Japan's PM Takaichi bets $2.3 trillion on industrial policy to revive growth

Japanese Prime Minister Sanae Takaichi is pursuing a $2.3 trillion industrial policy initiative aimed at reviving the country's long-stagnant economic growth, according to Nikkei Asia. The plan represents one of the most ambitious state-led investment pushes in Japan's recent history.

The strategy centers on channeling large-scale public and private investment into strategic sectors such as semiconductors, energy, and advanced manufacturing. Supporters argue the approach could help Japan compete with China and the United States in critical industries, while critics question whether the spending will translate into lasting productivity gains.

The initiative comes as Japan continues to grapple with an aging population and sluggish wage growth. Economists say the plan's success will hinge on execution and whether it can attract sustained private-sector investment alongside government spending.