This is fascism. Fascism is a means of organizing an economy where the government allows private ownership of the means of production while the government suspends the rule of law and forces corporations to bend to the government’s whims.
Japan is officially a dirigiste economy, not that different from the rest of the developed world. Dirigiste economies regularly divert resources away from rational use and to that which the government favors through subsidies, regulations, cronyism, etc. A dirigiste economy can be described as fascism light as there remains a semblance of the rule of law.