On December 16, 2012, the Liberal Democratic Party (LDP) of Japan won a landslide victory in the poll of the election of House of Representative. This victory has increased the seats of the LDP from 119 to 294 seats and brought the LDP back to power. Does the result imply that the Japanese people restore their faith in the LDP? Will the comeback of Prime Minister Shinzo Abe with his diplomatic and security policies, as predicted by foreign press, impact tremendously on the East Asian regional security, due to the Abe cabinet’s right-wing tendency? This article aims to analyze internal and external issues and challenges faced by the Abe cabinet from the political, economic, and diplomatic and security perspectives. Based on the percentage of votes it received, the LDP won only passive support from the voters, which means the LDP must satisfy the critical demands and expectations of the voters on economic issues in a short time in order to win the poll of the election of House of Councilors this summer and to consolidate its political power. Next, faced by the rising economic and military power of Mainland China and challenges posed by issues like the disputes over Diaoyutai/Senkaku Islands in particular, the Abe cabinet, based on the strong foundation of the U.S.-Japan alliance, will work to unite the neighboring democracies to establish a hedging or rebalancing strategy towards China.