Citigroup-福田康夫内阁的中国经济政策 09.25

25 September 2007 6 pages

Equity strategy

China, environment plays under a Fukuda administration

 Hopes for Fukuda government higher than expected — Yasuo Fukuda’s
reputation could be greatly enhanced if he pushes forward a quick
improvement in relations with China and ensures the success of the Lake Toya
G8 Summit, which will be chaired by Japan and will focus on the important
global issue of environmental degradation.
 Fukuda cabinet approval above expectations? — An opinion survey by Asahi
Shimbun showed that 53% of respondents support Mr. Fukuda and 21%
support Taro Aso, while the Yomiuri Shimbun reported that 58% support Mr.
Fukuda and 22% support Mr. Aso. We expect Mr. Fukuda to be elected
president of the LDP at the September 23 election and be named head of
government by the Diet on September 25.
 Towards improving ties with China and other Asian countries — On visits to
Yasukuni Shrine, Mr. Fukuda said that it is not necessary to take actions that
others resent and that the issue needed bigger picture consideration. He said
that his vision for his administration is to engage in diplomacy based on Japan
being a part of Asia, and establishing an East Asian community.
 Promotion of environmental policies — Mr. Fukuda stated that he would strive
to ensure a successful Lake Toya Summit, with international contributions on
environmental technology and employee education. Japan offering
environmental technology to China following improved ties would be a big step
toward the summit’s success.