Sanae Takaichi: Japan’s First Female PM Faces Political & Economic Shockwaves

Sanae Takaichi wins LDP race, poised to be Japan's first female prime minister. The conservative's Abenomics advocacy & nationalist views may jolt markets & China ties.

The Iron Lady of the East: Sanae Takaichi Set to Become Japan’s First Female Prime Minister

TOKYO, Japan—In a dramatic victory, Sanae Takaichi has emerged from a heavily male-dominated field to win the leadership of Japan's ruling Liberal Democratic Party (LDP), positioning her to become the nation's first female prime minister. Takaichi's rise is a historic milestone, yet her conservative, nationalist platform is poised to create significant ripples both domestically and across the Asia-Pacific region.

Inspired by her hero, former British Prime Minister Margaret Thatcher, Takaichi, a former economic security and interior minister, acknowledged the weight of the moment: "Rather than being happy, I feel like the tough work starts here." Her success comes despite a political environment where women comprise only about 15% of the powerful lower house of parliament.

Nationalist Stance and Geopolitical Tensions

The new leader’s nationalistic bent, which includes being a regular visitor to the controversial Yasukuni shrine (honoring Japan's war dead) and a desire to revise Japan's pacifist postwar constitution, is likely to complicate foreign relations.

A self-described "noise-maker" and protégé of the late Shinzo Abe, Takaichi has been a staunch China hawk, even suggesting that Japan could form a "quasi-security alliance" with Taiwan. Her first diplomatic test will be hosting U.S. President Donald Trump later this month, a meeting that may see her push to redo an existing investment deal to secure better terms for Japan.

Abenomics Advocate and Domestic Policy

On the economic front, Takaichi has pledged to continue the aggressive fiscal stimulus policies, known as "Abenomics." Advocating for higher government spending and tax cuts to combat rising costs, her approach is a distinct departure from fiscal caution and may cause "shockwaves" for investors concerned about the national debt. She has also openly criticized the Bank of Japan’s recent decision to raise interest rates.

Despite becoming the first Japanese female prime minister, Takaichi is not a champion of progressive social change. She staunchly opposes legalizing same-sex marriage and allowing married couples to have separate surnames, arguing against moves she believes "undermine traditional family values." This social conservatism, which contrasts with broad public support for such changes, highlights the internal tension within the LDP.

Additionally, she has appealed to populist sentiment amid rising migration and tourism, having recently called for a crackdown on "badly behaved foreigners" in her native Nara—a sentiment that resonates with a segment of the voter base seeking greater immigration restrictions.

Now, Sanae Takaichi must seek parliamentary approval to formally replace the outgoing Shigeru Ishiba, though this is expected. She inherits an LDP that has recently lost its coalition majority in both houses, meaning she will need to quickly unite the party and secure cooperation to effectively govern. Her mandate is clear: to deliver a "strong and prosperous Japan" built on conservative principles and aggressive economic action.