Japan

Intelligence for Better Decision Making

AI Driver-Assist Trials Advance on Japan’s Shared Railway Tracks
Nov. 27, 2025 | Transportation & Logistics

Innovative AI-driven driver-assist technology is undergoing trials on shared sections of Japan’s railway network.

**Keihan Holdings and Keihan Electric Railway have teamed up with Tokyo-based IT firms BeCore and Various Robotics to test an AI-driven driver-assist system on shared-track sections of the Otsu Line.**
This initiative combines machine learning models with on-board hardware to boost situational awareness where trains and road traffic share the same right-of-way, addressing safety challenges in mixed-traffic environments as part of a broader push to apply advanced digital technologies to railway operations.

**A cab-mounted camera continuously captures video of the track and adjacent roadway, while real-time AI analysis detects potential hazards such as cars, bicycles, and pedestrians encroaching on the shared right-of-way.**
When the system identifies a risky situation, it alerts the driver through synthesized voice prompts and warning lamps on the console. An additional module monitors traffic signal statuses and notifies operators of changes, helping them comply with road signal indications and supporting safer train movements at intersections and crossings.

**The demonstration covers the shared-track segments of the Keishin Line and the Ishiyama–Sakamoto Line, where rail vehicles and road users operate in close proximity.**
These sections present higher operational risks and place a constant psychological burden on drivers, who must balance vigilance for trespassers with strict adherence to schedules. By automating hazard detection, the AI solution aims to reduce operators’ cognitive load and lower the likelihood of collisions with non-rail traffic.

**Strict data-privacy measures govern all video imagery.**
Keihan Holdings, Keihan Electric Railway, BeCore and Various Robotics personnel are the only parties with access to raw footage, and the system forbids facial recognition or extraction of individual images. The project team will share video data externally only if legally required, ensuring compliance with privacy regulations and maintaining public trust in AI technologies.

**The trial runs through the end of March 2026, during which the project team will evaluate system performance metrics such as hazard detection accuracy, false alarm rates, and driver response times.**
If the results meet expectations, the stakeholders plan to expand the AI-based assistance system to other shared-track corridors and potentially to additional segments of the Keihan network.
Prime Minister Takaichi Launches Push for Sustained Wage Growth at Government–Labor–Management Forum
Nov. 27, 2025 | Macroeconomics & Growth

Prime Minister Sanae Takaichi opened the first government–labor–management meeting of her term on November 25, urging cooperation to achieve wage increases in the 2026 spring labor negotiations at levels “not inferior” to the more than 5 percent growth recorded in 2024 and 2025.

**At the relaunch of the tripartite forum established under the Abe administration, Takaichi called on government, business and labor leaders—including Keidanren chairman Yoshinobu Tsutsui, Japan Chamber of Commerce and Industry chairman Ken Kobayashi and Rengo chair Tomoko Yoshino—to link improved corporate performance with higher wages and stronger consumption.**
She set a target for wage gains roughly on par with previous years, despite forecasts of slower corporate performance and a private economist’s projection of a 4.88 percent increase for 2026—the first sub‐5 percent rise in three years. Earlier in the month, during a Diet session, Takaichi had also refrained from commenting on earlier administrations’ ambitions to raise the weighted average minimum wage first to 1,000 yen and later to 1,500 yen, and she acknowledged practical difficulties in meeting such benchmarks.

**Takaichi emphasized the need for sustainable wage growth by presenting measures designed to ensure pay hikes go beyond cost pass‐throughs.**
She proposed optimizing price pass‐through—extending it to government procurement—streamlining transaction processes and supporting growth‐oriented investments by small and micro businesses. The government will incorporate preparations for wage increases into its growth strategy, to be drafted next summer, and revised Corporate Governance Code guidelines will urge firms to boost personnel and research and development expenditures.

**Experts at the meeting stressed that labor shortages constrain Japan’s economic growth and called for labor‐market reforms alongside stronger price‐pass‐through mechanisms from large corporations to small and medium‐sized enterprises.**
The government’s basic economic policy aims to institutionalize wage growth that exceeds price rises by about 1 percent annually through fiscal 2029. Representatives from all three sides agreed on the necessity of continued wage increases, reflecting the policy trajectory initiated under the Abe administration of promoting pay growth through supportive economic measures rather than direct mandates.

**The government announced roughly one trillion yen in economic support measures to help SMEs and small‐scale business operators raise wages through growth investments.**
Takaichi said these funds will underpin sustainable wage growth without simply transferring the burden onto employers and noted that municipal subsidies would further facilitate local-level wage hikes.

**In their responses, Keidanren chairman Tsutsui expressed interest in reinforcing the momentum behind wage growth.**
Chamber chairman Kobayashi voiced concerns about the weak yen’s impact on SMEs through higher import costs and urged attention to exchange‐rate issues. Rengo chair Yoshino confirmed alignment on the goal of exceeding 5 percent wage increases and requested continued government support while opposing any relaxation of work‐hour regulations that could harm worker health and well‐being.

**The supplementary budget for the current fiscal year, expected to receive Cabinet approval shortly after the meeting, incorporates the announced economic measures to support wage increases among SMEs through growth‐oriented investment assistance and municipal subsidy schemes.**

Monitored Intelligence for Japan - Nov. 27, 2025


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Japan fires back at ‘unsubstantiated’ Chinese letter to U.N.

Asahi Shimbun - E | English | News | Nov. 27, 2025 | Geopolitical Conflict and Disputes

Japan has rejected China’s letter to the United Nations that accused Tokyo of threatening military intervention over Taiwan, calling the allegations "inconsistent with the facts and unsubstantiated." Japanese U.N. Ambassador Kazuyuki Yamazaki emphasized Japan's policy of "passive defense," countering China's assertion that Japan would exercise self-defense rights absent an armed attack.

The letter from China’s U.N. Ambassador Fu Cong accused Japanese Prime Minister Sanae Takaichi of violating international law and diplomatic norms following her statements that a Chinese attack on Taiwan could provoke a Japanese military response. Fu’s letter represents the strongest official Chinese criticism of Takaichi since she assumed office last month and highlights escalating tensions between the two countries, including damage to trade relations and cancellations of Japanese cultural events in China.

Prime Minister Takaichi reportedly held a phone call with U.S. President Donald Trump, during which Trump encouraged open communication and discussed the current state of U.S.-China relations, including a recent call between Trump and Chinese President Xi Jinping. Trump has not publicly addressed the Japan-China dispute, a situation seen as potentially troubling by Tokyo officials.

China claims Taiwan, located roughly 100 kilometers from Japanese territory, and has not ruled out military action to assert control. Taiwan's government rejects these claims and insists that its future should be determined solely by its people.

INTERVIEW: No Need for Japan's Takaichi to Back Off over Taiwan

Nippon | English | News | Nov. 27, 2025 | Geopolitical Conflict and Disputes

Japanese Prime Minister Sanae Takaichi does not need to retreat from her recent statements regarding a potential contingency over Taiwan, despite increased tensions between Japan and China. Kenneth Weinstein, Japan chair at the U.S. think tank Hudson Institute, emphasized that backing off is not a sensible option.

Weinstein described the issue as part of a broader national security strategy debate in Japan, rather than just a matter about Taiwan. He noted that Japan faces a no-win situation where it cannot afford to back down and must continue to advance its security posture.

Earlier in November, Takaichi commented that a Taiwan contingency could pose a threat to Japan’s survival, which would justify Japan exercising its right to collective self-defense.

ガソリン減税法案が衆院通過 今国会成立の公算、年内実施へ

Gasoline Tax Reduction Bill Passes House of Representatives, Likely to Be Enacted in This Diet Session and Implemented Within the Year

Nikkei | Local Language | News | Nov. 27, 2025 | Regulation

The House of Representatives passed a gasoline tax reduction bill on November 25, and it is expected to be enacted in the current Diet session. The bill abolishes the old provisional tax rate of 25.1 yen per liter on gasoline effective December 31, 2025, and will eliminate the 17.1 yen per liter provisional tax rate on diesel starting April 1, 2026. The bill was initially submitted in August by seven opposition parties and later amended after an agreement among six major parties to set the implementation date at the end of the year.

To prevent sudden price shocks resulting from the tax cuts, the government has been incrementally increasing gasoline subsidies by 5 yen every two weeks, raising subsidies from 10 yen to 15 yen per liter on November 13 and planning to increase them to 20 yen on November 27, with a final adjustment by December 11 to match the tax surcharge. Diesel subsidies are being raised similarly to maintain market stability.

The tax reductions will result in an estimated revenue loss of 1.5 trillion yen for both national and local governments. The ruling and opposition parties plan to identify alternative stable funding sources within the year, focusing on expenditure cuts, revision or abolition of corporate tax special measures, and increased burdens on very high-income earners. Additional funding measures will be decided within about a year, with attention to preserving road infrastructure and aligning with CO2 reduction targets.

The provisional gasoline tax rate was introduced in 1974 to finance road construction and converted into general revenue in 2009 but has remained effectively as a temporary tax until now.

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