Takaichi's £1.7tn plan sparks fears of economic shock

Japanese Prime Minister Sanae Takaichi has unveiled a ¥370tn (£1.7tn) spending plan targeting 17 strategic sectors by 2040, including AI and semiconductors. Critics warn of a Liz Truss-style economic shock as the plan is largely unfunded, risking further strain on Japan's debt-to-GDP ratio, already near 230%. Takaichi argues the investment will boost productivity and reduce reliance on China.