Prime Minister Fumio Kishida’s rhetoric of distributing wealth more equally appears to signal a change of priorities for post-pandemic Japan that may run counter to plans to improve the country’s presence as an international financial hub.
Just 12 months ago, leaders in Tokyo were hoping to capitalize on Hong Kong’s troubles to win back lucrative banking business. China’s crackdown on Hong Kong created an opening for Japan, according to then Finance Minister Taro Aso. His boss, former Prime Minister Yoshihide Suga, pledged new tax breaks for financiers.
While Japan has some hope of using a green investment strategy to raise its profile among investors, the focus seems to have shifted toward what Kishida has billed as a new style of capitalism that reduces wealth inequality.