Japan's Upper House Passes Sub-Capital Bill by Two Votes, Candidates Include Osaka, Fukuoka, Aichi, Hokkaido
Japan's House of Councillors passed the sub-capital concept bill on July 24, 2026, by a vote of 123 to 121, a margin of just two votes. The law opens the door for designating a secondary capital but leaves the location undecided; prefectures must apply, with the prime minister deciding based on cabinet order criteria. A July 10 ministry report cited submarine cable landing concentration risks in Chiba and Mie and recommended diversifying routes. Osaka, Fukuoka, Aichi, and Hokkaido are seen as candidates.
The sub-capital concept bill was passed and enacted at the House of Councillors plenary session on the evening of July 24, 2026, by a vote of 123 in favor and 121 against, a margin of just two votes. The law is intended to open the door for the "sub-capital" concept, though no specific location has yet been designated. Under the provisions, candidate sites must be proposed by prefectural governments, with the prime minister making the final decision based on criteria set by cabinet order.
Earlier, a review committee report released by the Ministry of Internal Affairs and Communications on July 10, 2026, noted that submarine cable landing points supporting international communications are currently concentrated in the Boso region of Chiba Prefecture and the Shima region of Mie Prefecture. In preparation for disasters such as a Nankai Trough megathrust earthquake, the report called for diversifying cable routes and dispersing landing stations to regional areas.
At present, in addition to Osaka, Fukuoka, Aichi, Hokkaido and other locations are viewed as candidate regions.
Why this event matters
The event has a measured impact on 2 industrys. The strongest current signal is mixed for Telecom Operators, with intensity 40/100 and 60% confidence over a medium term horizon.
Telecom Operators
- Direction
- mixed
- Intensity
- 40
- Confidence
- 60%
- Horizon
- Medium term
Network Equipment
- Direction
- mixed
- Intensity
- 35
- Confidence
- 55%
- Horizon
- Medium term
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.