Japan's prime minister to label China an "important neighbour" in upcoming policy speech

Sanae Takaichi, Japan's prime minister, is set to deliver a policy address to the Diet on Monday in which she will refer to China as an "important neighbour" and commit to fostering a stable, constructive bilateral relationship, even as diplomatic ties have been strained since her comments on Taiwan. The speech will also unveil a comprehensive strategy to confront Japan's demographic decline, a problem highlighted by the population falling below 120 million for the first time in 42 years.

Takaichi will reaffirm a proactive fiscal stance amid concerns over rising inflation and the country's debt burden, and propose a two-year reduction in the consumption tax on food to ease voters' cost of living pressures. Additionally, she will pledge continued support for the International Criminal Court following recent U.S. sanctions on its Japanese president, Tomoko Akane. The address will open a parliamentary session running through December, during which several bills, including the tax cut, will be debated.