Soft-spoken consensus builder Kishida to become Japan’s next PM after party vote

World15 minutes ago (Sep 29, 2021 02:36AM ET)

(C) Reuters. FILE PHOTO: Candidates for the presidential election of the ruling Liberal Democratic Party pose with papers with their sign and words prior to a debate session held by Japan National Press Club September 18, 2021 in Tokyo, Japan. The contenders are (L to


By Antoni Slodkowski and Ju-min Park

TOKYO (Reuters) -Former foreign minister Fumio Kishida won a ruling Liberal Democratic Party (LDP) leadership race on Wednesday, a victory that virtually ensures he will succeed Yoshihide Suga as prime minister within days.

Kishida enjoys only moderate public support and has a bland image and his victory could spell problems for the LDP in a general election due within weeks.

Kishida defeated former defence and foreign minister Taro Kono, seen as an outspoken maverick, in a second round run-off vote. Two female contenders, Sanae Takaichi, 60, and Seiko Noda, 61, dropped out after the first round.

The winner of the party poll to succeed unpopular Prime Minister Suga, who is not seeking re-election after just one year in office, is almost certain to become premier because of its majority in parliament’s lower house.

Kishida must call an election by Nov. 28 and faces the task of rebuilding an economy staggering from the COVID-19 pandemic, but his consensus style will help him consolidate power within the factious ruling party.

Kishida’s victory is unlikely to trigger a huge shift in policies as Japan seeks to cope with an assertive China and revive an economy hit by the pandemic, with the soft-spoken MP highlighting the need to focus on reducing income disparity.

He shares a broad consensus on the need to boost Japan’s defences and strengthen security ties with the United States and other partners including the QUAD grouping of Japan, the United States, Australia and India, while preserving vital economic ties with China and holding regular summit meetings.

Specifically, Kishida wants to beef up Japan’s coast guard and backs passing of a resolution condemning China’s treatment of members of the Uyghur minority. He wants to appoint a prime ministerial aide to monitor their human rights situation.

Kishida said deregulation during the reform era in the early 2000s widened the gap between the haves and have-nots and that former prime minister Shinzo Abe’s “Abenomics”, which sought to fix tattered finances by achieving high growth and boosting tax revenues, did not result in benefits trickling down.

Kishida has said fiscal consolidation would be a major

pillar of his policy and in the past has voiced doubts over the

Bank of Japan’s ultra-loose policy, saying in 2018 that stimulus

cannot last forever.

With the economy suffering from the COVID-19 pandemic, Kishida reversed course to say the BOJ must maintain its massive stimulus. He proposed a spending package of more than 30 trillion yen, adding that Japan likely would not raise a sales tax rate from 10% “for about a decade”.

He stressed the need to distribute more wealth to

households, in contrast to the focus of Abe’s “Abenomics” policies on boosting corporate profits in the hope benefits trickle down to wage-earners.

Soft-spoken consensus builder Kishida to become Japan’s next PM after party vote

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Join the exclusive subscription today and get premium articles for free

Up Next