Japan

Nippon | English | News | Jan. 23, 2026 | Geopolitical Conflict and Disputes

Japan's Chief Cabinet Secretary Minoru Kihara described alleged espionage involving a former employee of Russia's trade representation in Japan as "regrettable." The individual was referred to Japanese prosecutors on suspicion of illegally obtaining trade secrets from a Japanese machine tool manufacturer, in violation of the unfair competition prevention law.

The Foreign Ministry communicated Japan's position on the incident to Russia. Kihara emphasized the importance of strictly addressing foreign agency activities to protect national interests and the safety of Japanese citizens. He also highlighted the need to enact legislation against espionage, as outlined in the coalition agreement between the ruling Liberal Democratic Party and the Japan Innovation Party.

米国経済見通し 犠牲になるのは財政

Daiwa Institute of Research | Local Language | AcademicThink | Jan. 23, 2026 | UndeterminedBudgets-Budgeting

The U.S. economy is showing signs of recovery from the negative impacts of the recent government shutdown on both corporations and households, maintaining a firm hold. However, widening disparities within households could intensify due to the "K-shaped economy," as higher-income individuals benefit from federal income tax refunds under the 2025 Trump Tax Cut 2.0 beginning February 2026, while low- and middle-income groups face declining purchasing power following the expiration of Obamacare’s enhanced tax credits at the end of 2025, resulting in increased health insurance premiums.

Congressional debates over extending these tax credits have complicated the fiscal 2026 budget process. Democrats have made extending the tax credits a condition for budget approval, whereas Republicans have signaled reluctance for full extension, preferring a continuing resolution to delay decisions. This deadlock caused the longest government shutdown on record in October–November 2025. A continuing resolution passed in mid-November prolonged the debate, which gained momentum in early 2026. The House approved a three-year extension plan in January with Democratic leadership and support from 17 Republicans, particularly those in competitive districts, but the Senate Republicans remain cautious, leaving the bill’s future uncertain.

Criticism of the tax credit extension centers on the belief that the credits serve as subsidies to private insurers and would increase the federal deficit. The House-passed three-year extension would raise the fiscal deficit by about $80 billion over ten years, potentially increasing to $350 billion if made permanent. While extension would relieve financial pressure on low- and middle-income households, concerns persist that deteriorating fiscal conditions amid uncertain tariff revenues could elevate the term premium and push up U.S. 10-year Treasury yields. This rise in yields could negatively impact interest-rate-sensitive sectors such as capital investment, housing, and durable goods consumption.

外国人への訪問支援費補助 共生実現、自治体に入管庁

Tokyo Shimbun | Local Language | News | Jan. 23, 2026 | UndeterminedPolitical Policy Resistance

The Immigration Services Agency will launch a grant program to subsidize outreach activities where municipal counselors visit locations with high concentrations of foreigners, such as apartment complexes and companies employing many foreign workers. This initiative, included in the FY2025 supplementary budget, aims to promote community coexistence by proactively addressing issues faced by foreigners through direct engagement.

In addition to existing support for consultation offices, outreach visits may extend to Japanese language schools and restaurants, where counselors will provide guidance on daily life matters such as garbage disposal rules and Japanese social systems. The program may also utilize social networking sites and involve foreign community leaders to improve communication and support. Foreigners serving as interpreters could participate as counselors alongside municipal employees.

The Immigration Services Agency plans to notify municipalities of the grant details soon, aligning the initiative with the government’s comprehensive measures on foreigner acceptance expected in early 2026.