Nipponica

It is the first time since June last year for Japan to be on the "monitoring" list. In its biannual report to Congress, the department also placed six other economies on the list -- China, Germany, Malaysia, Singapore, Taiwan and Vietnam.

Back on the naughty step.

In simplest terms, Japan’s problem is sclerosis. The country’s economic policymakers have opted for stability, halting the “creative destruction” that promotes innovation and delivers prosperity. “Among all rich countries, it is Japan where new companies find it hardest to get the external funding that is needed for growth. Consequently, the birth and death rate of companies has plunged and is now one of the lowest among 27 rich countries.”

A book review of The Contest for Japan’s Economic Future by Richard Katz. In my own personal experience in the country, this tendency towards risk-aversion and stability is very real.

Australia's Qantas Airways has joined a number of carriers forgoing scheduling flights to and from regional Japanese airports as Japan faces a ground airport staff shortage and an acute fuel shortage also looms.

Earlier this year, Qantas had been assessing recommencing seasonal flying to Sapporo for the next ski season in Hokkaido in the north. But a specific plan did not materialize due to supplier constraints at the airport, including labor shortages. Qantas had discussions with local airport stakeholders but did not enter the government filing process, and thus did not schedule any flights.

The article cites closing domestic oil refineries and trucker shortages as the reasons for these decreases in service. Once those are addressed, one would hope that these carriers return, but there is no guarantee. For Sapporo and other destinations in Hokkaido especially, it would be a huge blow to tourism and connectivity for residents.

Japanticket Inc., one of the partners in the project, said it started to sell tours in which travelers will fly on HondaJets to Toyama, Hiroshima and Yamaguchi prefectures. These tours are aimed at foreign tourists, with ticket prices starting at 1.5 million yen ($9,500) per person.

Definitely out of my price range and definitely not the market for the common traveler. But this could be a first step to build out a domestic aircraft manufacturer that could complete with some markets.

Tanegashima, closer to Shanghai and Seoul than Tokyo, has fewer than 30,000 people and is best known as the home of Japan's answer to Cape Canaveral, the rocket launch center of the Japan Aerospace Exploration Agency (JAXA). The next launch is scheduled for June 30.

But with launches few and far between, the center hasn't spawned a broader industrial base, leaving fishing and sugarcane farming by an aging workforce as the backbone of the island economy. With Japan's fertility rate at a record low, speeding population decline, success in regenerating Tanegashima's economy could serve as a blueprint for regions across the country seeking rural revival.

Communities across rural Japan are experimenting with many different models on how to pull people in and have them stay. The JAXA draw for Tanegashima could be huge but there does looks to be a lack of investment on their part to assist the island to grow.

The digital nomad angle could work but it is still quite remote for many. And then there is the marketing problem. How does such a small island promote itself out in the wider world? A difficult proposition but hoping they will find success.

People living in Japan will likely recognize "Hotaru no Hikari," a song based on the Scottish folk song "Auld Lang Syne" which has become the standard tune played at shops in the country just before closing. Outside Japan, the folk song is often sung by crowds who gather on New Year's Eve to mark the turn of the year.

"When 'Hotaru no hikari' plays, Japanese people understand that it is time to close the store. However, in recent years, the number of foreigners has increased, and more people are present who do not understand its meaning. It's difficult to announce that the store is closing without spoiling the enjoyment of shopping. Therefore, we have come up with new closing music that casually announces the closing, but still allows shoppers to leave comfortably."

This is classico Japan taking an element from overseas and transforming it into something befitting local culture.

Japan's restaurant industry is deploying a two-tiered pricing system in tourist spots as eateries look to cash in on an influx of foreign visitors without alienating local customers.

Compared with the castle pricing for tourists below, I do have a problem with this if it starts to become common outside of tourist areas. For foreign residents wanting to have a meal, an identity check should not be part of the ordering process.

"We would like to charge around $30 for foreigners and around $5 for residents," Kiyomoto said at the symposium on cultural heritage and natural disasters.

When asked about his reason for the $5 fee, Kiyomoto told reporters Monday that he wants "to avoid raising the admission fee for local residents."

For cultural sites like castles, I think a higher admission fee could be appropriate for certain tourists from higher wealth countries. But grouping all tourists in a single high-cost bucket is unfair for people from less developed nations. But the challenge is obvious in devising a pricing strategy like this. You can't expect a passport check at a ticket window.

A once-bustling shopping district in the city of Gifu which boasts a 135-year history and inspired a hit song that defined its heyday will see the withdrawal of department store mega-chain Takashimaya Co. at the end of July.

Takashimaya's departure from the Yanagase shopping arcade in the central Japan city is a portent of a more worrying trend sweeping the country, as commercial districts that have coexisted with major department stores lose customers amid Japan's declining birthrate and aging population.

I have seen multiple shopping arcades fall into disrepair around Japan in recent years and it really is a sad loss. There are still many that are vibrant, but the rural areas are hit the hardest.

Japan's parliament on Friday enacted revised laws to replace the controversial foreign trainee program, which has been criticized as a cover for importing cheap labor. Japan seeks to ensure foreign workers will stay on longer in a bid to address an acute labor shortage in a rapidly greying society.

Under the new system, workers will be able to move after working in a job for one year provided their Japanese language and professional skills meet certain requirements.

Businesses in Japan that employ immigrant labor are getting a wake up call and hopefully exploitative practices start to die out. Props to the national government for passing immigration reform for this classification of visa but there is still work to do to raise all workers up to a better overall standard wage to catch up to the rest of the world.