Japan

Nippon | English | News | Dec. 5, 2025 | Regulation

Japan’s government and ruling coalition, including the Liberal Democratic Party and the Japan Innovation Party, are considering a two-year suspension of the environmental performance tax on automobiles. This move aims to stimulate domestic vehicle demand amid challenges faced by the Japanese auto industry due to high tariffs imposed by the U.S. administration under former President Donald Trump.

The tax, which varies based on a vehicle’s fuel efficiency and can be as high as 3% of the purchase price, is levied on automobile buyers and has faced calls for abolition from the industry. Prime Minister Sanae Takaichi, who won the LDP leadership election earlier this year, pledged to suspend this local tax for two years in response to the impact of U.S. tariffs. The tax freeze is expected to be included in the fiscal 2026 tax system reform program, following discussions planned for later this year.

Asahi Shimbun - E | English | News | Dec. 5, 2025 | Geopolitical Conflict and Disputes

China’s military sometimes conducts simulated attacks on foreign naval vessels transiting the Taiwan Strait, according to Tsai Ming-yen, director-general of Taiwan’s National Security Bureau. Taiwan monitors these activities through an extensive radar and surveillance network and shares intelligence with international partners operating in the strait. The Taiwan Strait is a crucial trade route, with about half of global container ships passing through, and China claims sovereignty over it, while the United States and Taiwan maintain it is an international waterway.

This year, navies from eight countries, including Britain, France, New Zealand, and the United States, have made a total of 12 trips through the strait. China’s forces routinely shadow these ships and sometimes deploy air forces to simulate attacks, asserting their military presence. Taiwan’s intelligence sharing helps foreign navies better understand typical Chinese military patterns during their missions in the area. Vietnam’s navy was among those that transited the strait this year.

China conducts almost daily military operations around Taiwan, which Taipei regards as harassment aimed at pressuring the government and military. China’s last named war game was “Strait Thunder-2025” in April, and Taiwan noted increased Chinese military activity since December 2024. The final quarter of the year is typically busy for Chinese drills, with four Chinese naval groups currently operating in the Western Pacific. Taipei continues to monitor whether upcoming exercises will target Taiwan specifically.

Amazon Rufusが示す「消費と生成AI」の新たな関係－消費への生成AIの浸透がもたらす「期待」と「リスク」（１）

NLI Research Institute | Local Language | AcademicThink | Dec. 5, 2025 | UndeterminedTech Development/Adoption

In July 2025, Amazon launched Amazon Rufus, an AI shopping assistant in Japan designed to help consumers compare and select products. This introduction marks a significant development in the integration of generative AI into consumer behavior and consumption patterns. Amid ongoing economic challenges such as persistent high prices and uncertainty, consumers are increasingly leveraging technologies like price-comparison applications and AI recommendations to optimize their spending decisions.

As of 2025, generative AI in Japan is still primarily used as a tool for information lookup, according to a Ministry of Internal Affairs and Communications survey. However, AI assistants like Rufus are expected to enhance consumer convenience by supporting decision-making processes more directly at points of purchase. While this proximity to consumer behavior presents benefits in terms of convenience and optimization, it also introduces new risks that require careful consideration from the perspective of consumer behavior and market dynamics.

Amazon Rufus represents a shift from conventional generative AI by specializing in the shopping context through conversational support functions such as search, comparison, and question-and-answer formats. It also benefits from specialized training data and architecture optimized for e-commerce applications. Moving forward, 2026 is anticipated to be a pivotal year when AI's influence on consumption behavior intensifies, with consumers seeking "smarter consumption" aided by these evolving technologies.

The report emphasizes the need to analyze how deeply consumers will entrust AI with their consumption decisions and to understand the balance between the expected convenience and the emerging risks. The broader implications for everyday life and consumer engagement with AI assistants remain a critical focus area for further study.