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Japanese Prime Minister Sanae Takaichi is set to deliver a policy address today, during which she is expected to describe China as an "important neighbour" and express her commitment to building a stable relationship with Beijing, according to media reports. Tensions between the two nations have been at an all-time low since Takaichi suggested in November that Japan might intervene in any attack on Taiwan, a territory claimed by Beijing.

In her speech, Takaichi may also outline a comprehensive plan to address Japan's declining population, which she will describe as a "quietly advancing national crisis." Despite her high approval ratings, the prime minister is facing challenges such as rising inflation, concerns over the country's mounting debts, and a diplomatic dispute with China that has persisted since her controversial statements about Taiwan last year.

Takaichi's policy speech comes after a meeting between China's top diplomat and a former Japanese foreign minister in Beijing, where ties between the two nations were reportedly "waiting to be normalized again." The government recently reported that Japan's population had dropped below 120 million for the first time in 42 years.

In addition to her remarks on China and population decline, Takaichi is expected to reaffirm her commitment to a proactive fiscal policy amid market concerns over the expansive government spending program that has unsettled investors. The speech will mark the beginning of a parliamentary session that will run through December and will cover various bills, including a proposal to temporarily reduce a consumption tax on food to alleviate the burden of inflation on consumers.

Furthermore, the premier will pledge to support the International Criminal Court, following the United States' imposition of sanctions on Japan's President, Tomoko Akane, in August.