The Japan-China summit

The Japan-China summit meeting took place for the first time in two and a half years. It was one of the most meaningful recent events. I hope that the Japan-China relations will develop through increasing dialogues and consultations.

Not only economic factors but also the political and diplomatic relations have affected business between the two countries. Under these circumstances, the top-level meeting was held today marking a big step towards the improvement of the bilateral relations.

The business community will work harder to enhance and expand the economic relationship.

The tax system

The business community has asserted that it is possible to reduce the corporate tax rate by around 3 %. Economy, Trade and Industry Minister Miyazawa unveiled today a target of reducing the rate by 2.5 points or more starting next fiscal year. I hope the very encouraging statement will come true. I think the pro forma standard taxation can be reviewed to a reasonable extent.

It is mandatory to raise the consumption tax rate as planned to restore fiscal soundness and ensure the sustainability of social security system despite of inevitable pain to the people.