Japan's Prime Minister, Sanae Takaichi, secured a historic landslide victory in the recent election, promising tax cuts and increased military spending. The conservative leader, inspired by Margaret Thatcher, is projected to secure a significant majority in the lower house of Japan's parliament, with her Liberal Democratic Party (LDP) potentially winning up to 328 seats. This election win comes as a surprise, as the LDP had lost control of both houses just 15 months prior under her predecessor, Shigeru Ishiba. Takaichi's personal approval ratings and her ability to connect with younger voters have been key to her success. She has also sparked a 'sanakatsu' craze, with her handbag and pen becoming popular items. However, her policies have caused concern among financial markets and China. The promised tax cuts have rattled investors, and her emphasis on security and military spending has strained ties with China, leading to a major dispute over Tokyo's potential response to a Chinese attack on Taiwan. Despite these controversies, Takaichi's victory has been welcomed by the business community and the US, with President Trump offering his 'total endorsement' and a White House visit. The election result will be closely watched by China, which has already responded with countermeasures, and by Japan's Defence Minister, who aims to strengthen the country's defense while pursuing dialogue with China.
