- Restart of Kashiwazaki-Kariwa Nuclear Power Station
- Financial Market Developments
- Delisting Trends
- Japan—China Relations
- Public—Private Role-Sharing in the 17 Strategic Sectors
- Chinese Character of the Year
Restart of Kashiwazaki-Kariwa Nuclear Power Station
(In response to a question regarding Niigata Prefecture's decision today (Dec. 23) concerning the restart of Tokyo Electric Power Company (TEPCO)'s Kashiwazaki-Kariwa Nuclear Power Station.) I sincerely welcome Governor Hanazumi's decision, on behalf of Niigata Prefecture, to accept TEPCO's request for local understanding of the restart of Units 6 and 7 of the Kashiwazaki-Kariwa Nuclear Power Station. I express my deep respect for Governor Hanazumi and all those involved in the prefectural administration for reaching this conclusion after many years of examining safety and disaster-prevention measures and listening carefully to residents' concerns.
The Kashiwazaki-Kariwa station is a key power source that contributes to Japan's stable energy supply and progress toward carbon neutrality, while also enhancing regional resilience by supplying electricity from the Sea of Japan coast to the Tokyo metropolitan area. Keidanren is grateful for the understanding shown by the people of Niigata Prefecture and hopes to contribute to revitalizing the region through deeper engagement and cooperation with the local business community.
TEPCO and the national government should faithfully implement the safety and disaster-prevention measures confirmed with Governor Hanazumi, and continue providing information to further strengthen understanding among prefectural residents. I also strongly urge TEPCO to ensure a reliable restart by responding appropriately to upcoming Nuclear Regulation Authority inspections and start-up procedures, while maintaining security and improving operations to support the plant's stable operation in the years ahead.
(In response to a question regarding nuclear power stations across Japan that are preparing for restart.) My understanding is that Hokkaido Electric Power Company's Tomari Nuclear Power Station has begun moving toward restart. These developments are expected to support semiconductor firms such as Rapidus, facilitate the siting and operation of data centers and help improve people's living standard. I hope each of these developments will reinforce one another and move in a positive direction. In terms of nuclear policy, Keidanren intends to further emphasize strengthening industrial infrastructure and competitiveness, supporting economic growth and advancing decarbonization, as well as the fact that affordable and stable supplies of clean energy greatly contribute to people's daily lives.
(In response to a question about whether the Recommendations for Revising the Strategic Energy Plan, proposed in October 2024, will be updated in light of progress on nuclear restarts.) The underlying concerns that informed the original proposal have not fundamentally changed. The proposal addressed Japan's energy composition from a medium- to long-term perspective and noted that, even assuming restarts of existing reactors, nuclear capacity would decline precipitously in the 2040s and beyond if replacements and new construction do not proceed. The core of the proposal, namely that nuclear policy must advance on the firm foundation of safety and local understanding, remains unchanged. If new issues emerge as restart efforts continue to move forward and action becomes necessary, Keidanren will consider flexible responses, including more detailed recommendations, in line with the basic principles of the proposal.
(In response to a question about the status of considerations regarding "giving back" to Niigata Prefecture, which had been mentioned during the Keidanren's meeting with Governor Hanazumi.) We have already begun considering this and recognize that we are now in a position where those efforts should be accelerated. I believe the first priority is to communicate with the business community in Niigata. In other words, Keidanren must listen carefully to the needs of Niigata's business community regarding the contributions or cooperation they require. Based on those needs, we want to do as much as we can. For instance, one area where we can move quickly is introducing Niigata products to the Tokyo metropolitan area and helping expand sales channels. We have already reached out to Keidanren vice chairs and member companies, and at Nippon Life where I serve, I recently issued instructions to begin concrete steps.
(In response to a question on Japan's Nuclear Damage Compensation System and whether Keidanren's proposals to limit operator liability in the event of a major nuclear accident—shifting excess liability to the government—would place a heavy burden on the public after an incident.) Under the current system, nuclear operators bear strict and unlimited liability, making it practically impossible for a company to continue functioning as a normal private enterprise after a major incident. This presents a significant challenge when evaluating investment in nuclear energy. Based on this understanding, we previously recommended revising the system so that operator liability is limited, with the government covering any amounts beyond that limit. With considerable progress being made toward restarting existing nuclear plants, we believe it is time to resume discussions on the appropriate division of responsibilities between private companies and the government in the event of a major accident. As long as the restart of nuclear plants continues to advance, we believe affordable and stable energy supply can be achieved.
(In response to a question about whether revising the system to allow some degree of government compensation might ultimately burden the public, meaning nuclear energy cannot be considered low-cost.) Energy prices should not be considered solely a domestic issue, as international competitiveness for both industry and the standard of living is also important. In fact, even within Japan, electricity prices vary by region. With households struggling under recent rising prices, securing affordable and stable electricity rates is of critical importance. Globally, many countries including major Western economies are reassessing nuclear energy as a means of maintaining and strengthening international competitiveness of living standards and industrial infrastructure.
Financial Market Developments
(In response to a question regarding the financial market and the impact on the Japanese economy of the yen's depreciation and rising long-term interest rates amid concerns about fiscal deterioration.) If fiscal deterioration were to erode confidence in Japan, it would have major consequences not only for corporate management but also for citizens' daily lives. Maintaining market confidence is therefore of fundamental importance. That said, while speculation over fiscal consolidation may be playing some role, I believe the recent movements in exchange rates and long-term interest rates are being driven more strongly by expectations about the differing policy directions of the Bank of Japan and the U.S. Federal Reserve, and by views on the future course of Japan's monetary policy. More recently, both the exchange rate and long-term interest rates have shown some signs of stabilizing.
The fiscal 2026 tax reform and budget formulation follow Prime Minister Takaichi's direction of responsible proactive fiscal policy and seek to realize a strong economy through raising Japan's potential growth capacity. It is essential to communicate this approach to markets consistently and to make clear that the government is keenly aware of the need to maintain market confidence. From this standpoint, I will continue to firmly express my views to the government going forward. Keidanren will encourage companies to shift their mindset toward expanding capital investment, R&D investment and human capital investment as Japan transitions to an investment-driven economy, rather than reacting emotionally to short-term market movements. I am convinced that strengthening Japan's fundamentals and lifting its potential growth capacity through these efforts will lead reliably to correcting the trend of yen depreciation.
Delisting Trends
(In response to a question about whether the record number of companies expected to delist this year reflects a shift away from shareholder-centric management.) Whether the companies in question chose to delist specifically to avoid shareholder-centric management requires careful examination. The stock market plays an extremely important role in raising a company's social and international profile and enabling it to pursue its growth story. Corporate governance reforms also assume the presence of a functioning equity market. Our recent opinion paper on corporate governance for sustainable growth likewise focuses on enhancing mid- to long-term corporate value by further revitalizing the stock market. While mindful of the recent tilt toward shareholder primacy, the paper stresses the importance of maintaining the equity market as the foundation for encouraging autonomous corporate management and calls on investors and the government to help create conditions that support this. The reasons for delisting vary widely across companies, and I do not believe they can be attributed solely to aversion toward the stock market.
Japan—China Relations
(In response to a question regarding the prospects for organizing a business delegation to China in January.) I understand that Chairman Shindo of the Japan—China Economic Association recently visited the Chinese Embassy in Tokyo and met with Ambassador Wu to explain the importance of the delegation. The association's secretariat continues to coordinate with the Chinese Embassy and other channels, but I have heard that the outlook is not especially encouraging. Precisely because we are in a politically difficult phase, as I have repeatedly stated, the answer lies in persistently continuing dialogue at all levels across a wide range of fields. I will continue monitoring developments closely.
(In response to a question about how the decision regarding the January business delegation to China will be made.) When I visited Ambassador Wu on November 28, I conveyed that the delegation has historically been an important asset for both Japan and China. More recently, Chairman Shindo of the Japan—China Economic Association likely conveyed the same point to Ambassador Wu. Only a short time has passed since Chairman Shindo's meeting with the ambassador, so at this point we can only monitor developments closely.
(In response to a question about whether there is leeway to determine the delegation's timing in light of broader Japan—China relations.) Looking at the delegation's history, its timing has occasionally shifted due to various circumstances, but aside from the COVID-19 pandemic, it has never been discontinued and has continued annually even when Japan—China relations faced difficulties. Through these visits, the two countries have consistently held dialogue on pending issues as they arose. For that reason, I believe it remains important to visit China at an appropriate time next year. Although the political environment is challenging, the Japan—China Economic Association continues coordinating toward realizing the delegation's visit, and I intend to keep a close watch on developments.
Public—Private Role-Sharing in the 17 Strategic Sectors
(In response to a question regarding how public and private roles should be allocated within the 17 strategic sectors identified by the Takaichi administration.) The 17 strategic sectors vary widely, and I do not believe it is possible to prescribe a uniform division of roles between the public and private sectors. That said, even where private companies take the lead in investment, areas related to economic security should be guided by the government, which must set policy direction and work closely with the private sector.
Content industries have grown through private-sector creativity and innovation, but as international competition intensifies, concerns are rising that talent shortages in Japan and measures against overseas piracy will become challenges for nurturing the industry. The private sector will remain the main driver of growth in this field, but lifting Japan's overseas content revenues from the current roughly 6 trillion yen to 20 trillion yen will require winning fierce global competition, making public—private cooperation essential for addressing the challenges ahead.
Across the 17 sectors, private-sector investment must play a central role, but some areas require government leadership for economic security, while others call for well-designed public—private collaboration to remain competitive globally.
(In response to a question about whether private-sector investment judgment will become increasingly important.) For more than 30 years, Japan's economy has operated under a contractionary equilibrium where cost-cutting took priority and maintaining employment was emphasized over raising wages. Shifting this corporate mindset should be a prerequisite to achieve an investment-driven economy. Based on my experience in the financial sector, I believe industries and companies have already developed capabilities in evaluating individual investment opportunities, sourcing potential projects and conducting due diligence. Going forward, patience and persistence will be essential, and strengthening individual investment judgment and project-sourcing capabilities will become even more important.
Chinese Character of the Year
(In response to a question asking for a single kanji or Chinese character that represents the year.) As the kanji that best captures 2025, I would choose 転 (ten), because it was a year of major shifts both in Japan and around the world. It also conveys the image of Japan's economy moving to a new stage of development through this transition.
This resonates with Keidanren's focus on transforming corporate mindsets to achieve an investment-driven economy. With these aspirations for the coming year in mind, I would choose 転 as this year's kanji.