2 China / Mongolia, etc.

(1) China

A Situation in China

(A) Domestic Affairs

In March, the second session of the 14th National People's Congress (NPC) was held. Premier Li Qiang delivered the Report on the Work of the Government and, in reviewing the previous year, stated that China had weathered external pressures, overcome domestic difficulties, successfully accomplished the main goals and tasks for the year, maintained social stability, and steadily advanced the comprehensive construction of a modern socialist country in all respects in the new era. With respect to policy direction for 2024, Premier Li noted that strategic opportunities continue to coexist with risks and challenges and that favorable conditions outweigh unfavorable factors. He stated that the GDP growth target for 2024 was set at roughly the same level as last year's initial goal, around five percent, but cautioned that meeting this year's goal will not be easy. It was also announced that the post-session press conference by the Premier of the State Council for both domestic and foreign journalists, a post-session practice that had continued for about thirty years, would not take place this time or for several years going forward.

The Third Plenary Session of the 20th Central Committee (Third Plenary Session) was held in July, and it adopted the “Resolution on Further Deepening Reform Comprehensively to Advance Chinese Modernization” (Resolution). The Resolution states that, faced with a complex and intertwined international and domestic situation, a new scientific and technological revolution and industrial transformation, and the people's new expectations, advancing Chinese modernization requires further deepening of reform as a whole, and announces that the reform tasks set out in the Resolution will be completed by the 80th anniversary of the founding of the People's Republic of China in 2029. “Deepening reform comprehensively” was first proposed at the Third Plenary Session of the 19th Central Committee in 2013, and this Resolution, in addition to those earlier reform items, also adds provisions on the objectives “to modernize China's system and capacity for governance” and to “foster favourable external environment.” Additionally, in terms of personnel matters, the resignation of former Foreign Minister Qin Gang was accepted, and he was dismissed from his position as a Central Committee member.

Unlike the previous ones, Communist Party of China (CPC) Central Committee Political Bureau meeting in September focused on the economy. The Central Economic Work Conference was held in December as usual.

The year 2024 marked the 75th anniversary of the founding of the People's Republic of China, and on September 30 a commemorative reception was held at the Great Hall of the People. In his keynote address, President Xi Jinping expressed gratitude to the leaders, martyrs, and heroes who contributed to the nation's founding and development, and emphasized the building of a strong country through Chinese modernization. He also warned that “the road ahead cannot be smooth; there will inevitably be difficulties and challenges such as strong winds, high waves, and even raging storms that await us,” indicating his recognition of the severe tests to come.

2024 also marked the 25th anniversary of Macao's return, and President Xi visited Macao to attend the 25th anniversary of Macao's return to the motherland and the inaugural ceremony of the sixth-term government of the Macao Special Administrative Region.

The international community continues to express high interest in China's human rights situation, including in the Xinjiang Uygur Autonomous Region (XUAR) and the situation surrounding Hong Kong. Japan believes that it is important that universal values and principles of the international community, such as freedom, respect for fundamental human rights, and the rule of law, are guaranteed in China, and Japan has been directly communicating its position to the Government of China, for example by also taking summit meetings and foreign ministers' meetings as opportunities to express serious concern about these situations. In the communiqués from the G7 Apulia Summit in June and the G7 Foreign Ministers' Meeting in April, the G7 concurred to continue expressing concern about human rights situation in China. Furthermore, at the UN, Japan has been the only member state from Asia to participate in a joint statement by like-minded countries expressing concerns about the human rights situation in China. In October, at the Third Committee of the UN General Assembly, Australia delivered a joint statement on behalf of fifteen countries regarding human rights violations in the XUAR and the Tibet Autonomous Region, and Japan joined that statement. The Government of Japan will continue strongly urging China to take action while also closely cooperating with the international community.

(B) Economy

At the NPC held in March, a conservative growth rate target of around 5% was set for 2024, which was the same as the previous year. The deficit-to-GDP ratio was also maintained at 3.0%, and the upper limit for new local government special bonds was modestly raised to 3.90 trillion CNY (up from 3.80 trillion CNY the previous year). Premier Li Qiang also explicitly stated that “achieving this year's targets will not be easy.” As a result, China's full-year real GDP growth rate for 2024 increased by 5.0% year-on-year, achieving the target, and by quarter, the first quarter (January to March) increased by 5.3% year-on-year, the second quarter (April to June) increased by 4.7% year-on-year, the third quarter (July to September) increased by 4.6% year-on-year, and the fourth quarter (October to December) increased by 5.4% year-on-year.

China's economy has remained stalled due to a sluggish real estate market and deteriorating consumer sentiment. Although the youth unemployment rate, which had climbed in 2023, was again published in 2024 (excluding students), it stood at 18.8% in August 2024, remaining at a persistently high level. Meanwhile, imports and exports trended higher than in 2023, driven by a rebound from the previous year's weak performance and a precautionary last-minute demand due to concerns about various countries' policies toward China regarding semiconductors and electric vehicles (EVs).

In July, the Third Plenary Session of the 20th CPC Central Committee was convened under the theme of “Chinese modernization,” and highlighted five key priorities: (1) the Party's role as the driving force in economic‐system reform; (2) institutional mechanisms that support all-around innovation; (3) comprehensively deepening reform; (4) unified planning for development and security; and (5) strengthening the Party's leadership over reform. Real estate, the cause of China's economic slowdown, is now considered to be a livelihood issue rather than an economic issue, with greater emphasis placed on medium‐ to long‐term development centered on science and technology. In the latter half of July, in order to stimulate sluggish domestic consumption, the government announced an expansion of subsidy programs of approximately 300 billion CNY, to encourage the replacement of passenger cars and home appliances. At the meeting of the Political Bureau of the CPC held at the end of July, President Xi Jinping reiterated that the economy went through bipolarization and designated standalone priorities: expanding domestic demand through consumption promotion and comprehensively revitalizing rural areas. As noted earlier, unlike the previous ones, the meeting of the Political Bureau of the CPC in September focused on economic conditions. It assessed that “the fundamentals of the Chinese economy, and favorable conditions such as a vast market, strong economic resilience and great potential remain unchanged, but also new challenges have emerged in economic management.” The meeting then set forth measures such as responding to economic fluctuations via fiscal and monetary policies, ensuring necessary fiscal outlays, supporting businesses facing difficulties, and ensuring the bottom line of people's livelihoods by providing assistance for jobseekers and low-income individuals, and pledged to strive toward meeting the annual targets. From late September to the end of October, relevant ministries held press briefings to unveil specific policies, including in finance (cuts to mortgage interest rates), fiscal policy (strengthened aid for the poor and for students via increased scholarships), and real estate (expanded lending for projects listed on the so-called “whitelist”). In October, the Standing Committee of the NPC approved raising the local government debt limit by 6 trillion CNY to replace hidden debts. Moreover, by allocating 800 billion CNY from newly issued local government special bonds over five consecutive years starting in 2024, local fiscal resources for debt resolution will increase by 10 trillion CNY, thereby enabling the reduction of total hidden local government debt from 4.3 trillion CNY to 2.3 trillion CNY by 2028.

At the Central Economic Work Conference held in December, it was recognized that, despite facing a complex and severe situation marked by increasing external pressures and internal difficulties in 2024, economic management remained generally stable, and the principal goals and tasks of economic and social development were smoothly and successfully achieved. On the other hand, it was also acknowledged that the adverse effects of shifting external conditions are deepening, that the production and operations of some enterprises have become difficult primarily due to insufficient domestic demand, that employment and income growth for the populace are under pressure, and that numerous risks remain.

(C) Foreign Policy

At the Foreign Minister's press conference during the NPC sessions on March, Member of the Political Bureau of the CPC Central Committee and Foreign Minister Wang Yi, stated, “China will strive for stability in major-country relations, common progress with its neighboring countries, and rejuvenation with fellow countries in the Global South.” In 2024, diplomatic activities at various levels, including high-level engagements led by President Xi Jinping, have remained active.

In relations with Russia, direct communication between the leaders of China and Russia remained frequent in 2024, and during President Vladimir Putin's first foreign visit of his overall fifth term, to China in May, the two leaders released a Joint Statement of the People's Republic of China and the Russian Federation on Deepening the Comprehensive Strategic Partnership of Coordination for the New Era in the Context of the 75th Anniversary of China-Russia Diplomatic Relations, which affirmed that the partnership's development aligns with the fundamental interests of both countries.

In relations with neighboring countries, China's exchanges with ASEAN member states have been more frequent than with other regions, and the President of Indonesia and the President of Viet Nam, who both took office in 2024, chose China as their first foreign destination.

As for relations with Global South countries, the Summit of the Forum on China-Africa Cooperation (FOCAC) was held in Beijing in September. At the Summit, President Xi Jinping announced that China would upgrade its bilateral relations with all African countries with which it has diplomatic relations to a “Strategic partnership,” that it would upgrade its relations with Africa as a whole to an “all-weather China-Africa community with a shared future for the new era,” and proposed cooperation in a wide range of fields, including security, cultural and people-to-people exchanges, green development, and food aid. In addition, the “Beijing Declaration” adopted at the meeting, included numerous Chinese positions, including the “community with a shared future for mankind, Belt and Road cooperation, the Global Development Initiative (GDI), the Global Security Initiative (GSI) and the Global Civilization Initiative (GCI),” as well as support for China's positions on Taiwan, Hong Kong, Xinjiang, and Tibet, and measures to deter “decoupling” and unilateralism.

At the Shanghai Cooperation Organisation (SCO) Heads of State Council Meeting held in Astana, Kazakhstan, in July, Belarus's accession was approved. At the BRICS⁽⁶⁾ Summit held in Russia in October, the outcome document created a new category of “BRICS Partner Countries,” reflecting China's emphasis on expanding multilateral platforms. Moreover, at the G20 Rio de Janeiro Summit in Brazil in November, President Xi Jinping reiterated his commitment to walking together with Global South countries.

With respect to U.S.-China relations, particularly since the U.S.-China Summit meeting at the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in San Francisco in November 2023, communication has taken place at various levels, including high-level exchanges, among defense authorities and in areas such as illicit drug control, artificial intelligence (AI), and climate change. A U.S.-China summit meeting was also held at the APEC Economic Leaders' Meeting in Peru in November. President Xi Jinping noted that, over the past four years, U.S.-China relations have undergone turbulence yet have also engaged in dialogue and cooperation, thereby achieving overall stability, and he underscored that the Taiwan question, democracy and human rights, China's path and system, and China's development right are four red lines for China.

Meanwhile, economic confrontation between the U.S. and China, including economic security, has expanded since the previous year. In 2023 China added gallium, germanium, and graphite to the list of items subject to export control measures, and in September 2024, the list was further expanded to include antimony and items related to superhard materials. Also in September 2024, the U.S. decided to significantly raise tariffs against China under Section 301 of the Trade Act. These tariffs applied to some Chinese products, such as EVs and semiconductors (worth a total of 18 billion U.S. dollars). President Biden stated that the tariffs protect American workers from China's unfair trade policies and practices. In response, China expressed “strong dissatisfaction and firm opposition.” In October, the U.S. announced that an Executive Order prohibiting Americans from investing in China's semiconductor and microelectronics, quantum information technology, and AI sectors in case such investments pose a particularly acute national security threat, would take effect in January 2025. Also in October, China implemented its Regulations on the Administration of Rare Earths. In December, the U.S. announced enhancement of its export-controls on semiconductors and semiconductor-manufacturing equipment bound for China. Later in December, Ministry of Commerce of China announced measures to tighten controls over the export on shipments to the U.S. of dual-use items related to gallium, germanium, antimony, and superhard materials. Stable U.S.-China relations are important not only for Japan, but also for the entire international community. Japan will continue to closely monitor future developments.

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• (6) BRICS: A term referring to Brazil, Russia, India, China, and South Africa. At the summit meeting in August 2023, invitations for new membership were announced for Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE). (Argentina subsequently withdrew its application for membership due to a change of administration, and there are also reports that Saudi Arabia has not yet joined.) At the summit meeting in October 2024, the leaders concurred on creating a new category of BRICS Partner Countries, and 2024 chair country Russia announced that nine countries ─ Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan ─ will join as Partner Countries from January 2025. In January 2025, Brazil, 2025 chair country, announced Indonesia's full membership.

(D) Military Affairs and Security

At the 19th CPC National Congress (2017), President Xi Jinping stated that China would transform its armed forces into a world-class military by the middle of this century. Additionally, the communique from the fifth plenary session of the 19th CPC Central Committee, published in October 2020, set the new goal of “securing the realization of the centennial goal by 2027, the 100th anniversary of the founding of the Chinese People's Liberation Army (PLA). Furthermore, at the 20th CPC National Congress in 2022, he reiterated this point, stating that “Achieving the goals for the centenary of the People's Liberation Army in 2027and more quickly elevating our people's armed forces to world-class standards are strategic tasks for building a modern socialist country in all respects.” The defense budget published by China does not sufficiently disclose its breakdown or the intentions behind its increases, and is believed to represent only a portion of actual military expenditures. Amidst such circumstances, China, under its “development strategy of civil-military fusion,” has been extensively and rapidly enhancing the quality and quantity of its military power centered on its nuclear and missile capabilities and naval and air forces. In addition, China is placing importance on ensuring its superiority in new domains of outer space, cyberspace, the electromagnetic spectrum, AI, and unmanned systems, and promoting the modernization of its military through “integrated development of mechanization, informatization and intelligentization.”

In 2024, in August, a Chinese military aircraft intruded into Japan's territorial airspace, and in September, the aircraft carrier of the Chinese Navy Liaoning navigated waters close to the territorial sea between Yonaguni Island and Iriomote Island, both of which were the first incidents of their kind. Joint navigations by Chinese and Russian naval vessels and joint flights by Chinese and Russian bombers in the vicinity of Japan were confirmed, continuing on from the previous years. Moreover, following Taiwan's presidential inauguration ceremony in May and the “Double Ten Day” celebrations in October, China conducted military exercises in the maritime and air domains surrounding Taiwan. At the Japan-China Summit Meetings held in May, October, and November, Prime Minister Kishida and Prime Minister Ishiba stated that Japan is closely monitoring relevant developments including military activities and reiterated that peace and stability across the Taiwan Strait is extremely important for the international community, including Japan. In the South China Sea, China has been continuing and intensifying its unilateral attempts to change the status quo by force and to render them faits accomplis which goes against the rule of law and openness, as well as actions to increase regional tensions, such as further militarization of disputed features and the dangerous and coercive use of coast guard and maritime militia vessels and aircraft against coastal States and others.

In recent years, China has grown to have a great influence on the international community, not only politically and economically, but also militarily. China's current external stance, military activities, and other activities have become a matter of serious concern for Japan and the international community, and present an unprecedented and the greatest strategic challenge in ensuring the peace and security of Japan and the peace and stability of the international community, as well as in strengthening the international order based on the rule of law, to which Japan should respond with its comprehensive national power and in cooperation with its ally, like-minded countries and others. With regard to China's rapid strengthening of its military capabilities and expansion of military activities, Japan will strongly encourage China to improve transparency and to cooperate constructively with international efforts for arms control, disarmament and other such efforts, in cooperation with its allies, like minded countries and others. Furthermore, in order to nurture a relationship of trust between China and Japan, Japan will enhance communication with China in the security field, including through dialogues and exchanges such as the Japan-China Security Dialogue. Additionally, Japan will promote efforts between Japan and China, including the establishment of frameworks to avoid and prevent unforeseen situations with China, such as the Maritime and Aerial Communication Mechanism between the Japanese and Chinese defense authorities. In this way, Japan, in cooperation with related countries, is strongly urging China to improve its transparency to dispel the concerns of the international community, including Japan, while further promoting mutual trust in Japan-China relations.

B Japan-China Relations

(A) Bilateral Relations: General

Relations with neighboring China are one of Japan's most important bilateral relations, and the two countries have close economic ties and people-to-people and cultural exchanges. While there are various possibilities between Japan and China, there are a number of challenges and concerns, including unilateral attempts to change the status quo by force in the East China Sea and South China Sea as well as the situation surrounding the Senkaku Islands, and intensified military activities around Japan by China, including those conducted in coordination with Russia. Peace and stability across the Taiwan Strait is also important. Furthermore, Japan is seriously concerned about the situation in Hong Kong and the human rights situation in the XUAR. At the same time, both Japan and China have a great responsibility for the peace and prosperity of the region and international community. Japan will comprehensively promote a “Mutually Beneficial Relationship Based on Common Strategic Interests.” At the same time, it is important that both China and Japan promote efforts to build constructive and stable relations, in which Japan maintains and asserts its position, and strongly calls for responsible actions by China, while continuing dialogue including on issues of concern and cooperating on matters of common interest.

Continuing on from the previous year, in 2024, high level communication, including between leaders, was continuously conducted. Japan and China exchanged opinions on a wide range of topics, from bilateral relations to regional and international affairs, including on a variety of issues between the two countries.

On May 26, while visiting Seoul, ROK to attend the Japan-China-ROK Trilateral Summit, Prime Minister Kishida held a summit meeting with Premier Li Qiang of the State Council. Prime Minister Kishida stated that he hopes to continue dialogue at various levels and make progress on various challenges as well as issues of concern between Japan and China while materializing various possibilities that exist in Japan-China relations, in line with the broad direction of comprehensively promoting a “Mutually Beneficial Relationship Based on Common Strategic Interests” and building “constructive and stable Japan-China relations,” which was reaffirmed by Prime Minister Kishida and President Xi Jinping in November 2023, and Premier Li Qiang expressed similar views.

On July 26, while visiting Laos to attend the ASEAN-related Foreign Ministers' Meetings, Foreign Minister Kamikawa held a Foreign Ministers' Meeting with Foreign Minister Wang Yi. Foreign Minister Kamikawa welcomed the communication and exchange of views between the two countries, including the recent convening of the Japan-China Strategic Dialogue, under a broad direction of comprehensively promoting a “Mutually Beneficial Relationship Based on Common Strategic Interests” and building “constructive and stable Japan-China relations,” and Foreign Minister Wang expressed similar views. The two Foreign Ministers concurred on making persistent efforts to rhythmically build multilayered communication, including mutual visits by the Foreign Ministers, which both sides have extended invitations for.

On September 23, while visiting New York to attend the UN General Assembly, Foreign Minister Kamikawa held a Foreign Ministers' Meeting with Foreign Minister Wang Yi. In relation to the incident in which a Japanese school student was attacked and later passed away in Shenzhen, Foreign Minister Kamikawa urged the Chinese side to clarify the truth. In addition, Minister Kamikawa strongly urged the Chinese side to take concrete measures to ensure the safety of Japanese nationals residing in China and to take actions against anti-Japanese social media posts. In response, Foreign Minister Wang expressed that China's position has been as stated by the Foreign Ministry Spokesperson, and that what has happened is an isolated and individual case that China would not like to see happen, and that it will be dealt with in accordance with the Chinese law. Regarding the discharge of ALPS treated water⁽⁷⁾ into the sea and China's import restrictions on Japanese aquatic products, Minister Kamikawa reiterated Japan's consistent approach based on scientific evidence. Further, based on the shared recognition between Japan and China that was announced on September 20, Foreign Minister Kamikawa also stated Japan's intention to carry out the additional monitoring as soon as possible and ensure tangible progress toward the elimination of the restrictions.

On October 10, Prime Minister Ishiba, while visiting Laos to attend the ASEAN-related Summit Meetings, held a summit meeting with Premier Li Qiang. The two leaders confirmed that Japan and China continue to share a broad direction of comprehensively promoting a “Mutually Beneficial Relationship Based on Common Strategic Interests” and building “constructive and stable Japan-China relations.” The two leaders also confirmed to maintain multilayered communications between Japan and China at all levels, including at the summit level, with a view to realizing concrete outcomes. In this context, Prime Minister Ishiba emphasized that while there is potential for cooperation as well as issues and concerns between the two countries, he hopes to work together to ensure that the people of both countries could benefit from the development of the relationship through the efforts of both governments. The two leaders both expressed their appreciation for the announcements made by their respective governments regarding the discharge of ALPS treated water into the sea and China's import restrictions on Japanese aquatic products. In this vein, Prime Minister Ishiba called for the early restoration of imports of Japanese aquatic products.

On November 15, Prime Minister Ishiba, while visiting Peru to attend APEC Economic Leaders' Meeting, held a Japan-China Summit Meeting with President Xi Jinping. The two leaders confirmed that Japan and China continue to share a broad direction of comprehensively promoting a “Mutually Beneficial Relationship Based on Common Strategic Interests” and building “constructive and stable Japan-China relations.” In addition, the two leaders affirmed to firmly uphold the principles and common recognition of the four basic documents between Japan and China and to build a relationship in which they could continue candid dialogue. Furthermore, under this broad direction, the two leaders confirmed to make joint efforts to further strengthen communication at all levels, including at the summit level, in a wide range of fields, and to reduce issues and concerns and increase cooperation and coordination. Prime Minister Ishiba emphasized that he seeks to build up concrete results through efforts by both sides so that the people of both countries could appreciate the positive development in Japan-China relations.

Additionally, the two leaders confirmed that they would make arrangements to realize mutual visits by their respective foreign ministers, including holding the Japan-China High-Level People-to-People and Cultural Exchange Dialogue and Japan-China High-Level Economic Dialogue at an appropriate time, in view of expanding cooperation and resolving issues of concern. The two leaders reaffirmed that both sides would steadily implement the announcements regarding the discharge of ALPS treated water into the sea and China's import restrictions on Japanese aquatic products. In this vein, Prime Minister Ishiba called for the early restoration of imports of Japanese aquatic products. Prime Minister Ishiba called on the Chinese side to promptly resume discussions on the resumption of Japanese beef exports and the expansion of exports of Japanese rice, and the two leaders confirmed that both sides would maintain communications. The two leaders also concurred on making efforts to make progress on concrete cooperation in fields such as green economy, including environment and energy conservation, as well as medical care, nursing care and healthcare. They also concurred to work together on global issues. Prime Minister Ishiba expressed Japan's serious concerns about the situation in the East China Sea, including the situation surrounding the Senkaku Islands, and the intensification of Chinese military activities, and called on the Chinese side to address them. Regarding incidents resulting in deaths and injuries, including of students at Japanese schools in Suzhou and Shenzhen, Prime Minister Ishiba also requested that the Government of China strengthen safety measures for Japanese nationals residing in China. In response, President Xi stated that China, a country ruled by law, will handle cases in accordance with the law, and that China will ensure to protect the safety of foreign nationals residing in China, including Japanese citizens. Prime Minister Ishiba stated that Japan is closely monitoring relevant developments including military activities and reiterated that peace and stability across the Taiwan Strait is extremely important for the international community, including Japan. Prime Minister Ishiba expressed Japan's serious concerns about the situations in the South China Sea, Hong Kong, XUAR and others. In addition, Prime Minister Ishiba called for the early release of the detained Japanese nationals. The two leaders also exchanged views on the situation regarding North Korea, including the abductions issue.

On December 25, Foreign Minister Iwaya visited China, where he held talks with Foreign Minister Wang Yi and paid a courtesy call on Premier Li Qiang. Furthermore, Foreign Minister Iwaya and Minister of Education, Culture, Sports, Science and Technology ABE Toshiko held the Second Japan-China High-Level People-to-People and Cultural Exchange Dialogue with Foreign Minister Wang Yi and Minister of Culture and Tourism Sun Yue-li.

During the Japan-China Foreign Ministers' Meeting, the two foreign ministers, under a broad direction of comprehensively promoting a “Mutually Beneficial Relationship Based on Common Strategic Interests” and building “constructive and stable Japan-China relations” as confirmed by the leaders of both Japan and China, concurred that they would make joint efforts to reduce issues and concerns and increase cooperation and coordination. In addition, to this end, the two ministers confirmed that they would further strengthen communication at various levels and in a wide range of fields, accelerate necessary consultations and work, and make utmost efforts to realize concrete results by utilizing opportunities including high-level communication and interaction, including between the leaders and foreign ministers.

At the courtesy call on Premier Li Qiang, both sides concurred that they would expand cooperation in the area of people-to-people exchange and economic field, and on the importance of promoting mutual understanding between both countries and their people through the promotion of exchange and dialogue at various levels and by making efforts to improve public sentiment toward each other's country, and also concurred that both Japan and China would work together to fulfill their responsibilities as major powers which have responsibility in the region and the world.

During the Second Japan-China High-Level People-to-People and Cultural Exchange Dialogue, both sides confirmed that the Governments of Japan and China would support exchanges between the two countries in order to revitalize two-way people-to-people and cultural exchanges between Japan and China. Furthermore, both sides concurred to work together to enhance opportunities for youth exchanges and exchanges between experts, as well as to improve the quality of these programs; additionally, both sides concurred to deepen exchanges with the view of contributing to the regional revitalization of both Japan and China.

In addition, in July the Japan-China Strategic Dialogue was held; in October various face-to-face meetings at the working level were held, including the Japan-China High-Level Consultation on Maritime Affairs; and close communication between Japan and China continued at working levels, including frank exchanges of views on various outstanding issues such as the situation in the East China Sea and increased military activity by China.

Furthermore, Japan-China Defense Ministerial Meetings were held in June and November.

2024 was also a year in which exchanges between Japanese and Chinese lawmakers and political parties became more active. In May, Liu Jianchao, head of the International Department of the CPC Central Committee, visited Japan and engaged with Japanese officials, including political party officials; in July, Minister of Health, Labour and Welfare TAKEMI Keizo, Chairperson of Diet Affairs Committee MORIYAMA Hiroshi, and Vice-Speaker of the House of Representatives KAIEDA Banri visited China; in August a delegation from the Japan-China Friendship Parliamentarians' Union, led by Chairman NIKAI Toshihiro, visited China for the first time in five years; and a delegation led by Constitutional Democratic Party Secretary-General OKADA Katsuya also visited China.

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• (7) ALPS treated water is water which is processed by devices such as ALPS (Advanced Liquid Processing System) for its radioactive materials other than tritium to surely become below the regulatory standards for safety. ALPS treated water is then sufficiently diluted so that the concentrations of the radioactive materials including tritium is far below the regulatory standards for safety, and then finally discharged into the sea.

(B) Japan-China Economic Relations

Economic relations between Japan and China, including trade and investment, are very close. In 2023, the total trade between Japan and China (excluding Hong Kong) amounted to about 42.2 trillion Japanese yen (3.8% decrease year-on-year), and China has been the largest trading partner for Japan for 18 consecutive years.

Moreover, according to Chinese statistics, Japan's direct investment in China was about 3.88932 billion U.S. dollars (15.5% increase year-on-year, as estimated from officially published information on investment) in 2023. Japan ranks third in terms of the amount of direct investment to China (Singapore ranks first and the Netherlands ranks second). According to balance of payment statistics, China is Japan's 14th largest investment destination, and is a source of direct investment income of approximately 2.7 trillion Japanese yen.

In addition, in 2024, economic exchanges at the private sector level between Japan and China became even more active. In January, a joint delegation to China, comprised of the KEIDANREN (Japan Business Federation), Japan-China Economic Association, and the Japan Chamber of Commerce and Industry, visited China for the first time in about four years, where it held meetings with Premier Li Qiang and Minister of Commerce Wang Wentao. In July, the Japan Association for the Promotion of International Trade visited China; in November, the KEIZAI DOYUKAI (Japan Association of Corporate Executives) and a delegation of representatives from the Kansai business community traveled to China; and in December, the 10th Japan-China Entrepreneurs and Former Senior Government Officials Dialogue (Japan-China CEO Summit) was held in Beijing.

(C) Promotion of Mutual Understanding Between Japanese and Chinese People

(Current situation of people-to-people exchanges between Japan and China)

In 2024 the number of visitors to Japan from China reached approximately 6.981 million (provisional value from the Japan National Tourism Organization (JNTO)), marking a substantial increase from approximately 2.425 million visitors in 2023 (finalized value from JNTO) and recovering to roughly 70 percent of the 2019 level.

A wide range of cultural, economic, educational, and regional exchanges have been built up between Japan and China.

As for youth exchange programs for the next generation, these were resumed following the COVID-19 pandemic. Under the JENESYS program to promote mutual understanding and understanding of Japan, visiting Chinese high school and university students deepened mutual understanding through interactions with Japanese youth, and sector-specific delegations also deepened their understanding and interest in Japan's initiatives through site visits and briefings. Likewise, the Japan-China International Solidarity Project for Afforestation and Tree Planting invited young people from China to participate in tree-planting activities, environmental and disaster-prevention seminars, and visits to companies and related facilities, all aimed at raising awareness of environmental and disaster prevention issues and of further promoting understanding of Japan.

Moreover, personnel at various levels and fields such as politics, economics, governments, and academia in the central and regional settings are invited to Japan in an effort to build and strengthen wide-ranging partnerships. Through these exchanges, it is expected that invitees and Japanese counterparts will forge strong relationships and that an accurate understanding of Japan will be fostered.

(D) Specific Pending Issues

(Situation Surrounding the East China Sea)

In the East China Sea, China Coast Guard vessels continue to intrude into the Japanese territorial sea around the Senkaku Islands. The Chinese military has also been rapidly expanding and increasing its activities in quality and quantity in the sea and in the airspace over the East China Sea.

The Senkaku Islands are indisputably an inherent territory of Japan in light of historical facts and based upon international law. Indeed, the Senkaku Islands are under the valid control of Japan. Thus, there exists no issue of territorial sovereignty to be resolved concerning the Senkaku Islands. From 1895, when the Senkaku Islands were incorporated into Japanese territory by lawful means under international law, until the 1970s, when the islands became the focus of attention after it was suggested that there might be oil reserves in the East China Sea, China had not raised any objections to Japan's sovereignty over the Senkaku Islands. Moreover, China has never explained why it had not expressed objections until then. Subsequently, in 2008, 2 vessels belonging to China's State Oceanic Administration intruded into Japanese territorial sea surrounding the Senkaku Islands for the first time.⁽⁸⁾

During 2024, 39 incidents were recorded in which China Coast Guard vessels intruded into the Japanese territorial sea surrounding the Senkaku Islands (there were 34 incidents in 2023 and 28 incidents in 2022), and the number of confirmed days in 2024 in which China Coast Guard vessels navigated the contiguous zone around the Senkaku Islands reached a record high of 355 days. Furthermore, since May 2020, Chinese Coast Guard vessels have intruded into the Japanese territorial sea of the Senkaku Islands and there have been incidents in which China Coast Guard vessels frequently attempt to approach Japanese fishing boats in those waters, and the situation remains severe, as evidenced by an incident associated with China's such attempts that occurred in April 2023, in which an intrusion into Japan's territorial sea lasted more than 80 hours, the longest ever recorded. The activities of the China Coast Guard vessels, which make their own assertions in Japan's territorial sea around the Senkaku Islands, are in violation of international law, and, in response to China's such unilateral attempts to change the status quo by force, through diplomatic routes the Government of Japan has repeatedly lodged strong protests, has called for the prompt withdrawal of Chinese vessels from Japan's territorial sea, and has demanded that such incidents be prevented from reoccurring. With the determination to defend Japan's territory as well as territorial sea and airspace, Japan will continue to take a calm and resolute approach to the situation.

Chinese naval vessels and aircrafts have also been accelerating their activities in the sea and airspace around Japan, including in the East China Sea. In 2024, in August, a Chinese military aircraft intruded into Japan's territorial airspace, and in September, the aircraft carrier of the Chinese Navy Liaoning navigated waters close to the territorial sea between Yonaguni Island and Iriomote Island, both of which were the first incidents of their kind. Continuing on from the previous year, Japan also confirmed instances in which a Chinese naval survey ship navigated Japanese territorial sea around Yakushima. With regard to the airspace intrusion in particular, Japan has strongly urged the Chinese side, at various levels, to provide a prompt and appropriate explanation, and the Chinese side has acknowledged the facts of the incident and explained that it will strive to prevent similar incidents from recurring. The Government of Japan will remain mindful of this and will continue to monitor China's future actions. As for China-Russia military cooperation around Japan, joint flights by Chinese and Russian strategic bombers were confirmed in November, and joint navigation by Chinese and Russian naval vessels were confirmed in July and October, continuing on from the previous years. On multiple occasions Chinese naval vessels were also confirmed to be navigating waters surrounding Japan including in those around the Senkaku Islands. Japan has serious concerns in light of these recent developments by Chinese military in the sea and airspace around Japan. In addition, because the joint actions by the Chinese and Russian militaries around Japan are serious security concerns for Japan, Japan has appropriately raised objections with the Chinese side regarding each incident.

Chinese aircraft activity, including by unmanned aerial vehicles, continues to occur, and the number of times the Air Self-Defense Force has had to scramble jets in response to Chinese military aircrafts since 2013 has remained high. In response to these recent activities by the Chinese military, Japan has been raising the issues through diplomatic routes.

China has been continuing its unilateral activities to develop natural resources while the Exclusive Economic Zone (EEZ) and the continental shelf between Japan and China in the East China Sea remain pending delimitation. In addition to the four structures built by the Chinese side prior to the “2008 Agreement” on resource development in the East China Sea, the Government of Japan has confirmed 12 new structures built between June 2013 and May 2016 that are west of the geographical equidistance line and two new structures that have been built since May 2022, for a total of 18 structures have been installed in 16 locations so far (at two of the 16 locations, two structures have been integrated into a single structure). Such unilateral development activities are extremely regrettable, and every time such moves by China are detected, Japan has strongly requested China to cease its unilateral development and to immediately resume negotiations for the conclusion of international agreements based on the implementation of the “2008 Agreement” regarding the development of natural resources in the East China Sea. At the Japan-China Summit Meeting between Prime Minister Abe and President Xi Jinping in Osaka in June 2019, the two leaders shared the view of promoting and implementing the “2008 Agreement” regarding resource development in order to achieve the goal of making the East China Sea a “Sea of Peace, Cooperation and Friendship.”

In recent years numerous activities by China to carry out maritime surveys in and around Japan's EEZ, including in the East China Sea, without obtaining Japan's approval, have also continued, and each time this happens Japan raises objections with the Chinese side through diplomatic routes.

Additionally, in July 2023, the existence of a buoy considered to have been installed by China was confirmed to be in Japan's EEZ in the East China Sea. The Government of Japan has lodged protests with the Chinese side at every level, including at the leader and foreign ministerial levels, on multiple occasions, and has repeatedly and strongly called for the immediate removal of the buoy. In February 2025, it was confirmed that the buoy does not present within Japan's EEZ. Regarding a new buoy confirmed in December 2024 within Japan's EEZ south of Yonaguni Island, the Government of Japan has likewise urged on China to immediately remove it, including at the Japan-China Foreign Ministers' Meeting in December.

In order to appropriately deal with these maritime and security concerns, both Japan and China have been promoting dialogue and exchanges between the authorities concerned. For example, in June 2018 the defense authorities of Japan and China began operation of the Maritime and Aerial Communication Mechanism between the Japanese and Chinese defense authorities, which is highly significant for promoting mutual understanding between both countries and avoiding and preventing accidental collisions, and under the Mechanism the operation of the Hotline between Japanese and Chinese Defense Authorities began in May 2023.

As Japan has stated on repeated occasions, including at Japan-China Summit Meetings, true improvement in Japan-China relations cannot be achieved without stability in the East China Sea. It is highly meaningful from the perspective of building trust and bolstering cooperation for diplomats from both countries to directly and frankly exchange opinions, such as at the Japan-China High-Level Consultation on Maritime Affairs or other discussions between related authorities of both countries. The Government of Japan will continue asserting Japan's position on individual issues through steady dialogue and bolstering of communication.

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• (8) Ministry of Foreign Affairs website detailing the position of the Government of Japan on the Senkaku Islands:
  https://www.mofa.go.jp/region/asia-paci/senkaku/index.html
  

(Yamato Bank)

Regarding Japan's responses to Chinese fishing vessels engaging in illegal fishing in the waters around the Yamato Bank in the Sea of Japan, the number of vessels warned to depart by Japan Coast Guard patrol vessels and Fisheries Agency enforcement vessels was 57 in 2023 and 32 in 2024, and illegal fishing by Chinese fishing vessels continues to be confirmed. In light of this situation, Japan has repeatedly conveyed its concerns to the Chinese side, making use of opportunities such as the Japan-China High-Level Consultation on Maritime Affairs, and has strongly urged the Chinese side to take effective measures, including strengthened guidance for fishermen.

(Japanese Food Import Restrictions Issue)

Regarding China's import restrictions on Japanese food products, Japan has repeatedly and strongly urged for their elimination as soon as possible, at all levels, including at the leader and foreign ministerial levels.

In August 2023, in response to the start of the discharge of ALPS treated water into the sea, the Government of China announced a temporary suspension of all imports of Japanese aquatic products. China's introduction of new measures in addition to existing import restrictions is a response that is not based on scientific evidence, and is entirely unacceptable.

In September, Japan and China announced a “Shared Recognition between Japan and China”⁽⁹⁾ regarding the discharge of ALPS treated water into the sea and China's import restrictions on Japanese aquatic products. After conducting additional measures under the framework of the International Atomic Energy Agency (IAEA), the Chinese side will initiate adjustment of its import restrictions on Japanese aquatic products, and will steadily restore imports of Japanese aquatic products. In October, as part of the additional measure, analytical laboratories of participating countries including China, collected sea water samples near TEPCO's Fukushima Daiichi Nuclear Power Station under the IAEA framework. In January 2025, the Government of China announced that its laboratory had completed itsanalyses and found no abnormality.

At the Japan-China Summit Meeting held in Peru in November, Prime Minister Ishiba and President Xi Jinping confirmed that both countries would properly implement the announcements regarding the discharge of ALPS treated water into the sea and the import restrictions on Japanese aquatic products, and Prime Minister Ishiba called for early restoration imports of Japanese aquatic products. At the Japan-China Foreign Ministers' Meeting held in China in December, Foreign Minister Iwaya and Foreign Minister Wang Yi shared the view that both countries would properly implement the announcements, published in September, regarding the discharge of ALPS treated water into the sea and the import restrictions on Japanese aquatic products, as confirmed by the two leaders, and Foreign Minister Iwaya called for the early lifting of import restrictions on Japanese aquatic products.

Furthermore, in response to China's August 2023 notification at the World Trade Organization (WTO) based on the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement), the Government of Japan has submitted its counterargument in writing to the WTO that refutes China's claims, and has also explained Japan's position at related formal meetings, including at the SPS Committee. Furthermore, the Government of Japan has requested that the Government of China hold discussions based on the provisions of the SPS Agreement and the Regional Comprehensive Economic Partnership (RCEP) Agreement.

Based on the “Shared Recognition between Japan and China” that was announced in September, Japan will continue to call on China to realize the early restoration of imports of Japanese aquatic products at all levels, including at the leader and foreign ministerial levels.

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• (9) Ministry of Foreign Affairs website detailing the “Shared Recognition between Japan and China” that was released on September 20, 2024:
  https://www.mofa.go.jp/press/release/pressite_000001_00598.html
  

(Cases of Detainment of Japanese Nationals)

Since May 2015, 17 Japanese nationals have been detained on charges related to China's “national security.” In regard to successive cases of detainment of Japanese nationals, the Government of Japan has urged early release of Japanese detainees on various occasions between Japan and China, including summit and foreign ministers' meetings, and, so far, five Japanese nationals have been released before being arrested, one Japanese national died of illness while serving the sentence, six Japanese nationals have returned to Japan after serving their sentences, and as of the end of 2024 five Japanese nationals are being detained (three of which are currently serving their sentence, and two are awaiting trial).

In March 2023, one Japanese national was detained in Beijing. The Government of Japan has strongly urged the Government of China to ensure early release of detained individuals; to increase transparency in law enforcement and judicial processes, including the reasons for detention under the revised Counter-Espionage Law; to appropriately protect the rights of Japanese nationals; and to ensure fairness and impartiality, as well as humane treatment. In 2024, the Government of Japan raised these issues with the Government of China at various levels and opportunities, including at the leader and foreign ministerial levels, such as the Japan-China Summit Meetings in October and November, the Japan-China foreign ministers' telephone call in September, and the Japan-China Foreign Ministers' Meeting in December, and will continue to persistently urge them to do so. Additionally, from the perspective of protecting Japanese nationals, the Government of Japan is providing as much support as possible, including consular visits and contact with family members.

In response to these successive cases of Japanese nationals being detained, the Ministry of Foreign Affairs of Japan, the Embassy of Japan in China, and the Consulates General of Japan in China have issued warnings on their websites urging Japanese residents to be aware that acts deemed to “endanger national security” are subject to investigation, and that they may not only be forced to spend long periods of time in detention, but may also face penalties such as imprisonment if convicted. Additionally, in response to the revised Counter-Espionage Law taking effect in July 2023, the content of the warning on the MOFA's Overseas Safety website has been updated to provide more detailed and specific warnings.

(Incidents of Attacks on Japanese School Children in Suzhou and Shenzhen)

In June, in Suzhou City, Jiangsu Province, a man attacked the school bus of the Japanese School of Suzhou while it was stopped at a bus stop, injuring a Japanese mother and child and killing a Chinese female attendant. In September, in Shenzhen City, Guangdong Province, a man attacked and killed a student from the Shenzhen Japanese School as the child was on the way to school. In both cases, the perpetrators were apprehended at the scene and, in January 2025, received death sentences at their respective trials.

In response to these deeply distressing incidents, the Consulate General of Japan in Shanghai and the Consulate General of Japan in Guangzhou provided support to those affected and to their families. At successive meetings at the leader and foreign ministerial levels, Prime Minister Ishiba urged President Xi Jinping and Premier Li Qiang, and Foreign Minister Kamikawa and Foreign Minister Iwaya urged Foreign Minister Wang Yi, to clarify the truth, including the motives; to take concrete measures to ensure the safety of Japanese nationals residing in China, especially that of children; and to take thorough and immediate actions against unfounded, malicious and anti-Japanese social media posts. MOFA, after securing the necessary budgetary measures, has also supported enhanced security measures at Japanese schools across China, including increasing security personnel on school buses, and Japanese embassies and consulates in China have worked with their respective local authorities to exchange information and strengthen cooperation to prevent recurrence.

Ensuring the safety of Japanese nationals traveling or residing abroad is one of the most important responsibilities of the Government of Japan, and it will continue to strongly urge the Chinese side to guarantee the safety of Japanese nationals in China and will advance necessary advisories and other measures.

(Abandoned Chemical Weapons Issue)

The Government of Japan, in accordance with the Chemical Weapons Convention (CWC), has been steadily working on the destruction of chemical weapons abandoned by the former Japanese military forces in China. In 2024, Japan carried out excavation, recovery, and destruction operations of Abandoned Chemical Weapons (ACW) in the Harbaling area of Dunhua City, Jilin Province, and destruction operations of ACW in Harbin City, Heilongjiang Province, and Wuhan City, Hubei Province. Additionally, Japan also carried out field surveys and the excavation and recovery operations of ACW in various other parts of China (as of December 2024 approximately 119,000 ACW have been destroyed).

(2) Taiwan

A Domestic Affairs and Economy

On January 13, 2024, Taiwan held presidential and legislative elections, and Vice President Lai Ching-te, an official candidate of the Democratic Progressive Party (DPP), won the presidential election with 40.05% of the vote. In the legislative elections, the Kuomintang (KMT) party gained 15 seats for a total of 52 seats, making it the largest party, while the DPP lost 11 seats for a total of 51 seats, and the Taiwan People's Party (TPP), which was formed in 2019, gained 3 seats for a total of 8 seats, but no party gained a majority. In addition, Ko Wen-je, chairman of the TPP, was arrested in August on suspicion of corruption, indicted in December, and resigned as chairman the following month.

The presidential inauguration took place on May 20, with Lai Ching-te becoming the 16th President. In June, President Lai announced three new bodies as part of Taiwan's development strategy: the National Climate Change Committee, the Whole-of-Society Defense Resilience Committee, and the Healthy Taiwan Promotion Committee.

Taiwan's economy is expected to see its annual real GDP growth rate rise from 1.31% in 2023 to 4.6% in 2024 (forecast), due to strong demand for AI and information and communications equipment.

B Cross-strait Relations and External Relations

From May 23 to 24, immediately following President Lai Ching-te's inauguration, the People's Liberation Army Eastern Theater Command of China conducted military exercises, code-named “Joint Sword-2024A,” around Taiwan Island as a “strong punishment for the separatist acts of ‘Taiwan independence' forces and a stern warning against the interference and provocation by external forces.” On May 26, China published “Opinions on Punishing Crimes of Separatism and Inciting Separatism by ‘Taiwan independence' Die-hards in Accordance with Law,” and then on May 30 announced that, effective June 15, it would cancel zero-tariff treatment on 134 items, including lubricants, under the Cross-Strait Economic Cooperation Framework Agreement (ECFA).

On September 25, China suspended zero tariffs on 34 agricultural and fishery products. Following this, on October 14, after the Double Ten Day celebrations in Taiwan on October 10, the PLA Eastern Theater Command held the “Joint Sword-2024B” exercises in the Taiwan Strait, as well as to the north, south, and east of Taiwan Island. According to Taiwan's Ministry of National Defense, a total of 153 Chinese military aircraft were confirmed around Taiwan, the highest number of aircraft confirmed in a single day to date.

From November 30 for one week, President Lai visited the Marshall Islands, Tuvalu, and Palau, nations that diplomatically recognize Taiwan, stopping in Hawaii and Guam while en route. Following his trip, on December 9, Taiwan's Ministry of National Defense announced that Chinese naval fleets and coast guard vessels had entered the Taiwan Strait and the Western Pacific and were engaged in activities such as long-distance navigation in blue water areas, although China had not announced any military exercises.

Peace and stability across the Taiwan Strait are important not only for the security of Japan, but also for the stability of the entire international community. Since 2021, including most recently at the G7 Apulia Summit, the G7 Leaders' Communiqués have consistently reaffirmed the importance of peace and stability in the Taiwan Strait and called for the peaceful resolution of cross-strait issues.

Taiwan was an observer at the World Health Organization (WHO) General Assembly from 2009 to 2016, but has not been able to participate since 2017. Japan has consistently asserted that there should be no geographical gap in responding to international health issues. From this perspective, Japan has consistently supported Taiwan's participation as an observer to the WHO General Assembly. The Apulia G7 Leaders' Communiqué mentioned for the first time in a G7 summit-level outcome document that “we support Taiwan's meaningful participation in international organizations, including in the World Health Assembly and WHO technical meetings, as a member where statehood is not a prerequisite and as an observer or guest where it is.”

In addition, the United States-Japan Joint Leaders' Statement issued at the Japan-U.S. Summit Meeting between Prime Minister Ishiba and U.S. President Trump on February 7, 2025, confirmed that “The two leaders emphasized the importance of maintaining peace and stability across the Taiwan Strait as an indispensable element of security and prosperity for the international community. They encouraged the peaceful resolution of cross-Strait issues, and opposed any attempts to unilaterally change the status quo by force or coercion. The two leaders also expressed support for Taiwan's meaningful participation in international organizations.”

C Japan-Taiwan Relations

For Japan, Taiwan is an extremely important partner and a valuable friend, with which it shares fundamental values and principles such as freedom, democracy, basic human rights and the rule of law, and enjoys close economic relations and people-to-people exchanges. The relations between Japan and Taiwan are maintained on the basis of working relations at the non-governmental level based on the 1972 Joint Communiqué between Japan and China. Following Taiwan's presidential election in January, Foreign Minister Kamikawa released a statement congratulating Taiwan on the smooth implementation of the democratic election and Lai Ching-te on his election victory, and approximately 170 people from Japan, including members of the Diet and friendly organizations, attended the presidential inauguration ceremony on May 20.

On February 24, the opening ceremony for Japan Advanced Semiconductor Manufacturing, Inc.'s (JASM) Kumamoto first plant was held, and in a video message Prime Minister Kishida announced the Government of Japan's support for a second plant, thereby demonstrating further progress in Japan-Taiwan cooperation in the semiconductor supply-chain sector.

On June 5, Japan lifted a ban on imports of Taiwanese dragon fruit (purple-fleshed and red-fleshed varieties), and on October 30, Japan lifted a ban on imports of Taiwanese Dragon-Tiger grouper, a luxury fish from Taiwan. In addition, Taiwan announced on September 25 that it would ease import restrictions imposed after TEPCO's Fukushima Daiichi Nuclear Power Station accident, thereby enabling the export of all foods distributed in Japan. On the other hand, import restriction measures such as the requirement to submit certificates remain in place. Japan continues to persistently urge Taiwan to lift these restrictions as soon as possible based on scientific evidence.

Japan and Taiwan both experience many large-scale disasters, and in the past have offered each other assistance when disasters occur. In 2024, when the Noto Peninsula earthquake occurred in Japan on January 1, the Taiwanese authorities donated 60 million Japanese yen in relief funds, and the people of Taiwan provided a great deal of support through special support accounts. In addition, when the Hualien earthquake occurred in Taiwan on April 3, the Government of Japan provided Emergency Grant Aid of 1 million U.S. dollars to the Taiwanese side through the Japan-Taiwan Exchange Association, and at the private level as well a great deal of relief money was collected and donated to the disaster-stricken areas.

In terms of people-to-people movements, while the number of overseas travelers from Japan is still recovering, the number of visitors from Taiwan to Japan reached 6.04 million, significantly exceeding the 4.98 million in 2019 and setting a new record high.

(3) Mongolia

A Domestic Affairs

Since around January, Mongolia has suffered extensive damage from the dzud (heavy snow disaster unique to Mongolia). Many people were affected, property damage occurred, and livestock animals, which are vital to the livelihoods of the nomads in the country, also died in large numbers. In response, the UN and many nations, including Japan, provided emergency assistance.

In June, the 9th State Great Hural (Parliament) general election was held under a system of both large electoral districts and proportional representation, with the number of seats significantly expanded to 126 due to constitutional amendments. As a result, the Mongolian People's Party, the ruling party before the election, won with an outright majority (68 seats), but the main opposition party, the Democratic Party, performed strongly and won 42 seats, and a third party, the HUN Party, also won 8 seats. In July, reappointed Prime Minister L. Oyun-Erdene called for the opposition parties to join the government, and formed a grand coalition cabinet consisting of the Mongolian People's Party, the Democratic Party, and the National Labour Party.

In August, the new administration formulated a government action plan for 2024-2028 under an agreement between the ruling coalition parties to cooperate to quickly and effectively resolve pressing issues related to social and economic development. Through this action plan, the Government of Mongolia set a total of 620 policy objectives, including the implementation of 14 mega infrastructure projects, with the aim of effectively implementing existing medium- and long-term development policies such as Vision 2050 and the New Recovery Policy.

B Foreign Policy

Mongolia, which is situated between China and Russia and increasingly dependent on both countries in terms of economy and energy, has long pursued a foreign policy of maintaining good relations with both countries as a top priority while at the same time maintaining a balance by strengthening relations with other countries, including Japan and Western countries, which it positions as its “Third Neighbors.”

In 2024 as well, the leaders of Viet Nam and Kazakhstan visited Mongolia in September and October, respectively, and President U. Khurelsukh, Prime Minister Oyun-Erdene, and Foreign Minister B. Battsetseg, each actively visited foreign countries and engaged in active dignitary diplomacy.

In terms of Mongolia's relations with its two neighboring countries, Russian President Putin and Chinese Vice President Han Zheng each visited Mongolia in September to mark the 85th anniversary of the victory in the Nomonhan Incident. Furthermore, in October on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Pakistan, Prime Minister Oyun-Erdene held a trilateral leaders' meeting between Mongolia, China and Russia to discuss cooperation among the three countries.

C Economy

In 2024, the Mongolian economy continued to record positive growth, with robust exports of mineral resources such as coal and copper to China. The inflation rate was 6.8%, more stable than in 2023. The economic growth rate in the third quarter of 2024 increased by 5.0% when compared to the previous year. In addition, Mongolia's trade value for 2024 increased by 3.9% in terms of exports and increased by 25.5% in terms of imports when compared to the previous year.

D Japan-Mongolia Relations

In regard to relations with Japan, high-level exchanges and dialogues continued in 2024. In addition, various anniversary events were held in both countries to mark the 50th anniversary of the conclusion of the Agreement on the Establishment of Cultural Relations between Japan and Mongolia. In response to the damage caused by the Noto Peninsula earthquake in January, the Government of Mongolia provided 100,000 U.S. dollars in aid, and many Mongolian citizens sent messages of support and condolences.

In May, Chairman of the State Great Hural G.Zandanshatar visited Japan to attend the 29th Nikkei Forum, “Future of Asia.” In addition, Prime Minister Kishida's planned visit to Mongolia, which was scheduled for August, was postponed due to the response to the earthquake in Japan, but he held a Japan-Mongolia Summit Meeting with President Khurelsukh during the UN General Assembly in September. At the meeting, the two leaders reaffirmed that the principles set out in the 2022 Joint Statement, such as maintaining and strengthening a free and open international order based on the rule of law, are becoming increasingly important amid the deepening of conflict and division in the international community. The two leaders also concurred to further strengthen and expand the cooperative relationship between the two countries, which are “Special Strategic Partnership for Peace and Prosperity,” in both political and economic areas.

In particular, with regard to bilateral cooperation and with a view to promoting economic exchange, in November the 11th Japan-Mongolia Government and Business Sector Joint Committee and the second meeting of the Sub-Committee on Cooperation established under the Japan-Mongolia Economic Partnership Agreement (EPA) were separately held in Mongolia. Furthermore, in December, the Agreement between the Government of Japan and the Government of Mongolia concerning the Transfer of Defense Equipment and Technology was signed in Mongolia.