Japan under the leadership of Prime Minister Takaichi: Institutional diplomacy as a new strategic axis

CPTPP – The Pillar of Japan’s soft power

Just a few days after the inauguration, Prime Minister (PM) Takaichi has released a directive to cabinet members emphasizing “proactive diplomacy” and a “systematic approach to security and institutional policy.” According to observers in Tokyo, this marked the transition from Kishida’s “flexible response” approach to a new phase of “rule-making”, in which Japan seeks not only to participate in but also to lead the process of shaping global norms.

Kyodo reported that PM Takaichi regards the maintenance of a rules-based international order as “a top strategic priority.” She has instructed the Ministry of Foreign Affairs to coordinate closely with economic ministries to ensure that trade and investment agreements align with national security interests. Put simply, Tokyo is laying the groundwork for an “industrial-institutional diplomacy”, in which the economy serves as a tool for shaping influence.

One of the clearest symbols of this policy is Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Under previous administrations, Japan became the “anchor state” sustaining the agreement after the United States withdrew in 2017. As of now, according to Nikkei Asia, 11 countries have joined, and more than 10 other economies – including the United Kingdom, South Korea, Thailand and Taiwan – have expressed interest in accession.

Tokyo takes this as an opportunity not only to expand its economic influence but also to “align values” – promoting trade rules grounded in transparency, freedom and fairness. A Ministry of Foreign Affairs official, quoted by Nikkei, remarked: “If the rules are shaped by Japanese standards, that would be the most enduring form of soft power.”

Beyond trade, Japan is pushing to set standards in energy transition, artificial intelligence, and supply chains – areas at the heart of U.S. – China competition. Reuters notes that Tokyo currently leads around 18 multilateral initiatives on supply-chain resilience and green technology across the Indo-Pacific.

Alongside the CPTPP, Japan continues to play an active role in G7 and the United Nations – two key arenas that reinforce its institutional influence. Under Takaichi’s leadership, Tokyo is expected to sustain momentum for reforming the UN Security Council, where Japan, together with Germany, India, and Brazil (the G4 group), has long advocated expanding permanent representation.

Within the G7, Japan has prioritized two core areas: the digital economy and energy security. Experts from the Japan Economic Research Institute (JERI) note that Takaichi’s emphasis on “technological autonomy” and “value-based cooperation” reflects Tokyo’s effort to shape a trust-based trade network — a new, institutionalized form of “economic security.”

Notably, Japan’s approach remains flexible. Rather than confrontation, Tokyo opts for “institutional binding” — using trade rules and technical standards to attract partners, including those with differing political views. This strategy allows Japan to expand its influence without being perceived as adversarial.

Normative Competition — Beyond the Great Powers

A new aspect of Prime Minister Takaichi’s foreign policy is the expansion of diplomacy from the governmental to the societal level. Japan plans to reform its visa policies, develop international human resources, and promote people-to-people exchanges to project the image of an “open yet orderly” society. This marks part of Japan’s emerging concept of “citizen-centered diplomacy,” increasingly emphasized in recent policy documents.

As reported by Kyodo, a government adviser remarked: “If diplomacy remains confined to the negotiation table, it loses vitality. The new administration wants every Japanese citizen — at home or abroad — to feel the tangible benefits of its foreign policy.”

Amid intensifying U.S.–China rivalry, Japan has opted for a middle path — not as a “spearhead,” but as a “designer of the playing field.” Its efforts to reinforce multilateral trade systems, expand the CPTPP, and sustain cooperation within the G7 reflect Tokyo’s ambition to serve as a balancing architect — a stabilizing pillar in the Indo-Pacific region.

Analysts from Nikkei summarize Prime Minister Takaichi’s strategy in three words: “Connectivity – Norms – Influence.” Through an institutional network, Japan seeks not only to strengthen its economic power but also to reshape global standards for trade, technology, and sustainable development.

However, the path ahead is hardly without challenges. The ongoing contest over technological standards among the U.S., China, and the European Union forces Japan to cooperate while preserving strategic autonomy. At the same time, an aging population and slow growth require the Takaichi administration to translate institutional initiatives into tangible public benefits — a task that eluded previous governments.

Japan’s middle-ground position offers flexibility, but it also demands a delicate balance among major powers. In a rapidly shifting international environment, maintaining domestic institutional stability is proving just as vital as upholding global commitments.

As the world enters a “post-globalization” era — where supply chains, technology, and legal frameworks have become instruments of power — Japan’s long-standing respect for rules and cooperative spirit gives it a natural advantage as an institutional architect.

Prime Minister Sanae Takaichi’s government seems to recognize this well. Rather than racing for dominance, Tokyo has chosen a quieter, steadier path — one built on trade frameworks, the rule of law, and human connection. In doing so, Japan is gradually redefining its place in the world: not merely as a participant in the international order, but as one of its authors.