Japan’s Plan for Investment in U.S.: Aim for Mutual Development by Ensuring Profitability

The Japanese and U.S. governments have started final discussions about the content of the first round of projects under a plan for $550 billion (about ¥84 trillion) in investments in the United States that Tokyo has pledged to make.

It is important to select projects that will lead to the mutual development of both countries, while taking thorough steps to ensure the projects’ profitability.

Japan’s Economy, Trade and Industry Minister Ryosei Akazawa visited the United States last week and agreed with U.S. Commerce Secretary Howard Lutnick to accelerate negotiations on the matter. They are keeping in mind their aim of reaching an agreement on the projects before the Japan-U.S. summit scheduled for March 19.

The Japanese side promised during Japan-U.S. tariff negotiations to make massive investments in the United States in exchange for Washington lowering tariff rates.

From the perspective of strengthening economic security, the primary aim is for Japanese companies to cooperate in revitalizing the U.S. manufacturing industry. Amid the increasingly severe security environment, strengthening supply chains with allied nations is significant.

The European Union and other countries and regions have also promised to invest in the United States. Japan’s first projects will likely serve as model cases for them.

Three projects are reportedly leading candidates for the first round.

The prime candidate among the three is a project for gas-fired power generation. This is because the construction of data centers intended for artificial intelligence is rapidly advancing in the United States, and a significant increase in electricity demand is expected there.

Japanese companies have strengths in gas turbine manufacturing. It is hoped that the two countries will establish a constructive cooperative relationship.

The development of crude oil shipping ports is also a candidate. Washington is urgently building port facilities capable of accommodating large tankers to export crude oil.

If Japan’s cooperation leads to increased crude oil exports to Japan, this would also contribute to strengthening its energy security.

The establishment of new factories that produce synthetic diamonds, which are essential to the semiconductor manufacturing process, is also under consideration. It is hoped that this will help counter China, which is a strong competitor, and ensure stable supply in both Japan and the United States.

The Japanese side would provide the funds for these respective projects under a framework in which the Japan Bank for International Cooperation (JBIC) and other entities would provide investment, loans and loan guarantees. If massive losses occur, taxpayers’ money will ultimately be lost, resulting in a heavy burden on them.

It is crucial for both Japan and the United States to cooperate and carefully assess such factors as profitability, the future prospects of the projects and the market environment.

JBIC’s outstanding loans and equity participation exceeded ¥15 trillion at the end of the last fiscal year, and the bank has limited experience handling projects on such a massive funding scale. Expanding personnel and organizational structure will be essential.

U.S. President Donald Trump, who is frustrated with delays in South Korea’s investment plan in the United States, has informed Seoul that tariffs will be increased. It is difficult to predict the U.S. side’s approach, so it is hoped that Japan will carefully proceed with the negotiations.

(From The Yomiuri Shimbun, Feb. 18, 2026)