Takaichi reelected as Japan's prime minister

TOKYO (AP) — Japanese Prime Minister Sanae Takaichi was reappointed Wednesday by Parliament to form her second Cabinet, following last week's landslide election win. All previous ministers are expected to be retained.

Takaichi will look to use the symbolism of the day, seen as a formality, to further boost her ruling Liberal Democratic Party as it looks to capitalize on a two-thirds supermajority in the lower house, the more powerful of Japan’s two parliamentary chambers.

Having two-thirds control of the 465-seat lower house allows Takaichi’s party to dominate top posts in house committees and push through bills rejected by the upper house, the chamber where the LDP-led ruling coalition lacks a majority.

Her ambition to revise the U.S.-drafted postwar pacifist Constitution might have to wait, for now, as she is facing pressure to deal with rising prices, a declining population, and worries about military security.

Her first urgent task is to address rising prices and sluggish wages and pass a budget bill to fund those measures, delayed by the election.

Takaichi proposes a two-year sales tax cut on food products to ease household living costs.

Experts caution that her liberal fiscal policy could drive up prices and delay progress on trimming Japan’s huge national debt.

Takaichi is maneuvering for a crucial summit next month with U.S. President Donald Trump, who will visit Beijing in April.

The U.S. president endorsed Takaichi ahead of the Japanese election, and hours before Takaichi's reappointment as prime minister, U.S. Commerce Secretary Howard Lutnick announced Japan will provide capital for three projects under a $550 billion investment package that Japan pledged in October.

Japan is committed to the $36 billion first batch of projects — a natural gas plant in Ohio, a U.S. Gulf Coast crude oil export facility, and a synthetic diamond manufacturing site.

Japan is also under pressure to increase annual defense spending.

Takaichi in November suggested possible Japanese action if China makes a military move against Taiwan, the self-governing island that Beijing claims as its own. That has led to Beijing’s diplomatic and economic reprisals.

Many Japanese, frustrated by China’s growing assertiveness, welcomed her comments on Taiwan.

Emboldened by the big election win, Takaichi could take a more hawkish stance with China, experts say.

Takaichi has pledged to revise security and defense policies by December to bolster Japan’s military capabilities, lifting a ban on lethal weapons exports and moving further away from postwar pacifist principles. Japan is also considering the development of a nuclear-powered submarine to increase offensive capabilities.

Takaichi wants to improve intelligence-gathering and establish a national agency to work more closely with ally Washington and defense partners such as Australia and Britain.

She supports a controversial anti-espionage law that largely targets Chinese spies. Some experts say it could undermine Japanese civil rights.

Takaichi has proposed tougher policies on immigration and foreigners, something that resonates with a growing frustration in Japan.

Her government in January approved tougher rules on permanent residency and naturalization as well as measures to prevent unpaid tax and social insurance.