cow dung is considered a carbon-neutral fuel and contributes to raising farmers' incomes.

The plant was built as part of a demonstration project launched by the vehicle maker mainly in cooperation with a local dairy industry association.

The facility, which opened in January, processes 100 tons of cow dung per day and produces about 1.5 tons of biogas daily.
 
 
 
 

Japan's House of Representatives on Thursday approved two academics regarded as reflationists as new members of the Bank of Japan's Policy Board.

At the day's plenary meeting, the lower chamber of the Diet, the country's parliament, confirmed the government's nominations of 22 people at 11 institutions, including Chuo University professor Toichiro Asada and Aoyama Gakuin University professor Ayano Sato for the nine-member policymaking board of the central bank.

The House of Councillors, the upper chamber, is also expected to confirm the batch of nominations at a meeting Monday, completing the parliament's approval procedures for the 22 individuals.

Asada and Sato, who are set to succeed two retiring Policy Board members, are considered to be in favor of reflationist policies, namely monetary easing and active public spending.

Their nominations gave rise to a view that Prime Minister Sanae Takaichi, who promotes her "responsible and proactive" fiscal policy, moved to warn against the BOJ's stance of continuing to raise interest rates.
 
 

Japan's seasonally adjusted core machinery orders in January fell 5.5% from the previous month, after a spike driven by large-scale orders in December, Cabinet Office data showed Thursday.

The private-sector orders excluding those for ships and equipment used at power companies, closely watched as a leading indicator of corporate capital spending, came to ¥982.4 billion.

The government agency kept its basic assessment intact, saying that machinery orders are showing signs of picking up.

Many private think tanks expect corporate capital spending to remain firm, but concerns linger over the conflict in Iran.

"If (the military conflict) drags on, there is a risk that appetite for capital spending will shrink at once," said Takeshi Minami of Norinchukin Research Institute.

Machinery orders from manufacturers dropped 12.5% to ¥435.8 billion. In the previous month, the sector was boosted by large-scale orders from the nonferrous metal industry and the oil and coal sector.

Core orders from nonmanufacturers rose 6.8% to ¥563.2 billion, driven by orders for computers and road vehicles including trailers.

Total machinery orders, including those from the public sector and abroad, declined 2.0% to ¥3,942.1 billion.
 
 

The average retail price of regular gasoline in Japan as of Monday surged 29 yen from a week earlier to hit a record high of 190.8 yen per liter, the industry ministry said Wednesday.

The jump was driven by a spike in wholesale prices after crude oil prices surged following the effective closure of the Strait of Hormuz, a key oil shipping route, in the wake of escalating tensions over Iran.

The Japanese government will resume subsidies to oil wholesalers Thursday, aiming to lower the average pump price to around 170 yen per liter.

With major wholesalers expected to raise their prices further, the initial amount of subsidies will be as much as 30.2 yen per liter. It is expected to take a week or two for the effect of the subsidies to be reflected in retail prices.

Retail prices rose for the fifth consecutive week, with all 47 prefectures of the country logging increases. The highest price was 198.5 yen in Yamagata, northeastern Japan, while Okayama in western Japan logged the largest weekly rise, at 32.1 yen.
 
 

Japanese exports rose 4.2 per cent year-on-year in February, up for a sixth straight month, data from the Ministry of Finance showed on Wednesday.

The result compared with a 1.6 per cent increase expected by economists in a Reuters poll.

Imports grew 10.2 per cent in February from a year earlier, versus an 11.5 per cent increase expected by economists.

The trade balance stood at a surplus of 57.3 billion yen (S$460.6 million), compared with the forecast of a deficit of 483.2 billion yen.
 

Key Points

-    Nissan will export the Murano SUV built in Smyrna, Tennessee, to Japan beginning early next year. It marks the first American-made Nissan sold in Japan since the 1990s.

-    Nissan is the latest of Japanese automaker to announce such plans after regulators loosened regulations to more easily allow automakers to import vehicles from the U.S. to Japan.

-    Under the new rules, U.S.-made vehicles don’t have to meet Japanese vehicle certification as long as they comply with American standards.
 
Nissan Motor plans to join fellow Japanese automakers Toyota Motor and Honda Motor

in exporting U.S.-produced vehicles to Japan following changes to the country’s vehicle import rules reached through a trade deal last year with the Trump administration.

The company on Tuesday said it will import the midsize Nissan Murano, built in Smyrna, Tennessee, to Japan beginning early next year. It marks the first American-made Nissan sold in Japan since the 1990s, according to a Nissan spokeswoman.

“With the introduction of this model, Nissan aims to further strengthen its product lineup in Japan and meet the diverse needs of Japanese customers,” Nissan CEO Ivan Espinosa said in a statement.

Nissan is the latest Japanese automaker to announce such plans after changes to regulations meant automakers could more easily import vehicles from the U.S. to Japan. Those rules were put in place as part of a trade deal that also included easing U.S. tariffs enacted by President Donald Trump.
 
Under the new Japanese regulations that were confirmed last month, U.S.-made vehicles don’t have to meet the country’s vehicle certification as long as they comply with American standards.

Nissan confirmed plans to import the Murano from the U.S. with the steering wheel on the left-hand side of the vehicle, which is typical for Americans but not in the Japanese market.

Automakers typically have to tailor vehicles to meet safety and other regulations for different countries globally. They can range from things such as lighting and side mirrors to more complex parts such as the location of the steering wheel.
 
 

Fans of Wasabeef potato chips may have to brace themselves for emptier shelves.

Japanese snack maker Yamayoshi Seika announced that it has suspended production of several products due to difficulties securing fuel, forcing it to halt factory operations.

The snack maker said it has stopped producing six items — including its flagship wasabi and beef-flavored potato chips — as heavy oil used in manufacturing became difficult to procure, citing disruptions linked to the situation in the Strait of Hormuz.

The company has not set a timeline for resuming production.

Yamayoshi also temporarily closed its direct sales store and online shop from Monday and has stopped accepting new orders. The company said orders already placed will be fulfilled.

Retail availability will be limited to existing inventories at supermarkets and other outlets.

“We sincerely apologize for the inconvenience and trouble this will cause our customers and business partners,” the company said in a notice, adding it is working to secure fuel and resume operations as soon as possible.

The Strait of Hormuz, a key maritime chokepoint for global oil shipments, has been effectively blocked by Iran amid a war with the U.S. and Israel. The chokepoint handles a significant share of global crude exports, and any disruption can quickly tighten fuel supply.

For countries such as Japan that are heavily dependent on imports, that can translate to unexpected knock-on effects — including, as evidenced in this case, on the snack aisle.

Yamayoshi’s production halt is one of the first tangible impacts of the oil shock on Japanese consumers.

Its products’ sudden unavailability sparked a wave of online dismay among fans of the potato chips on social media, with many netizens expressing concern about other daily goods that might disappear off the shelves as well.
 
 

Many Japanese firms remain underinsured despite rising exposure to cyber-incidents.

HDI Global SE’s Japan unit plans to expand its cyber-insurance capabilities whilst tightening underwriting discipline as companies face rising digital threats and insurers seek to protect profitability, its country head said.

Managing Director Hiro Yamasaki said cyber-risk is becoming one of the most rapidly evolving threats for businesses as attacks grow more frequent and sophisticated, increasing the risk of operational disruption.

“Cyber-risk is definitely one of the fastest-evolving risks for businesses today,” he told Insurance Asia. “The frequency and sophistication of attacks continue to increase and the potential business interruption impact can be severe.”

Yamasaki said Japan’s cyber-insurance market still has room to expand as many companies remain underinsured despite rising exposure to cyber-incidents.

A study by Aon Plc found that more than a quarter of organisations in Japan reported cyber-related losses, underscoring the scale of the risk.

However, far fewer companies have formal business continuity plans, pointing to gaps in preparedness that could affect insurance coverage and claim outcomes.

“Cyber-risk must be approached holistically, not only through insurance capacity but through continuous risk management as well,” Yamasaki said via Zoom.

Yamasaki, who took the helm of the Japanese unit of the Germany-based insurer earlier this year, said the company would continue focusing on its core commercial insurance portfolio whilst gradually strengthening cyber-offerings for corporate clients.

The insurer primarily serves large commercial and industrial companies in Japan, particularly in sectors such as manufacturing and multinational operations where property and liability insurance play a key role in managing operational risks.

Property and liability lines remain the backbone of the group’s business globally.

These segments account for the majority of gross written premiums, with fire and other property damage forming a significant share and general liability another major component, according to the company’s financial disclosures.

Japan’s property and casualty insurance market is also expanding as businesses seek broader protection against operational and financial risks.
Industry forecasts point to steady growth over the coming years as corporate risk management becomes more complex.

Within this environment, HDI Global aims to stand out through technical underwriting expertise and disciplined risk selection, Yamasaki said.

The insurer is also looking to deepen partnerships with brokers and agents.

More structured strategy discussions and clearer communication are intended to strengthen collaboration and improve the development of insurance solutions for clients.

HDI Global’s international network is another advantage for Japanese companies operating overseas. The insurer operates across more than 170 countries, enabling multinational clients to arrange coordinated coverage across multiple territories.

Technology is expected to play a bigger role in underwriting and risk assessment. HDI Global is investing in data analytics and artificial intelligence tools to support faster and more consistent decision-making whilst keeping specialist expertise central to the process.

“Balanced growth and sustainable profitability come from technical excellence, disciplined underwriting, and strong partnerships,” Yamasaki said.
 
 

ANA Holdings Inc. is considering launching a new business using fixed-wing drones to survey damage in remote areas following a disaster.

The parent company of All Nippon Airways aims to use the drones, which can fly at high speeds and cover long distances, to survey disaster-struck mountainous areas and peninsulas.

It plans to sign a memorandum of understanding with a Swiss drone manufacturer for business use and to promote its new service to local governments and other businesses.

The drone model eyed for the new business has a wingspan of 1.2 meters and weighs 5.2 kilograms, small enough for a single person to carry.

Equipped with a camera, the model will be used to inspect aging infrastructure facilities such as bridges and utility towers to detect changes in their condition that might indicate possible issues.

In case of a disaster, the model can be used to survey landslides, cracks or other changes on the ground, as well as damage sustained to infrastructure.

During a test in October 2025 near Mt. Fugen in Nagasaki Prefecture, a fixed-wing drone was able to inspect an area of about 150 hectares for 30 minutes and detect fine cracks on erosion control facilities and changes in their condition, according to ANA Holdings.

When a powerful earthquake hit the Noto Peninsula in Ishikawa Prefecture in January 2024, ANA Holdings conducted a survey using a large drone. However, the company encountered challenges, such as the long time required to transport such a large product to the affected areas.

ANA Holdings is therefore turning to the small model with fixed wings, as it can be operated more flexibly. The model is more maneuverable than a helicopter and can survey wider areas than a small drone without fixed wings.

ANA Holdings also plans to launch a logistics business using a large drone with a wingspan of 7 meters as early as 2027. When a disaster strikes, the drone will be tasked with delivering food and other relief supplies to areas where access has been cut off.

Other companies are also trying to use fixed-wing drones for their businesses.

In January, Itochu Corp. announced that it will work with Pasco Corp. on the practical use of fixed-wing drones in aerial surveying. The major trading firm is considering using the drones to transport blood products and medical equipment in normal times, as well as deploying them when a disaster happens.

East Japan Railway Co. has also conducted tests using a fixed-wing drone in heavy snowfall areas to survey conditions on slopes along its tracks and analyze if an avalanche could happen.

As the market for fixed-wing drones is expanding, the government is currently working to establish a new national certification specifically for this type by the end of the year.

Currently, operators must hold a highly specialized certification for unmanned aircraft that require the use of runways. The government aims to promote fixed-wing drones by establishing a certification that is easier to acquire.
 
 

Last year saw 143 ransomware attacks on small and midsize companies in Japan, accounting for 60% of all attacks in the country for the second year in a row, according to the National Police Agency.

Officials at one company that was targeted said the attack could have caused the firm’s bankruptcy.


Data hacked

Early on the morning of Jan. 6 last year, a security official at a manufacturer of dairy products in Tokyo received an automated call that said irregularities had been detected in the company’s internal system.

Accessing the server via a computer at home, he found that some file extensions had been overwritten.

“Is this ransomware?” he thought. After instructing all employees via the in-company chat not to start their computers, he rushed to his firm’s data center.

There, he discovered that almost all their data had been encrypted. When he opened a text file on the server that had been left unencrypted, he saw that it was a note from RansomHub, a notorious ransomware group, that claimed responsibility and said the data had been “taken” to the group’s server.



Brought to a standstill


Data about the firm’s roughly 7,000 corporate customers and personal information about its employees was encrypted and a server at a separate location was also affected.

The firm was forced to suspend production and distribution. Even the backup files, which were supposed to have been impossible to overwrite, had been encrypted.

The ransomware group demanded a payment of $1 million, or about ¥150 million, to restore the data. Management decided that same day not to comply with the demand, believing the data might not be restored even if they paid. The company’s headquarters ground to a halt.

But there was one saving grace. The firm’s core system, which had a specially designed operating system, had not been attacked. The system was introduced about 40 years ago and was set to be retired in about six months.

The core system was accessed safely from a computer, suggesting it might be possible to take some orders and check stock again.

It was around 3 p.m. that the firm managed to partially resume operations. The company explained the situation to customers over the phone and received orders via phone and fax. The firm continued production with rough projections, keeping its plants online.


Early warning signs

The company was hacked through a virtual private network, or VPN, which was used to access the in-company system from outside. The company identified traces of an attack three days before, but it was unable to decrypt files in the attacked server.

It took the firm four months to completely restore operations, costing it tens of millions of yen, including for safety measures after the incident.

So far, there is no sign of secondary damage, such as the disclosure of customer information.

“The attack was beyond our expectations,” said one corporate official. “The incident made us keenly aware that we need a system that will allow us to keep operating even if it gets infected or we are attacked, which could mean a backup system that is not connected to the internet.”

“We never expected our firm would be targeted,” said a senior official. “The core system just happened to survive, but otherwise we would have gone bankrupt.”
 
 

The umbrella body for labor unions at Japanese electronics makers plans to allow member unions to accept pay scale hike offers from management in the ongoing shuntō annual wage negotiations if the proposed levels are ¥12,000 or higher per month, sources said Saturday.

The minimum acceptable level will be higher than last year's ¥10,000 or more. The hike is intended to help sustainably realize robust pay increases outpacing inflation.

The Japanese Electrical Electronic & Information Union is expected to make a decision on the matter Monday, informed sources said.

Unions at major electronics makers have demanded a monthly pay scale hike of ¥18,000.

Labor-management negotiations in the 2026 shuntō are in the final stretch toward Wednesday, when many major companies in Japan are slated to present their responses.

Starting with the 2020 shuntō, the umbrella body for electronics unions allows agreed pay hikes to vary from company to company if the levels are at or above the minimum acceptable standards set by the organization.

Agreed pay increases are highly likely to differ again this year, due to gaps among companies with regard to earnings performances and business environments.

NEC, which is enjoying rosy earnings, has already informed its labor union of a plan to fully meet the union request for a monthly pay scale hike of ¥18,000.

In the 2025 shuntō, unions at major electronics makers sought a pay scale increase of ¥17,000 per month.

In response, NEC, Hitachi Ltd. and Fujitsu Ltd. fully accepted their unions' demands. Meanwhile, Mitsubishi Electric, Toshiba and Sharp concluded their negotiations with the labor side at ¥15,000, ¥14,000 and ¥12,000, respectively.
 
 

The Central Japan Railway Co. (JR Tokai) held a groundbreaking ceremony on Wednesday for the tentatively named Yamanashi Prefecture Station, marking the start of construction for a series of planned stations between Tokyo’s Shinagawa and Nagoya Station that are set to support the future Linear Chuo Shinkansen maglev train service.

The station, to be used exclusively for the maglev line, is about 7 kilometers south of JR Kofu Station, straddling the cities of Kofu and Chuo in Yamanashi Prefecture.

 

Features of the project will include the station building and a 1.2-kilometer elevated bridge where the platforms will be located. There will be two platforms and four tracks.

The station building will be four stories tall, with ticket gates on the second floor and platforms on the fourth floor.

JR Tokai signed a construction contract with the contractor in September 2025 and has been moving forward with preparatory work since February this year. The construction period is set to last until December 2031.

Attending the groundbreaking ceremony were JR Tokai President Shunsuke Niwa, Yamanashi Gov. Kotaro Nagasaki and various local municipal leaders.

“As we proceed with construction, we want to make safety our highest priority and place great importance on cooperation with the local community,” said Niwa.
 
 

PayPay Corp, the Japanese provider of a popular digital payment app, made a major stock market debut on the U.S. Nasdaq exchange on Thursday, a move aimed at supporting its global expansion.

PayPay was valued at around $12.1 billion based on its closing price of $18.16, exceeding the initial offering price of $16 per share. The offering price was set below the initially indicated range of $17 to $20.

Although U.S. stocks fell broadly on concerns over the war raging in the Middle East, the new share opened at $19, about 19 percent above the offering price.

At a commemorative ceremony at the Nasdaq, PayPay President Ichiro Nakayama rang the bell, saying the company hopes to show that a Japanese firm "can directly access the U.S. capital markets and grow with strength."

For the listing, PayPay issued about 31 million new shares to bolster its overseas business, while an investment fund operated by SoftBank Group Corp will sell around 24 million shares. Nakayama said, "We will always remain challengers."

 

After the listing, roughly 90 percent of PayPay's shares will be owned by companies including SoftBank Corp and LY Corp, operator of the Line messaging app.

Last month, PayPay announced plans to enter the U.S. market by setting up a new firm with global credit card brand Visa Inc, aiming to build its merchant network through QR code and contactless payments in California and elsewhere.

The Japanese company launched the app in Japan in 2018 and had about 73 million users as of March.
 
 

At least 1,515 Japanese firms operate in the Middle East, where Japanese nationals have begun to evacuate following U.S.-Israeli attacks on Iran, a survey by research firm Teikoku Databank showed Friday.

Of them, 469 companies have resident offices and plants. Teikoku Databank noted that these firms may be forced to halt or reconsider their operations there.

The survey covered Japanese businesses in 13 countries in the region. It confirmed that 126 companies are operating in Iran, including importers of food and furniture products to Japan.

The number of operating Japanese firms was highest in the United Arab Emirates, at 709, followed by 473 in Israel.

By industry, 883 companies were electronics, luxury used car and other wholesalers, 291 were manufacturers and 127 were service firms.
 
 

The average retail gasoline price in Japan rose to 161.80 yen per liter as of Monday, reflecting higher crude oil prices amid the Iran war, industry ministry data showed, with the price possibly jumping to above 180 yen next week.

The average price advanced 3.30 yen from March 2, rising for the fourth straight week, after the U.S.-Israeli attacks on Iran, launched on Feb. 28, drove up crude oil prices, the Ministry of Economy, Trade and Industry said Wednesday.

The Oil Information Center, which collected the data, estimates the price could hike a further 20 yen next week as tensions in the Middle East continue, stoking fears over crude oil supplies.

The increase in the price of gasoline comes as a headache for Prime Minister Sanae Takaichi's government as it strives to tackle inflation.

Due to the end of a provisional gasoline tax in December, the price of gasoline had been moving at its lowest level in around four and a half years in recent weeks, providing relief for many businesses and car owners.

In mid-January, the price hit as low as 154.70 yen, contributing to a slowing down the country's nationwide inflation to 2.0 percent in the month, the lowest in two years.

According to the ministry, advances in the price of gasoline were recorded in all 47 prefectures as of Monday.

Diesel prices were also 3.2 yen higher than the previous week at 149.8 yen, while the price of kerosene climbed 47 yen to 2,267 yen per 18 liters, the size of a standard home storage tank.
 
 

East Japan Railway has said it will launch a trial in April of a system that uses artificial intelligence to monitor pantographs on trains running on its busy Yamanote Line in Tokyo to detect defects at an early stage.

The railway operator, known as JR East, also plans to use drones toinspect overhead wires and other infrastructure, aiming to reduce the time required to resume operations by 30% when transport service disruptions occur due to equipment problems.

Cameras to monitor pantographs, which are located on the roof of a train car and connect the carriage to overheard electrical wires, will be installed near Shimbashi, Ebisu, Mejiro and Uguisudani stations in the capital, the company said Tuesday.

The AI system will analyze the images in real time, and if damage is detected, it will notify the control room or other relevant sections. Drones will be dispatched later to inspect overhead wires and other equipment, facilitating faster restoration work.

By replacing the work traditionally done by people with AI and drones, the system is expected to shorten the time needed to identify damaged vehicles and inspect facilities.

It is the first time for JR East to use AI to detect such damage, and the company is considering introducing it to the Tokyo-Shinjuku section on its Chuo Line and to shinkansen services in the future.

In May last year, many pantographs on the Yamanote Line were damaged due to broken overhead wires, affecting about 250,000 people.

This year, JR East faced a series of large-scale transportation disruptions due to power outages on its Yamanote, Joban and Utsunomiya lines, making it an urgent task for the company to prevent a recurrence.
 
 

Retail prices of regular gasoline in Japan surpassed 160 yen per liter on average as of Monday for the first time in three months, reflecting higher crude oil prices following U.S.-Israeli attacks on Iran, the industry ministry said Wednesday.

The average price at the pump climbed 3.3 yen from a week earlier to 161.8 yen per liter, marking the fourth consecutive weekly increase.

All 47 prefectures of the country saw price rises. Yamagata logged the highest price, at 170.1 yen, and Aichi the lowest, at 155.6 yen.

Gasoline prices are expected to rise further next week as refineries have been raising wholesale prices in response to surging oil prices. The gasoline price "could top 180 yen per liter," an industry official said.

The rise in gasoline prices is likely to offset the effect of the removal of the gasoline tax surcharge of 25.1 yen per liter at the end of last year.
 
 

Tokyo stocks plunged Monday, with the Nikkei index losing over 2,800 points and marking the third-largest point drop in history, as crude oil futures surged amid growing prospects of a prolonged Middle East conflict.

The 225-issue Nikkei Stock Average ended down 2,892.12 points, or 5.20 percent, from Friday at 52,728.72. The broader Topix index finished 141.09 points, or 3.80 percent, lower at 3,575.84.

On the top-tier Prime Market, the main decliners were nonferrous metal, glass and ceramics product and machinery issues.

The U.S. dollar mostly stayed in the upper 158 yen range in Tokyo amid concerns about the impact of surging crude prices.

At 5 p.m., the dollar fetched 158.45-47 yen compared with 157.79-89 yen in New York and 157.52-55 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.1563-1565 and 183.22-26 yen against $1.1613-1623 and 183.22-32 yen in New York and $1.1614-1615 and 182.96-183.00 yen in Tokyo late Friday afternoon.

The yield on the benchmark 10-year Japanese government bond ended up 0.025 percentage point from Friday's close at 2.185 percent as worries about inflation grew with the rise in oil prices.

Expectations for an early resolution of the conflict receded after reports that President Donald Trump has shown interest in deploying U.S. ground troops inside Iran, dealers said.

The appointment of Mojtaba Khamenei as Iran's supreme leader, announced Monday following the killing of his father, Ayatollah Ali Khamenei, also raised fears that the military conflict and the surge in crude oil prices could be prolonged, they said.

"There is a view that even if the top leader changes, Iran's religious regime is unlikely to change drastically," said Wataru Akiyama, strategist in the Investment Content Department of Nomura Securities Co.

The benchmark West Texas Intermediate crude oil futures contract temporarily surpassed $119 per barrel in New York on Sunday, the highest level since June 2022, as the Middle East conflict continues to escalate. It ended below the $100 mark on Friday.

"The market already seems to be factoring in four or five more weeks (of the conflict), or even longer, as President Trump has said," according to Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

The Nikkei stock index briefly fell by more than 4,200 points, with all sectors facing selling pressure. Still, the declines were trimmed in the afternoon following a report that finance ministers of the Group of Seven will discuss the possibility of a joint release of stockpiled oil.

The decline in heavyweight technology shares, which were surging until February, weighed on the market.
 
 

Japan's benchmark stock index rebounded sharply on Tuesday as concerns eased that the Middle East conflict could disrupt global oil supplies.

The Nikkei 225 gained 2.88 percent to close at 54,248. It rose 3.7 percent at one stage after G7 member nations indicated they are ready to release oil reserves if needed.

US President Donald Trump also said the Iran conflict will end soon.

The Nikkei index plunged 5.2 percent on Monday amid oil supply worries.

That was a fall of nearly 2,900 points, or its third-biggest drop on record.
 

 

Asian shares tumbled Wednesday, with South Korea's benchmark plunging more than 11%, while oil prices climbed even higher as the war with Iran widened.

Worries over Iran have hammered most world markets, spooking investors who fear more spikes for oil prices may grind down the global economy and sap corporate profits.

South Korea's Kospi led the regional losses as energy security concerns vanquished optimism over the boost computer chipmakers like Samsung Electronics and SK Hynix have been getting from expanding use of artificial intelligence.

The Kospi sank 11.5% to 5,127.28. Samsung's shares dropped 9.1%, while SK Hynix gave back 6.5%.

The Korea Exchange temporarily halted trading for the Kospi index, while a circuit breaker was also triggered on the tech-oriented Kosdaq after it fell by more than 8%. It later dropped 12%.

South Korea’s stock market has been one of the world’s best performers this year, but its economy depends heavily on trade and fuel imports, that are threatened with disruptions to traffic through the Strait of Hormuz, the narrow gateway to the Persian Gulf through which roughly a fifth of globally traded oil passes.

The rise in oil prices appeared to moderate after U.S. President Donald Trump announced Tuesday that he had ordered the U.S. Development Finance Corp. to provide political risk insurance and guarantees for financial security of all maritime trade.

“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible,” Trump said in a message posted by the White House on X.

The price of U.S. benchmark crude oil climbed 1.3% to $75.53 per barrel. Brent crude, the international standard, gained 1.7% to $82.74 per barrel. Its price has jumped more than 13% since the war began.

“Trump’s assurances of the U.S. underwrite shipping insurance against Middle East conflict risks and even U.S. naval escorts only mitigate, but do not eliminate, enduring upside risks to oil prices,” Mizuho Bank said in a commentary.

The increased insurance costs filtering through to shipping would ultimately cost an extra $5 to $15 a barrel.

It said that “evolving Middle East risks, entailing escalating attacks, means that the ‘war premium’ remains firmly intact.”

In Tokyo, the Nikkei 225 shed 3.61% to 54,245.54. Like South Korea and Taiwan, Japan depends heavily on imports of oil and natural gas from the Persian Gulf.

Elsewhere in Asia, the Hang Seng in Hong Kong fell 2.9% to 25,023.18 and the Shanghai Composite index shed 1.2% to 4,074.22.

In Australia, the S&P/ASX 200 declined 1.9% to 8,901.20.

Taiwan's Taiex lost 4.4% and shares in Bangkok sank 8%.

On Tuesday, the S&P 500 finished with a loss of 0.9%, at 6,816.63, after dropping as much as 2.5% on concerns over the war’s damage to the economy. The Dow Jones Industrial Average pared its loss to 0.8%, closing at 48,501.27.

The Nasdaq composite fell 1% to 22,516.69.

In the bond market, Treasury yields leaped in the morning with worries about inflation. The yield on the 10-year Treasury briefly rose above 4.10% before pulling back just below 4.06%. It was at 4.05% late Monday and just 3.97% on Friday.

Higher yields can make it more expensive for U.S. households and businesses to borrow money, affecting everything from mortgages to bond issuances. They also put downward pressure on prices for stocks and all kinds of other investments.

Some analysts say stocks could rebound if the war doesn’t last that long. But they acknowledge it could take a while for that to become clear, and Tuesday’s swings for markets showed how uncertain things are.

The more evident impact has been on the average price of a gallon of gasoline. Drivers in Europe and some Asian cities waited in line to fill their tanks with fuel.

While the U.S. does not face a shortage as a net oil exporter, prices are influenced by global market trends.

In the U.S., a gallon of regular was selling for $3.11 on average, up 11 cents, according to motor club AAA, surprising some drivers at the pump. Gasoline prices were already rising before the U.S. launched strikes on Iran as refiners were switching over to summer blends of fuel.
The war could have broader implications.

Higher inflation partly due to the war could tie the Federal Reserve’s hands and keep it from cutting interest rates. The Fed lowered rates several times last year and indicated more cuts were to come in 2026. That would help boost the economy and job market, but lower rates can also worsen inflation.

In other dealings, the dollar fell to 157.61 Japanese yen from 157.74 yen. The euro slipped to $1.1592 from $1.1612.

The price of gold rose 0.9%, while silver gained 1.5%.
 
 

Japan's unemployment rate in January rose to 2.7 percent from 2.6 percent in the previous month, climbing for the first time in five months, as more workers left their jobs to seek improved conditions, government data showed Tuesday.

The number of people with jobs edged down 0.4 percent to a seasonally adjusted 68.17 million, dropping for the first time in five months, while those without jobs rose 3.2 percent to 1.91 million, marking a second straight month of increase, the Ministry of Internal Affairs and Communications said.

Of those not in work, 450,000 were dismissed, unchanged from December, while 820,000 people left their jobs voluntarily, typically to seek better conditions, up 7.9 percent.

Those newly seeking jobs decreased 3.6 percent to 540,000, according to the ministry.

"More workers may be quitting their jobs after receiving winter bonuses and looking for positions with higher salaries," a ministry official said.

The job availability ratio edged down 0.02 point from December to 1.18, meaning there were 118 jobs available for every 100 job seekers, marking the first decline in three months, according to separate data.

By industry, new job openings plunged 13.8 percent in accommodation and restaurant services, while there were 11.6 percent fewer new job offers in the wholesale and retail sector in January compared with a year earlier, the Ministry of Health, Labor and Welfare said.

In contrast, new job openings increased 4.3 percent in the education sector, 0.8 percent in manufacturing and 0.3 percent in scientific research, professional and technical services.

A labor ministry official said that "rising prices and labor costs are accelerating moves to cut workers and improve efficiency, including by utilizing artificial intelligence."
 
 

The main store of Meitetsu Department Store, a landmark at Nagoya Station in central Japan for over 71 years, closed permanently on Saturday.

The closure is part of a redevelopment plan for the Nagoya Station area, led by the department store operator's parent company, Nagoya Railroad.

But it is uncertain when the store building will be demolished and a new building erected, as the redevelopment plan was put on hold last December after a prospective contractor decided not to bid for the project, citing difficulties securing workers. The delay is expected to pose a drag to efforts to revitalize the area surrounding the station.

The Meitetsu Department Store main store opened in December 1954 and served as the core of the commercial area near Nagoya Station. However, the store struggled with declining business, with sales falling from ¥79.3 billion ($511 million) in 2000 to ¥37.6 billion in 2024.

"Thank you very much for your long-time patronage," president Hitoshi Ishikawa said at the closing ceremony.

Following the closure, the operator will consider opening some shops on the lower floors of the building. Nagoya Railroad has said it plans to outline the direction of the redevelopment plan in fiscal 2026.
 
 

Mizuho Financial Group is planning to replace about 5,000 administrative jobs in Japan with artificial intelligence over the next 10 years, as the country’s third-largest lender tries to boost productivity.

“We are planning to enhance our earnings capabilities by shifting human resources to our focus areas by fully utilizing AI,” Mizuho said in a statement. “It is not a headcount reduction.”

Japanese companies have been expanding their use of AI to improve efficiency, and investment in the technology is a key part of Prime Minister Sanae Takaichi’s policy program.

In the banking sector, institutions are seeking to pursue AI initiatives in ways that minimize significant workforce reductions as they face labor shortages.

Mizuho has about 15,000 clerical positions at its core banking units and other group companies, and affected employees will be transferred to other roles, the bank said. The Yomiuri Shimbun reported the plans earlier.

Global banks are heavily investing in AI to improve operations ranging from product development to risk management. JPMorgan Chase & Co. spends about $2 billion annually on developing AI technology, an investment that it says also saves about the same amount each year.

The heads of Japan’s banks have been trying to ease concerns that AI will take away jobs.

“I don’t think humans will lose their value,” Mizuho Chief Executive Officer Masahiro Kihara said in October. “They can aim for more value-added work.”
 
 

The Japanese government plans to use its official development assistance to enhance economic security, a draft proposal showed Friday.

The ODA will be used to address economic security concerns, including securing energy supplies and critical minerals, according to the draft of the 2025 white paper on development cooperation.

The draft also calls for strengthening relations with members of the Association of Southeast Asian Nations to realize a free and open Indo-Pacific region.

The draft was approved at a joint meeting of the ruling Liberal Democratic Party's Foreign Affairs Division and other groups.

Foreign Minister Toshimitsu Motegi will report the draft at a cabinet meeting shortly.
 
 

Japan's fair trade commission conducted an on-site inspection of Microsoft's Japanese subsidiary on Wednesday over a suspected violation of antitrust law, a source close to the matter said.

The source, who declined to be identified, confirmed local media reports that Microsoft Japan in Tokyo is being probed over allegations it is unfairly preventing clients from using cloud platforms developed by its competitors.

"We are fully cooperating with the JFTC (Japan Fair Trade Commission) in their requests," a spokesperson for Microsoft said.

At issue is Microsoft's cloud computing server Azure.

The firm is suspected of making its software services, including "Microsoft 365" — known for apps such as Teams and Word — inaccessible on cloud servers other than Azure, local media including the Yomiuri Shimbun said.

The probe mirrors similar attempts in recent years by Japanese authorities to rein in the monopoly by global tech titans.

In August, the JFTC issued a cease-and-desist order to Google.
Google, JFTC said, was imposing binding conditions on Android smartphone manufacturers in Japan so that its online app store will be installed almost automatically.

In 2024, Amazon's Japanese subsidiary in Tokyo was similarly inspected for allegations that it is abusing its industry dominance to drive down prices.

Amazon Japan used its coveted "buy box" — a prominent spot on its website — against sellers, pressuring them into lowering prices to give it a competitive edge over rival e-commerce sites, the JFTC said.
 
 

The Nikkei stock index ended at a record high above 58,000 on Wednesday, as speculation about further interest rate hikes by the Bank of Japan receded after the government's nomination of two new BOJ policymakers.

The U.S. dollar briefly rose above the 156 yen line in Tokyo after the government submitted to parliament its nominations of university professors Toichiro Asada and Ayano Sato as new members of the central bank's policy board.

The market sees the two as proponents of a reflationary policy that pursues monetary easing. The U.S. currency later retreated to the mid-155 yen range due to wariness about yen-buying intervention, dealers said.

The 225-issue Nikkei Stock Average climbed 1,262.03 points, or 2.20 percent, from Tuesday to 58,583.12. The broader Topix index finished 27.18 points, or 0.71 percent, higher at 3,843.16.

On the top-tier Prime Market, the main gainers were nonferrous metal, electric appliance and real estate issues.

Stocks rose from the outset, buoyed by heavyweight technology shares after software-related issues climbed in the U.S. market, with the Nikkei renewing an intraday record for the first time in two weeks.

The market climbed further in the afternoon, as investors welcomed the nomination of the two BOJ policymakers, brokers said.

"The proposal fueled hopes that it would make it easier for the government of Prime Minister (Sanae) Takaichi to promote its economic policies," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Intelligence Laboratory Co.

Meanwhile, Mitsubishi Heavy Industries fell 1.2 percent to 4,752 yen after the company's subsidiaries were listed as among 20 defense-related entities subject to China's export ban for dual-use items amid a diplomatic row.
 
 

McDonald's (Japan) said Tuesday it will raise the prices of about 60% of its menu items by ¥10 ($.06) to ¥50 starting on Wednesday.

The markups reflect higher material, energy and labor costs, according to the hamburger chain.

The Big Mac will see its tax-inclusive price rise from ¥480 to ¥500. Prices will also go up by ¥20 for all three sizes of McFry french fries.
The price of the cheeseburger will also increase by ¥20, following a price hike in March last year.

Meanwhile, the prices of items such as a hamburger and the Teriyaki McBurger will remain unchanged both on their own and for combo meals.

The size of the price hikes will differ at some stores, including those at airports and in urban areas, as well as for delivery services, the company said.
 

 

China's commerce ministry said that only a small number of Japanese entities are targeted and that "honest and law-abiding Japanese entities have nothing to worry about".

China imposed export restrictions on 40 Japanese companies on Tuesday (Feb 24), citing national security concerns, as Beijing escalated a months-long row that has seen Chinese tourism to Japan plummet.

The spat between Asia's top two economies was sparked by comments by Prime Minister Sanae Takaichi in November that Japan could intervene militarily in any attack on self-ruled Taiwan.

The measures announced on Tuesday cover exports of "dual-use" items - which can have civilian and military uses - to 20 Japanese entities, including five subsidiaries of Mitsubishi Heavy Industries as well as Japan's space agency.

The commerce ministry added a further 20 Japanese organisations, including automaker Subaru, to a "watch list" requiring stricter reviews of exported items that could be used for military purposes.

"The above measures are aimed at curbing Japan's 'remilitarisation' and nuclear ambitions and are completely legitimate, reasonable and lawful," a commerce ministry statement said.

"Honest and law-abiding Japanese entities have nothing to worry about," it added.

Japan said Tuesday that export restrictions imposed by China on 40 Japanese companies were "absolutely unacceptable and deeply regrettable".

"We have strongly protested these measures and demanded their withdrawal," government spokesman Kei Sato said.

A Japanese trade ministry official earlier told AFP that Tokyo would "take appropriate measures" after analysing the impact of the new curbs.
Takaichi's comments on Taiwan, which China views as its territory and has not ruled out taking by force, have enraged Beijing.

The most visible consequence is a sharp drop in Chinese visitors to Japan - 61 per cent in January - after Beijing warned its citizens against going there.

In December, J-15 jets from China's Liaoning aircraft carrier twice locked radar on Japanese aircraft in international waters near Okinawa, according to Japan.

China has reportedly suspended imports of Japanese seafood. Japan's last two pandas were also returned to China last month.

Last month, China announced tightened controls on exports to Japan for items with potential military uses.

This fuelled worries that Beijing may choke supplies of vital rare-earth minerals, some of which are included in China's list of "dual-use" goods.


SHARES TUMBLE

The latest move singles out dozens of Japanese industrial heavyweights, including shipbuilding and aerospace firms.

Shares in Kawasaki Heavy Industries sank almost 5 per cent in Tokyo, while Mitsubishi Heavy Industries shed close to 4 per cent and IHI tumbled nearly 7 per cent.

Several of the firms listed are indeed active in the defence industry, manufacturing kits including ships, fighter jets and missiles for the Japanese military.

Japan has been shedding its strict pacifist stance, moving to obtain "counterstrike" capabilities and to ease rules on exporting lethal defence equipment.

Takaichi's government in December approved a record defence budget worth nine trillion yen (US$58 billion) for the coming fiscal year to expand its military capabilities.

Takaichi told parliament on Friday that China was intensifying attempts to change the status quo "by force or coercion" in the East China Sea and the South China Sea.

"Strengthening our defence capabilities is essential to protect the lives and peaceful livelihoods of our citizens as we face the most severe and complex security environment since the end of (World War II)," Takaichi said on Monday.

Japanese firms dealing with China were already struggling with delays in getting approvals, said Noriyuki Kawamura, professor emeritus of Japan-China relations at Nagoya University of Foreign Studies.

"With today's announcement, we can expect the process will be made even more stringent. I believe this will be a huge blow to companies involved," Kawamura told AFP.
 
 

Japan’s major real estate companies are expanding businesses overseas. With the ease of the COVID-19 pandemic and market conditions stabilizing, companies have continued making large-scale investments in the United States, Europe and Asia.

As growth potential in Japan is limited, the aim is for sustainable business growth by taking advantage of overseas demand.



Operating profit doubles

Mitsubishi Estate Co. plans to build a large office building complex in central London, the 72 Upper Ground.

Total construction cost is estimated to be around ¥160 billion, marking the company’s largest investment outside Japan to date.

The plan is to build 25-story and 14-story buildings on a site of the same size as the Marunouchi Building in Tokyo’s Marunouchi district.

The site is near the Thames River, with good transportation access. Commercial facilities will be set up in the lower floors.

Construction began in last September and is scheduled to be completed in 2029.

London has seen an increasing number of workers resuming working in-office, which had also seen a decline with the COVID-19 pandemic. Despite this, however, real estate development has remained stagnant. As a result, Mitsubishi hopes demand for attractive and brand-new office buildings will rise.

A senior official at Mitsubishi Estate London Ltd., expressed confidence about the demand, saying, “It has become a challenge for companies here to find good office spaces.”

Mitsubishi Estate has focused on developing real estate in the United States and other regions overseas, setting a goal of doubling its operating profit from overseas businesses from ¥45.8 billion in fiscal 2024 to ¥90 billion by later this decade.


Base equivalent to Tokyo

All five of Japan’s major real estate companies, including Mitsubishi Estate and Mitsui Fudosan Co., recorded their highest ever consolidated net profits as of the end of March 2025. This was driven mainly by the increase in the rents of office buildings and condominium prices in Japan.

However, “the foundation of the real estate business is population,” said an executive of a major real estate company. For this reason, reliance on domestic markets is seen to be approaching its limit as Japan’s population continues to decline. This has led real estate companies to seek new business ventures in other countries.

Mitsui Fudosan, which began overseas development in the 1970s, when Mitsubishi Estate also began, operates various office and housing buildings across the globe.

Since the start of 2025, the company has opened new LaLaport and Mitsui Outlet Park brand commercial facilities in Taiwan.

Going forward, the company plans to expand investments in the southern U.S. and Australia, where economic growth is expected.

There is also notable investment flow into Asian countries, where population growth rates and economic growth rates are high.

Sumitomo Realty & Development Co. announced two new development projects this year in addition to existing three sites, including office buildings, in Mumbai.

The total cost is estimated to be about ¥1 trillion.

“It will be a huge business base equivalent to Tokyo,” a company official said.

Daisuke Fukushima, senior analyst at Nomura Securities Co., said, “With surging materials costs due to the depreciating yen and rising wages, development costs in Japan have been rising.”

He pointed out the importance of operating businesses overseas, saying, “Diversifying business within Japan alone is impossible.”
 
 

There’s been a lot for Japanese Starbucks fans to be happy about over the last few days, as the chain rolled out its new sakura
beverages and drinkware. But while those additions to Starbucks’ menu and merch catalog are putting smiles on many people’s face, there are some less crowd-pleasing ones going into effect too.

Starting with the one that has a silver lining, as of February 18, Starbucks Japan branches no longer provides free bags to takeout customers.

Instead, customers who need a bag and haven’t brought one of their own will be charged 11 yen per order, and can receive a number of bags up to the number of items they’re purchasing.

It’s a very modest fee, and is part of Starbucks’ initiative to reduce the chain’s environmental impact by encouraging customers to bring their own reusable shopping bags.

▼ Since 2009, Starbucks Japan has been using FSC (Forest Stewardship Council)-approved sustainable-source paper for its takeout bags, but they want to be even more ecologically friendly.

 

The less popular change, though, will be that Starbucks is raising its prices, or, to use their press release’s terminology, “adjusting” them, in response to “rising materials and energy costs.”

The nature of the price increases is complex and vague. To start with, in 2025 Starbucks introduced a system of “location-specific pricing,” with Starbucks locations inside certain Japanese airports and expressway rest stops put into the category Location A, and branches in major metropolitan areas such as Tokyo’s 23 central wards and Osaka in the Location B classification.

Prices at Location A Starbucks are, on average, six percent higher than they are in a normal Starbucks, and at Location B branches they’re four percent higher than the norm. In total, about 30 percent of Starbucks Japan branches are in either the Location A or B group.

Under the new system, though, Starbucks will be transferring some of the Tokyo 23-wards branches to the more expansive Location A group.

In addition, while the beverage prices for Location A and B branches will not change, at Starbucks Japan’s remaining branches (i.e. those with the cheapest prices under the old system), prices for some permanent-menu beverages will be increased by 5 to 30 yen.

And at all participating Starbucks Japan branches, regardless of location classification, the price for the chain’s “One More Coffee” brewed coffee refill service will be increased by 20 yen, and some regular-menu food items will have their prices raised by between 5 and 30 yen.

None of these are massive changes, but with consumers in Japan growing exhausted at the constant string of prices for just about everything going up while most workers’ wages remain stagnant, being asked to pay more for what’s supposed to be discretionary, “fun” eating and drinking probably isn’t going to sit well with some people.

In addition, while it might be a common practice in the U.S., in Japan it’s somewhat unusual for a national chain to charge different prices based on branch location.

Starbucks Japan isn’t the first company to do so (McDonald’s Japan also charges different prices for certain items depending on location), but Starbucks does run the risk of being seen as trying to squeeze every last yen they can out of their customers by saying that people in certain parts of Tokyo have to pay more for the same cup of coffee than they would in another part of the country, or even another part of the same city.

All that said, with how consistently crowded Starbucks Japan branches in prime locations are, Starbucks probably isn’t too worried about losing a handful of customers if they can earn more per person who does buy something.
 

 

The Japanese government plans to expand the market for used goods to around 4.6 trillion yen ($29.7 bllion) in 2030, up 32 percent from 2024, to curb waste and reduce carbon dioxide emissions, a government source said.

The government will draw up guidelines by fiscal 2027 to outline requirements for business operators, following cases in which consumers have received poor-quality items via flea market apps. It will also urge local governments to utilize secondhand items, the source said.

The measures to promote used goods will be compiled in a road map to be drawn up by the Environment Ministry as early as March, the source said.

The market, calculated based on annual spending on 22 categories of used goods including books and home appliances purchased via online auctions and secondhand retailers, has seen annual growth of 1 percent in recent years, so a sharp expansion would be required to achieve the government target.

Specific measures will include setting up a system to evaluate secondhand retailers and operators of flea market apps in line with the guidelines to support the activities of highly rated businesses.

The government also plans to promote services to connect operators with elderly people wishing to sort their belongings to facilitate the collection of unnecessary items.

The government will examine factors hindering the purchase of used goods by municipalities and revise rules on procuring environmentally friendly products, the source said.

It is also considering holding campaigns to encourage purchases of used goods during the year-end, when many people clean up their homes, and the moving season in spring.
 
 

Japan and the United States have chosen three inaugural projects to kick off a $550 billion (about ¥84 trillion) investment package in the United States.

The two nations agreed on the investment package in July during talks over U.S. tariff measures. The $550 billion in investments are to be made by January 2029, when U.S. President Donald Trump ‘s term of office expires.

Just over 6% of the total amount, or $36 billion, will be used in the first three projects. Both countries are hastily making preparations for the second set of projects, ahead of the Japan-U.S. summit scheduled in March, but careful consideration is required regarding profitability and other factors.

Economy, Trade and Industry Minister Ryosei Akazawa emphasized on Wednesday that the latest agreement would benefit both Japan and the United States.

“Japan and the United States will cooperate to build supply chains in sectors critical to economic security. Japanese companies can expect business expansion through equipment supply and other avenues,” Akazawa told reporters.

The three projects were agreed upon only after considerable difficulty.
Japan and the United States held discussions from December at a committee of senior government officials and others who worked through the year-end and New Year holidays.

According to people involved in the negotiations, the U.S. side was eager to move forward with the three projects it proposed. The United States is said to have intended to announce the projects by the end of January.

However, the negotiations ran into trouble over issues such as income and expenditure plans to minimize business risks and ensure profitability. Both sides were able to reach an agreement through talks between Akazawa and U.S. Commerce Secretary Howard Lutnick on Feb. 12.

 

Sources said they finally were able to do so because the U.S. side also made concessions, such as lowering interest rates and reducing business costs.

The three projects are all in areas important to economic security, such as strategic materials and energy. They involve the construction of a gas-fired power plant; the development of a facility necessary to export crude oil; and the building of a synthetic diamond manufacturing facility.

The construction of the gas-fired power plant in Ohio will be managed by SoftBank Group Corp., which is promoting the development of infrastructure such as data centers necessary for the development and operation of artificial intelligence in the United States.

Toshiba Corp. and Hitachi, Ltd. are expected to supply power generation and transmission and distribution equipment, in addition to other related equipment.

“We will work positively in the project within the scope of acceptable conditions,” Toshiba said after the latest announcement. Hitachi commented, “We are honored to be expected to contribute to the realization of the project.”

Operations at the infrastructure to be built in Texas to export crude oil will involve collecting crude onshore, transporting it offshore via pipeline and shipping it on large tankers. The project envisions exporting crude oil to Japan in emergencies.

Among the participating companies are Mitsui O.S.K. Lines, Ltd., which will handle vessel operation management, and Nippon Steel Corp., which will supply materials.

“Large-scale projects generate demand for steel materials. We’ll consider supplying steel materials in a forward-looking manner,” a public relations official at Nippon Steel said.

The third project is the building of a synthetic diamond manufacturing facility in Georgia, essential for polishing and processing semiconductors and automotive parts. China dominates the global artificial diamond market.

Asahi Diamond Industrial Co., which handles tools for semiconductor components, imports 80% of its raw artificial diamond materials from China. “If we can stably procure raw materials from the United States, it would offer us significant benefits in terms of diversifying supply sources,” an Asahi Diamond official said.

To execute the three projects, Japan and the United States will establish a special purpose entity. The Japan Bank for International Cooperation will provide funding, while three major Japanese banks will extend loans with a loan guarantee from Nippon Export and Investment Insurance.

The U.S. side will contribute land and other tangible assets, while the U.S. federal government will help with construction permits and approvals.

Profits from the projects will be split 50-50 between Japan and the United States up to the amount covering Japanese loans and interest, and 90% of any profits beyond that will be received by the United States and 10% by Japan.

The Trump administration has also agreed with other parties, including the European Union and South Korea, to receive massive investments in exchange for tariff reductions.

The three projects, announced ahead of other countries and regions, are likely become a model case for relevant projects.

However, one participating company expressed caution, saying; “There are concerns about who will bear the risks if things go wrong. We need to assess the risks until the details are finalized.”
 

 

Major Japanese convenience store operator Lawson Inc will enter the Indian market, planning to open its first store in Mumbai in 2027 and launch a total of 100 stores in the country by 2030, a company official said.
 
Starting with five directly operated stores in Mumbai in 2027, the company aims to eventually expand its presence in the South Asian country to 10,000 stores in 2050, the official said.
 
Lawson -- which already has about 7,800 stores overseas, mainly in China -- views India, the world's most populous country, as the next potential pillar of profit-making outside Japan.
 
Seeing India continue to build infrastructure that enables the transport of food products at low temperatures, the company has determined it can enter the market, according to the official.
 
Among Lawson's Japanese rivals, Seven & i Holdings Co opened its first 7-Eleven store in India in 2021. It had about 60 stores as of September last year.
 

Japan's hydrogen car market is caught in a familiar spiral: fewer stations mean fewer buyers, which in turn makes fewer stations viable. By Stewart Burnett

Annual sales of fuel-cell electric vehicles (FCEVs) in Japan fell 83% between 2021 and 2025 to just 431 units, as a collapsing refuelling network leaves owners with diminishing options for topping up and deters new buyers entirely. Nikkei reports that the country now has just 149 hydrogen stations: around 10% fewer than five years ago and less than half the 320 the government had targeted.
 
Under a 15-kilometre access standard, roughly 90% of Japan qualifies as existing in a coverage gap, with more than 1,500 of the country’s municipalities having no charging station whatsoever. Roughly 70% of stations also close by 5PM—many do not even operate daily—limiting coverage to fewer than 10% of Japan’s population after 6PM even in Tokyo.

The economics driving the retreat are, unfortunately, self-reinforcing. Station operators told Nikkei that construction costs for a single station come in around JP¥500m (US$3.3m), while throughput remains far too low to cover ongoing staffing and maintenance costs.

One Tokyo operator, speaking off-the-record, said the daily use hovers around five fuel-cell buses per day, but the break-even threshold of ten buses or thirty passenger cars. 

From April, government purchase subsidies for fuel-cell vehicles will be trimmed down to a maximum JP¥1.05m, reduced from JP¥1.5m.

Meanwhile, subsidies for battery-electric vehicles will increase by up to JP¥1.3m—a clear indication of shifting confidence from the Japanese government.

The divergence widens an already substantial price gap: Toyota’s Mirai starts at JP¥7.41m (US$48,000) and Honda’s CR-V e:FCEV at JP¥8.33m, compared with battery EVs available from around JP¥2m. 

This squeeze is not confined to Japan: Austria’s OMV exited the hydrogen station business entirely in 2025, leaving the country without any publicly-operated infrastructure whatsoever.

The same year saw Germany’s H2 Mobility closing roughly 30% of its domestic network. The country’s largest truckmaker, Daimler Truck, also pushed series production of its next-generation fuel cell models into the 2030s from an originally-planned launch in 2027.

Similar developments have emerged among most global automakers previously interested in the segment. For example, Stellantis discontinued its fuel-cell light commercial vehicle programme citing no mid-term economic viability, while General Motors halted next-generation development and wound down its joint venture with Honda—ending shared production of the CR-V e:FCEV in 2026. Renault and Cummins have both made similar exits from passenger and electrolyser segments respectively.

Toyota and Hyundai remain the most committed major players in the passenger vehicle segment. Toyota President Koji Sato has argued that building a hydrogen value chain from production through to end-use is the precondition for any recovery, and the company plans to install hydrogen production equipment at its main Aichi factory in fiscal 2026.

The automaker has gone to lengths to reiterate its confidence in the flagging segment, despite a broader retreat.

Hyundai, on the other hand, remains committed to launching its next-generation Nexo FCEV, offering a range of over 826 km and a fill time of just five minutes—making it essentially comparable to gasoline refuelling.

The vehicle will launch in Japan during the first half of 2026. BMW is targeting series production of a hydrogen iX5 SUV by 2028. Both Hyundai and Toyota revealed next-generation fuel cell technology in 2025.

Whether the automakers’ planned vehicles arrive in time to reverse the infrastructure retreat is the central question facing the technology, although it does appear unlikely.

For now, the market that was supposed to lead the world in accelerating hydrogen mobility is contracting faster than any intervention appears capable of reversing.
 


 

The Japanese government plans to revise the economic security promotion law to support companies with economic security-linked projects overseas.
This will be the first revision of the law, established in 2022.

The move comes amid a rapidly changing international environment, as the Ukraine-Russia war drags on and China continues to flex its economic muscle. Competition is also intensifying in the development of artificial intelligence and other cutting-edge technologies.

The government will submit a bill to revise the law during the current session of parliament, which started Wednesday.

Under the revised law, Japan will support designated overseas projects, such as those dealing with the development of seaports crucial to logistics and data centers essential to AI development.

The government will also relax regulations under the Japan Bank for International Cooperation law to enable the state-backed lender to provide funds through a subordinated investment scheme in the event of losses in overseas projects. The scheme will mitigate loss risks to other investors.

Japan will launch a new think tank to examine supply chain-linked challenges in securing key economic security goods while enhancing the country’s research capabilities.

The think tank will be placed under the industry ministry-affiliated Research Institute of Economy, Trade and Industry and will gather experts in the fields of diplomacy, intelligence, defense, economy and technology to make agile policy proposals. It will also collaborate with foreign research institutes.

The law revision will include the medical field in a list of areas subject to a system that prevents foreign cyberattacks on core infrastructure operators.
Additionally, Japan will support work to lay optical cables under the sea.
 

 

Japan's exports to the United States fell for the second straight month in January, indicating the lingering impact of the Trump administration's tariff measures.

Finance Ministry figures released on Wednesday show shipments to the US were down 5 percent from a year earlier to 1.46 trillion yen, or more than 9.5 billion dollars.

Auto exports declined 9.9 percent, while those of pharmaceuticals plunged 70.6 percent.

But Japan's global exports last month rose 16.8 percent year-on-year to 9.18 trillion yen, marking the fifth straight month of increase.

Imports to Japan from the rest of the world slid 2.5 percent to 10.34 trillion yen. That was the first decrease since August last year.
 
 

Japan is turning up the heat on its “gastrodiplomacy” by making embassy chefs’ posts more attractive and better paid. 

After years of chronic shortages in the kitchens of its embassies and consulates, the Foreign Ministry has rolled out a sweeping overhaul to attract and retain the chefs who serve as the country’s “culinary diplomats.”

The reform raises pay, formalizes contracts, and is intended to keep Japanese cuisine firmly on the global diplomatic menu.

By offering annual compensation of at least 6 million yen ($39,000)—along with greater professional stability and autonomy—Tokyo hopes to ensure that the "washoku" Japanese cuisine served at key diplomatic banquets is prepared by well-qualified professionals.

The ministry launched the new system in January, significantly improving working conditions for chefs employed at official residences and other overseas missions. Low pay and uncertain work terms had long deterred applicants, leaving many posts understaffed.

By upgrading compensation and standardizing employment conditions, the ministry aims to secure the talent it needs to deploy Japanese cuisine more effectively as a diplomatic tool.

Until now, “official residence chefs” at Japan’s more than 200 overseas diplomatic missions—including embassies and consulates-general—typically worked under private contracts with ambassadors or consuls general.

They prepare Japanese and other cuisines for VIP dinners and receptions, promoting Japanese culture through food.

But as the global popularity of Japanese cuisine has lifted pay and conditions in the private sector, the relatively modest compensation at diplomatic posts—averaging about 4.5 million yen a year—became a liability.

The jobs grew less competitive, shortages persisted, and as of May last year, more than a dozen missions had no chef on staff.

Under the former arrangement, compensation was financed roughly one-third from heads of mission’s personal funds and about two-thirds from public subsidies.

Employment terms also tended to mirror the ambassador’s or consul general’s own assignment, with no predetermined tenure—making it difficult for chefs to plan a career.

The ministry has now revamped the program and will rename “official residence chefs” as “overseas mission chefs.” Contracts will shift from private agreements with ambassadors and other heads of mission to official contracts with the overseas missions themselves.

Annual compensation will be set at 6 million yen or more, and the term will be standardized at two years, with annual renewals possible. Previously, chefs were generally required to live in at the official residence; under the new rules, they will be allowed to live in privately rented housing.

In its budget request for the next fiscal year, which starts in April, the ministry earmarked 2.53 billion yen for the program—about 1 billion yen more than the previous year.

Ahead of the rollout, the ministry began recruitment in July last year and drew more than three times as many applications as the roughly 50 available slots.

A ministry official acknowledged “a sense of crisis” surrounding the diplomatic chef system, but said the reforms should “gradually ease the staffing shortfall.”
 
 

Japanese home electronics retailer Nojima is eager to boost its merger and acquisition activities, ready to spend up to ¥300 billion per deal, sources have said.

"There is a possibility of spending ¥200 billion to ¥300 billion" per deal, President Hiroshi Nojima, 75, said in a recent interview.

The company is known for its aggressive M&A activities. Its largest deal is the ¥85.4 billion purchase of mobile phone distributor Conexio in 2023. Other acquired companies include internet business Nifty and personal computer maker Vaio.

The president said potential acquisition targets are companies that can generate synergies with digital products, such as home appliances and mobile phones.

Still, after the case of Suruga Bank, in which Nojima acquired a stake but later sold it, he said: "Acquisition is not the goal. If we can't strengthen our business, we let go."

The company has a target of achieving consolidated sales of ¥1 trillion by around 2030, against ¥853.4 billion for the year that ended in March 2025.

The target "will be raised to ¥3 trillion in the near future," the president said. "I want to see the number reach ¥10 trillion while I'm alive."

Overseas, the company aims to increase sales from ¥81.3 billion to ¥100 billion early by expanding its operations mainly in Singapore and Malaysia.

In April this year, Nojima will raise its starting monthly salary for new graduates to a maximum of ¥400,000.

Describing human resource development as the company's "eternal theme," the president highlighted the importance of management decisions reflecting input from front-line operations, saying, "Bosses should be utilized by subordinates."

He also said the company has selected 30 outstanding employees who understand its management philosophy to participate in a special team as part of efforts to train successors.
 
 

Sony Group Corp. has continually been downsizing its once stellar consumer electronics business and clarifying its shift to the entertainment industry, which includes games and music.

Last month, the company announced that it would spin off its television business. Following that announcement, it decided to end shipments of Blu-ray disc recorders.

Sony’s business restructuring is proceeding at a rapid pace, with nothing off-limits.


Withdrawal from Blu-ray

The announcement of the end of the shipments came on Feb. 9 via the company’s official website.

“We will stop shipping all models,” it said. “There will be no successor models.”

Blu-ray discs used to be a successful media format. In the 2000s, the technology competed for dominance with HD- DVDs, which were led by Toshiba Corp. Thanks to the backing of major American film studios such as Warner Bros, Sony won that battle and went on to expand its market share of high definition DVDs.

However, changes in consumer viewing habits have dramatically changed the situation. The spread of video streaming services and the rise of large-capacity storage drives has led to a decline in demand for Blu-ray discs.

In February 2025, production of Blu-ray discs for recording was discontinued.


Nothing off-limits

Sony’s stance on business restructuring became clear when Hiroki Totoki, who became president in 2023, began serving as chief executive officer in April 2025.

At a briefing in February 2025, Totoki suggested that nothing would be off-limits when it came to rearranging the composition of the company’s portfolio.

“We see our portfolio as dynamic rather than static and will continually review it,” Totoki said.

The restructuring also extends to Sony’s former mainstay television business. In January, the company announced plans to separate its Bravia brand television business and transfer it to a joint venture established with Chinese electronics giant TCL Electronics Holdings Ltd. TCL will hold a majority stake of 51% in the joint venture.

In the fiscal year ending March 2025, Sony’s television business saw sales of ¥564.1 billion, down 40% from 20 years ago.

The rise of Chinese and Korean rivals, whose low prices give them an advantage, was a major reason for the move, with Sony positioning the television business as an area in need of “structural reform and transformation.”


Intellectual properties

On the other hand, Sony has been accelerating efforts to strengthen its entertainment-related business.

In 2025, the company announced tens of billions of yen worth of investments in major publishing companies Kadokawa Corp., which own many popular intellectual properties, and Bandai Namco Holdings Inc.

It will also bring Peanuts Worldwide LLC under its umbrella as a consolidated subsidiary. Peanuts Worldwide manages the intellectual property for the popular cartoon Peanuts, known for the character Snoopy.

Sony has been expanding its entertainment businesses, which cover games, movies and music. In the fiscal year ended March 2015, sales from these businesses made up about 30% of the company’s total sales. As of the fiscal year ending March 2025, however, that figure had reached about 60%.

The company hopes to further increase earnings in entertainment by leveraging the various intellectual properties it holds.

Nevertheless, Sony still appears to have plans to continue strengthening its technological development in some areas.

“Even if it’s no longer in the form of consumer products, Sony will retain the technology necessary for entertainment,” said Waseda University Prof. Atsushi Osanai, an expert on the electronics industry.

Sony is expected to continue developing technologies in areas such as video devices and image sensors, as the company remains competitive in these areas and the technologies synergize with the entertainment sector.
 
 

U.S. restaurant chain Anna Miller's will reopen in Japan for the first time in three years on Friday, with its distinctive staff uniforms unchanged from the previous run, according to its Japanese operator.

A media preview of the American cuisine and pie specialty restaurant was held Thursday ahead of its opening in Tokyo's Minami-Aoyama district.

It marks the brand's first physical store in Japan since its branch in Tokyo's Takanawa district closed in August 2022, operator Imuraya Food Service Co said.

With a total floor space of just over 166 square meters, the new store will occupy the first two floors of a building near Gaienmae Station on the Tokyo Metro Ginza Line.

The restaurant features an interior designed to evoke 1970s suburban America and offers 32 seats. A display case on the first floor caters to takeout orders.

"We hope to share information about American culture and food, earning the appreciation of our customers," Masanori Kanae, a senior advisor at Imuraya Food Service said.

The new store was originally scheduled to open in December but was postponed due to construction delays. The brand currently operates in Japan only through online sales.

Imuraya has long operated the restaurant chain in the Tokyo metropolitan area under a license from the U.S. operator, opening its first store in Aoyama in 1973.

The brand gained popularity for its miniskirt and apron uniforms and American-style pies, which were not widely available in Japan at the time.
 
 

 

Toyota is safeguarding its nearly $1 billion investment pledge to air taxi maker Joby Aviation by troubleshooting production processes and mulling a deeper manufacturing role.

The Japanese automaker, which last year became Joby’s largest shareholder, has a team of almost 200 employees working to supply critical parts, training tips and assembly line know-how.

That involves deploying a set of lean manufacturing precepts known as the Toyota Production System, or TPS, said Sandy Lobenstein, Toyota’s group vice president of flying mobility.

"We’re really trying to bring TPS and the philosophy of TPS into the operations here,” Lobenstein told reporters on a tour of Joby’s factory. "Those types of innovations are helping to improve the lead time to production and scaling.”

Joby is among a handful of startups developing eVTOL aircraft — electric vertical takeoff and landing vehicles — to fly customers on short commuter journeys via battery-powered air taxis. The Santa Cruz, California-based firm is currently set up to make one aircraft a month, but plans to boost that to as many as four per month by 2027.

Shares of Joby, which will report fourth-quarter earnings on Feb. 25, are down about 23% this year. They fell sharply last month after the company announced a $1 billion equity and convertible bond offering to raise cash.

Full certification for commercial flight operations by the U.S. Federal Aviation Administration and regulators in other countries is still pending.

Joby previously said it aimed to start commercial passenger services in Dubai by early this year, but the exact timeline is unclear. It has pushed back earlier goals to begin service from 2024 and then 2025.

"We are targeting to be able to start carrying passengers this year,” Eric Allison, Joby’s chief product officer, told reporters.

As it awaits certification — and the final $250 million tranche in Toyota’s promised $894 million in funding — the company is assembling prototype aircraft and stress-testing parts and manufacturing processes.

Joby wouldn’t specify the defect rate for parts undergoing testing, but Allison said the number of nonconforming components is "trending in the right direction.”

The car giant is now considering a proposed strategic manufacturing alliance to strengthen its relationship further ahead of Joby’s planned production ramp-up. Joby has said it aims to make as many as 500 aircraft a year once it builds out facilities in California and Ohio.

Toyota began financing Joby in 2020, two years after its venture capital arm participated in a funding round. It has taken on a larger role as its investment has grown. Toyota’s Lobenstein was tasked with overseeing the partnership a year ago.

For now, Toyota’s main role is advisory, in addition to supplying key subcomponents for Joby’s aircraft motors. The automaker’s North American manufacturing chief, Kevin Voelkel, has visited Joby’s operations twice, most recently this month, to share tips on things like improving efficiency and safety.

Visible signs of Toyota are scant at Joby’s main production hub near Monterey, California. Unlike the carmaker’s own plants or even Honda Motor’s jet factory in North Carolina, there’s no central assembly line.

Parts are assembled at various separate workstations in a hangar and then transported by truck to a nearby Quonset hut for final assembly.

Also absent are Toyota’s trademark andon cords to flag problems, robots pushing parts bins and wall-hung banners exhorting workers that "Safety is No. 1!” Toyota currently has about 30 employees on site.
 
 

Japanese automaker Nissan Motor Corp reported deeper losses for the latest quarter through December compared to a year earlier, as restructuring costs cut into its profitability.

Nissan, based in the port city of Yokohama, said Thursday it posted a 28.3 billion yen ($185 million) loss for the October-December quarter, about twice the 14 billion yen loss it recorded a year earlier.

Quarterly sales slipped 6% to nearly 3 trillion yen ($19.6 billion) from 3.2 trillion yen the year before.

“Unfortunately, when you do restructuring, there are costs that are incurred,” Chief Executive Ivan Espinosa told reporters. “In a way, it is expected.”
He said Nissan was on the right track but acknowledged headwinds from President Donald Trump’s tariffs and other pressures on sales.

Nissan, which makes the Leaf electric car and Infiniti luxury models, is hoping to achieve an operating profit by the end of fiscal 2026. It expects an operating loss for the current fiscal year and is projecting a 650 billion yen ($4.2 billion) net loss for the year through March.

A Mexican with two decades of experience at Nissan, Espinosa has been trying to steer a turnaround at the money-losing automaker since he took the job last year.

Nissan has slashed jobs and sold its headquarters building. It is closing its flagship factory in Oppama, Japan, as part of its global production restructuring efforts.

Some analysts say the popularity of electric vehicles is subsiding, and that might hurt automakers like Nissan, which has been bullish on EVs.

Espinosa said Nissan needs to do more to win over consumers to EVs, including new kinds of batteries, but was optimistic about the new Leaf model.

Nissan stocks, which have slipped over the past year, gained 0.5% on Thursday.

Nissan has a partnership with French automaker Renault and smaller domestic automaker Mitsubishi Motors Corp.