Remember Japan’s commitment of investing $550 billion into core industries in the United States? The two great nations had a high-level meeting in Washington and they agreed to speed up the selection of the first round of investment projects under the multi-billion Dollar package before they are sent to US President Donald J. Trump for approval, according to a news report by Kyodo News.
To put things in perspective, posted below is an excerpt from the news report of Kyodo News. Some parts in boldface…
Japan and the United States agreed Thursday to speed up selection of the first round of investment projects under a $550 billion package that Tokyo committed to last year following months of tariff negotiations, with a summit of their leaders about a month away.
Hours after his meeting with U.S. Commerce Secretary Howard Lutnick in Washington, Japanese industry minister Ryosei Akazawa told reporters a “significant gap” remained and more coordination was required to serve the mutual interests of the two countries.
“In conducting negotiations, we are naturally keeping in mind the goal of making Prime Minister (Sanae) Takaichi’s visit to the United States a fruitful one,” he said.
Akazawa’s meeting with Lutnick was believed to be part of last-ditch efforts to sort out the first batch of Japanese investment projects to be carried out in the United States, before they are sent to President Donald Trump for final approval.
Although Akazawa, who serves as economy, trade and industry minister, said there was some progress, neither side could unveil any specifics. While refusing to elaborate, he suggested differences remained over interest rates and business risk assessments.
“In a nutshell, as far as we are concerned, high-risk, high-return (investments), given that they also involve taxpayers’ money, are not something we are interested in,” he said.
The meeting with Lutnick took place a week after Trump said he would welcome Takaichi to the White House on March 19.
Under a trade deal struck in July last year, Japan has committed to investing $550 billion in the United States by the end of Trump’s second term in January 2029, in exchange for his administration reducing tariffs on Japanese cars and other goods.
The massive figure represents a combination of investments, loans and loan guarantees from Japanese government-backed financial institutions.
Japan and the United States have agreed that the forthcoming investments will focus on strategic sectors, such as critical minerals, semiconductors, artificial intelligence and energy, to support their national security interests and economic objectives.
For the initial tranche of investments, the construction of gas-fired power generation facilities for data centers, the production of synthetic diamonds used in the semiconductor industry and the development of a port are among the leading candidates, according to Japanese officials.
The memorandum of understanding between Japan and the United States, signed by Akazawa and Lutnick in September last year, stipulates that Trump will ultimately select projects recommended by an “investment committee” chaired by the commerce secretary and composed solely of U.S. officials.
Earlier in the process, the so-called consultation committee — comprising officials from both countries — is tasked with identifying potential investment projects.
The United States will forward investment projects that gain Trump’s endorsement to Japan for review, with Tokyo given 45 days to respond and transfer the necessary funds to Washington.
Let me end this piece by asking you readers: What is your reaction to this development? Do you think the two nations will reach an agreement over the first round of investment projects under the $550 billion package? Do you think the remaining challenges will be resolved in due time? Are you looking forward to Prime Minister Takaichi’s Washington visit and meeting with President Trump this March?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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