Press Conference by Minister Akazawa (Excerpt)

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

8:35-8:44 a.m.
Friday, February 27, 2026
In front of the Cabinet Room, 2nd Floor, National Diet Building

Opening Remarks

Investment in Rapidus Corporation

As of yesterday, the Government of Japan and private companies have invested a total of 267.6 billion yen in Rapidus Corporation. I understand that the breakdown of the investment consists of 100 billion yen from the Government of Japan through the Information-technology Promotion Agency, Japan, and a total of 167.6 billion yen from 32 companies, mainly the private companies. Private investment exceeds the 130 billion yen that was expected as of November last year, and I recognize that expectations for Rapidus are growing within the private sector as well. This project, which constitutes the core of the growth investment promoted by Government of Japan, is a national endeavor that cannot afford to fail as it could jeopardize the country’s national interests. The Ministry of Economy, Trade and Industry will continue to exert maximum effort to lead the project to success. The administrative staff will provide further details.

Price Negotiation Promotion Month

March is Price Negotiation Promotion Month. We hold this in March and September every year. This March marks the first Price Negotiation Promotion Month since the enforcement of the Act on the Optimization of Transactions for Small and Medium-sized Entrusted Business Operators and the Act on Promotion of Entrusted Small and Medium-sized Businesses, which includes provisions prohibiting unilateral price determination without consultation. I would like to ask small and medium enterprises on the order-receiving side to seize this opportunity and proactively propose price negotiations with their order-placing contracting companies and to request that order-placing companies give due consideration to this matter, including by holding discussions in good faith. I would also like to ask national government agencies and local governments to take thorough measures in response to rising prices, such as implementing price adjustment measures and introducing and appropriately utilizing the low-bidding price investigation system. METI will also work to thoroughly ensure price pass-throughs and fair transaction practices, including for public procurement, by steadily enforcing the Act on the Optimization of Transactions for Small and Medium-sized Entrusted Business Operators and the Act on Promotion of Entrusted Small and Medium-sized Businesses and publishing a list of price negotiation statuses and pass-through figures for each order-placing company.

Question-and-Answer Session

New U.S. tariff measures

Q: I would like to ask you about U.S. tariffs. On February 24, the United States imposed new 10% tariffs on all countries and regions. You recently requested the United States to ensure that, based on the agreement with the United States, Japan would not be treated less favorably by the new tariffs. How has the negotiations with the United States progressed since then? Also, how are you currently examining the new tariffs?

A: First of all, as this is a measure taken by the United States in response to the content of the Supreme Court ruling, we will thoroughly examine the content of the ruling and the impact of the measure, and will continue to strictly monitor related developments, including the response of the U.S. government, and the impact on the agreement between Japan and the United States. As you just mentioned, on Monday, February 23, I held an online meeting with Secretary of Commerce Lutnick and, as the U.S. government takes these new tariff measures, that Japan not be treated less favorably than last year’s agreement between Japan and the United States. Furthermore, the addition of the 10% tariff could result in additional tariff burden for certain items for which the tariff was previously capped at 15% on a non-stacking basis under last year’s Japan-U.S. agreement. Therefore, we will continue to coordinate with the United States so that Japan would not be treated less favorably than last year’s agreement between Japan and the United States.

China’s ban on exports

Q: I would like to ask you about China's ban on exports. On February 24, China's Ministry of Commerce placed 20 Japanese companies and organizations related to dual-use exports in the defense, aerospace, and space industries on an export control list, effective immediately as of that date, and also placed 20 companies and organizations, including Subaru Corporation and TDK Corporation, on ​​a watch list, tightening export screening. There are many unclear points, such as whether rare earths are included in the targeted items, and so how do you analyze the content and impact of China's measures, and what measures do you intend to take?

A: Before the measures taken by China on February 24 that you mentioned, there were export control measures targeted only at Japan, announced by China’s Ministry of Commerce on January 6. These export control measures by China are entirely unacceptable, as they specifically target Japan and deviate significantly from international practices. We have lodged a stern protest and continue to demand the immediate withdrawal of these measures. Furthermore, on February 24, the two lists you just mentioned, the export control list and the watch list, were announced by China, and for the same reasons, these measures are also completely unacceptable and extremely regrettable. Therefore, the Government of Japan, including METI, has strongly protested and is calling for the withdrawal of these measures. The details of these measures are still unclear, but we would like to continue to closely monitor China's response and its impact on Japan's industry. In any case, from the perspective of economic security, we will work to build resilient supply chains that do not rely excessively on any one country for important materials.

Investment in Rapidus Corporation

Q: Regarding what you mentioned at the beginning, I would like to ask you about the investment in Rapidus Corporation by the Government of Japan. Could you share the Government of Japan’s intentions in becoming a shareholder of Rapidus and its shareholding percentage with us? Could you also share your thoughts on how the government, as the largest shareholder, intends to approach its relationship with Rapidus going forward?

A: As reported by the press, the Government of Japan and private companies have invested a total of 267.6 billion yen in Lapidus Corporation as of yesterday. The Rapidus project, which constitutes the core of the growth investment promoted by the Government of Japan, is a national endeavor that cannot afford to fail as it could jeopardize the country’s national interests. The idea is that the Government of Japan made the investment in order to take a step forward and provide strong support. Specifically, based on the implementation plan for Rapidus selected last year, the Government of Japan invested 100 billion yen through the Information-technology Promotion Agency, Japan (IPA), which means that IPA acquired 11.5% of the voting rights. Private investment exceeds the 130 billion yen that was expected as of November last year, and I recognize that the private sector also has high expectations for Rapidus. METI, while monitoring the progress of the project plan, including with the participation of external experts, will continue to exert maximum effort to lead the project to success.

New U.S. tariff measures

Q: I would like to ask you about the U.S. tariffs that were mentioned earlier. U.S. Trade Representative Jamieson Greer mentioned that the tariffs could be raised from 10% to 15% if necessary. To the extent that you are aware of, could you share what impact this will have in the future?

A: The details are still under negotiation, and as always, there is a lot of criticism and reporting before diplomatic negotiations are concluded. All I can say at this point is that I believe U.S. Trade Representative Greer said something to the effect that, at least for countries where a deal is already in place, they are not seeking a settlement that differs from the content of that agreement. Although figures like 10% or 15% are arbitrarily emerging as the focus of discussion figures, I personally want to ensure that the final settlement will be in strict accordance with the Japan-U.S. tariff agreement that we reached. Until we achieve that goal, we will continue to do everything in our power to ensure that Japanese companies and the Japanese economy are not adversely affected in any way.