Press Conference by Minister Muto (Excerpt)

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

10:16-10:26 a.m.
Tuesday, October 21, 2025
Press Conference Room, METI Main Building

Opening Remarks

Looking back on my term in office

Since my appointment last October, I have spent the past year addressing various challenges with a focus on advancing policies.

To realize a “growth-oriented economy driven by wage increases and investment,” we have worked to promote domestic investment in the field of digital transformation (DX), including the establishment of the “Framework for Strengthening the AI and Semiconductor Industrial Infrastructure,” the amendment to the Act on Facilitation of Information Processing, and the thorough implementation of passing costs through to prices and fair trade practices through the amendments to the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors and the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises, in order to secure resources for wage increases for small and medium-sized enterprises.

As electricity demand will continue to grow in the future, we have advanced realistic energy policies while aiming to balance ambitious decarbonization goals with economic growth. In the Seventh Strategic Energy Plan, we set forth a policy to make maximum use of both renewable energy and nuclear power. We also formulated the GX2040 Vision and amended the Act on Promotion of Smooth Transition to a Decarbonized, Growth-Oriented Economic Structure (GX Promotion Act) to present a path toward regional revitalization and strengthening industrial competitiveness.

In response to the U.S. tariff measures, the Ministry of Economy, Trade and Industry (METI), including myself, conducted approximately 7,000 briefings and dialogues with industry stakeholders. We also held seven meetings of the internal task force and implemented relevant support measures, such as establishing consultation services and assisting small and medium-sized enterprises with financing and business enhancement.

Regarding Expo 2025 Osaka, Kansai, although we faced various challenges, thanks to the cooperation of many people, we were able to achieve great success, with a cumulative total of approximately 29 million visitors, including Expo affiliates.

I have visited Fukushima 35 times in total, including three times as Minister and during my time as State Minister. I have consistently stayed close to the frontlines and addressed various challenges, such as decommissioning, lifting evacuation orders in restricted areas, and advancing the revitalization of livelihoods and industries.

Together with many METI staff members, I have faced and addressed essential challenges head-on. I believe we have been able to advance policies in various areas. I am grateful for the guidance and support I have received from everyone. I hope that my successor will continue to move policies forward in order to further strengthen the Japanese economy.

Question-and-Answer Session

Response to Russian energy

Q: I have one question regarding energy. On the 15th, U.S. Treasury Secretary Bessent stated that the topic of expectations for Japan to halt imports of Russian energy was discussed at the Japan-U.S. Finance Ministers’ meeting. Currently, Russian LNG accounts for 9% of Japan’s LNG imports, and Japan continues to hold interests in the Sakhalin-II project. How does the Japanese government intend to respond to the U.S. expectations?

A: I am aware of the remarks by Mr. Scott Bessent, U.S. Secretary of the Treasury. While I will refrain from commenting on each statement made by officials of other governments, since Russia’s aggression against Ukraine, Japan has steadily reduced its dependence on Russian energy. However, LNG from Sakhalin-II accounts for approximately 10% of Japan’s LNG imports, which corresponds to about 3% of total power generation. We recognize this as playing an extremely important role in Japan’s energy security. Additionally, in the Asian LNG market, supply-demand conditions are expected to remain tight for the time being, and rising procurement costs can lead to higher electricity charges. Taking these factors into account, appropriate responses are required. As for specific measures Japan may take, we intend to respond appropriately, in close coordination with the international community, including the G7, while carefully considering what is necessary to safeguard Japan’s national interests.

China’s rare earth export restrictions

Q: On October 9, the Chinese government announced its policy to strengthen export controls on rare earths and related technologies. There are growing concerns about the impact on global supply chains. Could you share your current understanding of how this may affect the Japanese economy and Japan’s economic security?

A: As you pointed out, on Thursday, October 9, the Chinese government added five rare earth items, related technologies, and lithium batteries, previously not subject to export controls, to its export control list. It also announced new regulations concerning the export of Chinese-origin rare earths to third countries. I am aware of these developments. The rare earths and other items subject to these new restrictions are critical items used across a wide range of industries in Japan. We are currently working with industry stakeholders to assess the potential impact. We are deeply concerned that these restrictions may further affect supply chains not only in Japan but also in like-minded countries. We have previously urged the Chinese side to implement export controls appropriately, considering the impact on people’s livelihoods. Regarding the new measures as well, we intend to continue registering various appeals in coordination with relevant countries.

U.S.-Australia agreement on rare earths

Q: I have a question regarding rare earths. According to media reports, President Trump met with the Australian Prime Minister on the 20th and signed an agreement on rare earths. Some reports also suggest that Japan may participate in part of the project. In light of the current situation with China, could you please explain once again how Japan intends to engage in this field?

A: I am aware of the media reports, but I will refrain from commenting on specific cooperation between third countries. As a general principle, we believe that working with like-minded countries, including the United States and Australia, to ensure a stable supply of critical minerals is extremely important. From this perspective, for example, Sojitz Corporation and the Japan Organization for Metals and Energy Security (JOGMEC) have already announced their participation through investment in a gallium production project in Western Australia. We understand that both the Australian and U.S. governments are also considering participation through investment and other forms of involvement. We intend to continue working in this field, not only through this project but also in coordination with like-minded countries.