Press Conference by Minister Muto (Excerpt)

*Note: This is a provisional translation for reference purposes only.

12:10-12:26 p.m.
Friday, August 29, 2025
Press Conference Room, METI Main Building

Opening Remarks

Ministerial Meeting on Nuclear Power

Today, we held a Ministerial Meeting on Nuclear Power. It was confirmed that the Government of Japan as a whole will work together to promote the understanding of local communities of the restart of the Kashiwazaki-Kariwa Nuclear Power Station in Niigata Prefecture, taking into account concerns related to TEPCO restarting the station for the first time since the accident, as well as requests regarding evacuation and regional development. Specific initiatives include further improving and enhancing the nuclear emergency preparedness and response system, such as promoting the development of evacuation routes, strengthening TEPCO's internal systems, and establishing a team to strengthen operational monitoring at the Kashiwazaki-Kariwa Nuclear Power Station, headed by a Deputy Chief Cabinet Secretary. Furthermore, the relevant ministries and agencies will work together to enhance regional development, including infrastructure development and industrial promotion, based on local requests. Please ask the administrative staff for more details.

Price Negotiation Promotion Month

September is the Price Negotiation Promotion Month. In order to achieve continuous wage increases and a growth-oriented economy, it is necessary to secure funds, and further price pass-through implementation and fair transaction practices are important. I will take this opportunity to send a video message. In this video message, I will urge order-placing companies to continue their efforts for fair transaction practices across all supply chains, even in the face of the U.S. tariff measures. I will also encourage the national and local governments to proactively conduct price negotiations and implement price pass-throughs, and urge order-receiving small and medium enterprises to proactively request price negotiations with order-placing companies.

In addition, it will be prohibited to determine prices by refusing consultations by the laws newly named as the Act Against Delay in Payment of Fees, etc. to Small and Medium-sized Entrusted Business Operators in Manufacturing and Other Specified Fields. In addition, the Act on Promotion of Entrusted Small and Medium-sized Enterprises will come into effect on January 1 of next year. We are currently holding information sessions on the details of the amendments, and we are encouraging relevant companies to participate. For more details, please see the Small and Medium Enterprise Agency website.

Budgetary request for FY2026 and Tax System Reform Request

Today, we will submit our budgetary request for FY2026 and tax system reform request. Due in part to the impact of U.S. tariffs, the Japanese economy faces downside risks in terms of wage increases and domestic investment. For this reason, the budgetary request calls for increased funding for intensive investment support in areas such as Green Transformation (GX), Digital Transformation (DX), quantum and space, continued wage increases and strengthening growth potential for small and medium enterprises, and support for exports to the Global South and business transformation for automobile suppliers in light of the impact of U.S. tariffs. We will also review public procurement transactions and work to secure a budget to cover the increase in labor costs related to building maintenance at the Ministry of Economy, Trade and Industry.

Regarding the tax system, we are requesting a review of the research and development tax system and the automobile tax system to revitalize the domestic market, the establishment of a well-balanced tax system to expand investment in strategic technology areas, and the creation of a bold investment promotion tax system., Please ask the administrative staff for more details.

Question-and-Answer Session

Corporate Consortium including Mitsubishi Corporation Withdraws from Offshore Wind Power Generation Projects

Q: Recently, a corporate consortium including Mitsubishi Corporation announced that it would withdraw from offshore wind power generation projects, including those off the coast of Chiba Prefecture, for which it had won a bid in 2021 in a government public tender process. President Nakanishi reported the matter to the Minister of Economy, Trade and Industry on the same day, and yesterday he also visited the Governor of Chiba Prefecture to offer his apology. When you met with President Nakanishi, you conveyed your thoughts to him, but I would be grateful if I could ask you to comment on the withdrawal. Also, please tell us about the impact the withdrawal will have on future energy policies, such as making renewable energy the main power source.

A: Offshore wind power is truly an important power source in making renewable energy the main power source for Japan. It is quite regrettable that the first project initiated to achieve the goal has ended in this way. In addition to its importance in terms of Japan's energy policy, there have been great expectations from the local communities, which have provided a great deal of cooperation. Furthermore, some investments have already begun, and I believe that the consequences for abandoning them mid-process will be severe. As a company representing Japan, I expect Mitsubishi Corporation to take its responsibility seriously and to respond to the local people with the utmost sincerity.

Going forward, the Government of Japan must thoroughly verify the factors that led to Mitsubishi Corporation's withdrawal. In addition, we will promptly consider announcing a public call for the three domestic sea areas from which Mitsubishi Corporation withdrew, taking into account the intentions of the local communities. Furthermore, we intend to continue improving the business environment, including reviewing necessary systems, so that offshore wind power generation projects can be steadily implemented even amid a changing business environment. While taking these necessary measures, we will continue to work steadily to achieve the goal of introducing approximately 40 to 50 percent renewable energy, including offshore wind power, by FY2040.

Actions to address the U.S. tariff policy

Q: I would like to ask a question about tariffs imposed by the U.S. Trump Administration. A visit to the U.S. by Mr. Akazawa Ryosei, Minister in Charge of Economic Revitalization, was suddenly canceled yesterday, and it remains uncertain when automobile tariffs will be lowered. It has been about a month since the reciprocal tariff was set at 15%, and you recently held an opinion exchange. I would like to ask about your current thoughts on the impact on domestic industries in the future and additional support measures.

A: As I explained at my last press conference, following the Japan-U.S. agreement, Prime Minister Ishiba has instructed METI to proactively visit regional areas and industry associations to provide detailed explanations and engage in dialogue. In response to this, we are intensively holding opinion exchange meetings and briefing sessions during August. I held an opinion exchange meeting in Gifu Prefecture, while State Ministers Ogushi and Koga held opinion exchange meetings in Hyogo and Nagasaki prefectures, respectively. Through the exchange of opinions in those meetings, we have heard about concerns about both the impact of tariffs and, proactive efforts to turn challenges into opportunities. I feel the need to provide support tailored to each business operator, and next week we plan to hold the Seventh Task Force for U.S. Tariffs. We will collect these opinions and discuss the analysis of the impact and the suggestions that have been obtained. Based on these, we will work out the specifics of additional necessary measures.