Mar. 18, 6pm The Latest NEWS

Whenstay March 18, this is the the Asahi Shimbun Asia and Japan Watch news briefing.

Japan seeks to raise profile in peace mediation with new office.

Amid the current global turmoil, the foreign ministry established a new office tasked with

brokering peace for other countries, a daunting task given Japan's limited track record

in the field.

The international peace mediation unit was established on March 17 within the policy

coordination division of the foreign policy bureau.

As conflicts continue to break out around the world, it is becoming increasingly important

to provide a seamless response, from achieving peace to delivering humanitarian assistance

and supporting recovery and reconstruction, foreign minister Toshimitsu Motegi told the

news conference the same day.

He said Japan will engage more proactively and flexibly in peace mediation efforts, referring

to its distinctive diplomatic relationships, such as maintaining ties with both Israel

and the Papalistinian Authority.

About 25 officials were assigned to the unit, serving concurrently with their existing duties,

according to a foreign ministry source.

The creation of the new office was included in the coalition agreement between the ruling

liberal Democratic Party and Nippon Ishin, Japan Innovation Party, at the latter's request.

However, Japan has only limited experience in playing a leading role in peace negotiations

for other countries.

Questions have been raised about the practical effectiveness of the initiatives since the

early stages of deliberations.

Since direct involvement in peace negotiations is no simple task, the unit is expected to

limit its activities to researching the operations of similar offices in other countries and

participating in international conferences, at least for the time being.

Nissan to import US-produced Morano SUV to Japan in 2027

Nissan Motor Corporation announced on March 17 that it will reverse import its US-produced

Morano Sport Utility Vehicle to Japan, with sales scheduled to begin in early 2027.

During Japan U.S. tariff negotiations, the Japanese government has simplified import procedures

for cars manufactured in the United States.

As a result, the Morano will be sold as is, retaining the country's left-hand drive specifications.

The move marks the Morano's return to the Japanese market for the first time in about 12 years

after sales were discontinued in 2015.

Slightly larger than the X-Trail SUV currently sold in Japan, the Morano has primarily targeted

the U.S. market, where large vehicles are popular.

However, the company believes there is sufficient demand to justify its reintroduction in Japan.

The model is produced at Nissan's Smerna Vehicle Assembly Plant in Tennessee.

The Morano starting price in the U.S. is $41,670, about 6.6 million yen, while the Japanese

price and sales volume have yet to be decided.

Reverse importing vehicles became possible under a new rule that Japan's transport ministry

established in February following the tariff negotiations.

The special exception allows U.S. imports to be approved for safety based on a document

review alone, eliminating the previous requirement for additional vehicle-based testing in Japan.

Toyota Motor Corporation and Honda Motor Company are planning similar reverse imports of

some of their U.S. produced models.

Survey, prices of land keep rising, especially at industrial sites.

Average land prices nationwide across all uses as of January 1 rose 2.8 percent from

a year earlier, the fifth consecutive increase and the sharpest jump since 1991, the land

ministry said March 17.

The ministry's survey assessed about 25,500 locations across Japan, and the prices are

quoted per square meter for standard sites.

Overall prices increased for 68.3 percent of the surveyed locations, remained flat for

12.3 percent, and declined for 19.4 percent.

Among types of use, industrial land prices surged by an average 4.9 percent, up from 4.8 percent

the previous year.

That average outpaced the Hikes in residential land at 2.1 percent, unchanged from the previous

year, and commercial land at 4.3 percent, up from 3.9 percent.

The land ministry announces its officially assessed land prices every March in accordance

with the public notice of land prices law.

The standard site prices are used as a benchmark for general land transactions and as a basis

for calculating acquisition prices for public works projects.

The results showed the highest overall land price increase since it surged by 11.3 percent

in 1991 and in the late asset inflated economic bubble period.

Logistics Facilities

One key driver in the industrial land price increase has been the construction of large

logistics facilities.

The logistics industry is facing an increasingly severe shortage of truck drivers, while the

number of consumers shopping online continues to grow.

As a result, large logistics facilities have been built in locations with good transportation

access, such as coastal areas of major cities and around expressways, to create more

efficient distribution networks.

The battle for land is intensifying, with data centers and factories competing for available

land, a senior real estate executive said.

Major developers, such as Mitsui Futuson Company and Tokyo Detemino Company, have entered

the logistics facility development business to cash in on the search and demand.

Central price increases have been particularly prominent in industrial areas along Tokyo Bay.

The highest price rise for industrial land in the Tokyo metropolitan area was a site in

Tokyo's Odeward, which surged 20.5 percent, up from 13.4 percent the previous year.

Edogawa and Koto Awards in the capital have also continued to see double-digit increases

in prices.

Central Locations

Housing demand remains firm.

Overall, residential land prices in the three major metropolitan areas of Tokyo, Osaka

and Nagoya rose 3.5 percent, up from 3.3 percent the previous year and marking the fifth consecutive

year of increase.

Specifically, the price of residential land in the Tokyo metropolitan area surged 4.5 percent,

up from 4.2 percent the previous year, and 2.5 percent Neosaka metropolitan area, up from

2.1 percent.

Japan urges Iran to ensure safe passage through straight-of-hormos.

Foreign Minister Toshimitsu Motechi held telephone talks with his Iranian counterpart on March 17th

and urged Tehran to immediately halt actions that threaten the safety of navigation in the

straight-of-hormos. In the evening phone call with Iranian Foreign Minister Abbas Arachi,

Motechi called on Iran to take appropriate measures to ensure the safety of all vessels passing

through the straight, including those from Japan and other Asian countries.

The discussion was the first between the two foreign ministers since March 9.

According to Japan's Foreign Ministry, Motechi expressed serious concern about the

violence and damage that has spread as surrounding countries in the Middle East.

Arachi explained the position of Iran, which was came under attack by Israel and the United

States on February 28th, during the talks with Motechi, the ministry said.

Motechi also again requested the early release of two Japanese nationals being detained in Iran.

Teppko's future up for grabs as interested global investors circle.

Dessons of domestic and international investors, including major funds and corporations,

have expressed an interest in a capital partnership with Tokyo Electric Power Company Holdings

Incorporated as part of a major restructuring plan. After beginning its search for partners in

February, Teppko will solicit proposals by the end of March and plans to narrow down the

candidates by the end of this year. Among those that have reportedly shown an interest

are US Investment Funds KKR and AMP, Company in Bain Capital, Domestic Funds to Pan

Industrial Partners Incorporated and Japan Investment Corporation, and various telecommunications

and infrastructure firms, according to multiple sources. Plan takes shape.

The proposals being considered are transformative. One option involves a large-scale investment

in Teppko, potentially taking the utility private through a tender offer, though the government

would retain its majority voting rights. Another strategy involves creating an intermediate

holdings company to consolidate Teppko's non-nuclear power generation, retail and transmission

businesses. Teppko Management believes this new, separate entity would be more attractive to

investors, as it would be shielded from the massive decommissioning costs of the crippled Fukushima

number one nuclear power plant and the risks of a nuclear division. Investor interest is being

fueled by Japan's rising electricity demand, driven by the construction of data centers and

semiconductor factories. While this presents a clear opportunity for growth, Teppko lacks the

financial capacity to fund the necessary investments on its own. Security concerns raised.

The utility remains burdened by the aftermath of the 2011 Fukushima nuclear disaster.

Simultaneously, its core electricity business is struggling against fierce competition

from new power companies. Even as Teppko moves to restart its Kashiwazaki Kariwa nuclear power plant

and negative prefecture, it faces mounting costs for safety upgrades. These financial pressures

prompted the new restructuring plan, announced in January, which relies on external capital to

fuel growth. However, the plan faces significant hurdles. Teppko has a history of pursuing partnerships

with limited success, with the notable exception of Jera Company, its joint thermal power venture

with Chubu Electric Power Company. Furthermore, significant foreign investment in Japan's power

sector is subject to strict screening under foreign exchange laws and raises national security

concerns. The prospect is divisive even within Teppko, with some officials voicing

on ease about foreign entities gaining influence over critical infrastructure.

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