Japanese Prime Minister Sanae Takaichi raises China concerns, signs agreements with Australia

Japan’s visiting Prime Minister has raised concerns about China’s military rise during discussions with Anthony Albanese in Canberra, before signing several economic and security agreements to help manage a “severe international environment”.

Australia on Monday detailed plans to provide support of up to $1.3 billion to critical mineral projects with Japanese involvement, as both nations pledged to work together during the deepening energy crisis sparked by the war against Iran.

Speaking alongside Mr Albanese in Parliament House, Sanae Takaichi said a global oil supply squeeze is inflicting an “enormous impact” on the Asia-Pacific region and both countries would respond urgently to secure stable energy supplies.

“The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific,” the so-called Japanese “Iron Lady” told journalists.

“We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency.”

Australia is the biggest supplier of liquefied natural gas to Japan, which in turn is a source for about seven percent of Australia’s diesel.

Over recent weeks Mr Albanese and Foreign Minister Penny Wong have stressed the government will introduce any new tax on existing gas exports, as Australia works to secure fuel supplies from Asian nations.

On Monday Japan and Australia signed four separate agreements, including statements on defence, energy and critical minerals cooperation and a joint declaration on “economic security cooperation”, which takes a veiled swipe at China.

“We express our strong concerns over all forms of economic coercion, and the use of non-market policies and practices that are leading to harmful overcapacity and market distortions, as well as export restrictions, particularly on critical minerals, that could have a significant negative impact on global supply chains,” the declaration says.

Following his first meeting with Ms Takichi on Australian soil, the Prime Minister declared the alliance with Japan had never been stronger, as both nations announced upgrades in defence and security ties.

“In a complex strategic environment, cooperation between Australia and Japan is essential to maintaining a peaceful, stable and prosperous region,” Mr Albanese said.

“Enhanced defence and security cooperation between Australia and Japan increases interoperability between our defence forces.”

“Our joint statement on energy security reaffirms our commitment to navigate the current energy crisis together and maintain open trade flows of essential energy goods, including liquid fuels and gas.”

Ms Takaichi declared that “amid the severe international environment, strengthening cooperation with our common ally, the United States is indispensable”, while confirming both leaders would seek to strengthen ties between all three nations.

“Anthony and I held the strategic discussions on issues beginning with China, Southeast Asia, Pacific Island countries, and responses to issues of nuclear and missiles and abductions of North Korea among others, which pertain to the Indo-Pacific situation, as well as the Middle East, including Iran.”

Last year Australia awarded Japanese company Mitsubishi Heavy Industries with a $10 billion contract for the construction of a fleet of general-purpose frigates for the Navy with the initial warships to be built overseas.

Takaichi’s trip marks the 50th anniversary of the NARA Treaty which began the formal bilateral relationship between Australia and Japan and was first championed by former Labor Prime Minister Gough Whitlam.