Japanese Companies in U.S. cautiously Optimistic about Biden Presidency

By Yasuaki Kobayashi / Yomiuri Shimbun Correspondent

13:51 JST, January 25, 2021

NEW YORK — According to a survey of nearly 630 Japanese companies operating in the United States, 53% of respondents said they expect a positive impact from Joe Biden’s victory in the U.S. presidential election.

The Japan External Trade Organization (JETRO) survey, conducted in early January, sought to gauge companies’ outlook on the results of the recent U.S. presidential and congressional elections.

As examples of anticipated positive impact, 57% of respondents were optimistic that President Biden would roll back the work visa restrictions that had been tightened during the tenure of former President Donald Trump. Trade policy was the second-most cited topic, with 50% of companies anticipating that the nation’s stance on trade would be easier to predict under the new administration.

But companies were split on the issue of environmental and energy-related policy. Although some respondents hoped that increased infrastructural investment would expand business opportunities, many companies said they were concerned that stricter regulation under the Democrat may drive up costs.

When asked about the potential direct impact on each company’s own operations, 61% of respondents said they are closely monitoring Biden’s campaign pledge to raise corporate taxes.

On the foreign policy front, 48% of respondents said they will watch the new administration’s stance on China.