“Japanese companies’ sales are expected to increase and business to expand… Continued close cooperation with the U.S.”
(Tokyo = Yonhap News) Correspondent Park Sang-hyeon and Kyeong Su-hyeon report that Japanese Prime Minister Sanae Takaichi stated that the first project, as part of a $550 billion investment in the U.S. promised under a trade agreement with the United States, has been determined and will lead to strengthened ties by establishing a supply chain between Japan and the U.S.
Prime Minister Takaichi mentioned on her X (formerly Twitter) account that both countries agreed on the ‘Strategic Investment Initiative’ first project based on Japan-U.S. customs negotiations, highlighting its significance.
She introduced the first U.S. investment projects as three: manufacturing artificial diamonds, exporting American crude oil infrastructure, and gas-fired power generation.
Regarding artificial diamonds, she noted that both Japan and the U.S. are highly dependent on a particular country, using them in automobiles, airplanes, semiconductor parts, and material processing. This particular country is understood to be China.
In relation to American crude oil, she explained that global energy demand is increasing, and gas-fired power generation will supply power to AI data centers, among others.
Prime Minister Takaichi emphasized that these projects create a supply chain and strengthen ties by Japan and the U.S. cooperating in strategically important sectors such as critical minerals, energy, and AI/data centers.
She anticipated that Japanese companies would see increased sales through the supply of related equipment and devices and that business would expand, viewing the U.S. investment projects as promoting mutual benefits for Japan and the U.S., securing economic security, and fostering economic growth.
She added that details for each project will be coordinated, and efforts will be made to implement the projects smoothly in the early stages through continued close cooperation with the U.S.
The overseeing Ministry of Economy, Trade, and Industry, in its press release, described the three selected projects for the U.S. investment as establishing a supply chain in important strategic sectors and stated that business expansion for Japanese companies through the supply of equipment and devices is anticipated.
In the crude oil export infrastructure project, companies like Mitsui O.S.K. Lines, Nippon Steel, JFE Steel, and Mitsui E&S have shown interest in equipment supply. For the gas-fired power plant project, companies such as Toshiba, Hitachi, Mitsubishi Electric, and SoftBank Group have expressed interest.
Furthermore, in the artificial diamond business, companies like Asahi Diamond Industrial and Noritake have shown interest in purchasing future production, according to the Ministry of Economy, Trade, and Industry.
Funding for these project initiatives will be provided based on investments from Japan’s public financial institutions, JBIC, and loan guarantees from Nippon Export and Investment Insurance (NEXI), while the U.S. will contribute tangible assets like land.
Former President Donald Trump also announced the three initial Japanese U.S. investment projects via social media platform Truth Social.
He expressed pleasure in announcing the three vast projects in strategic domains like oil and gas in Texas, power generation in Ohio, and critical minerals in Georgia.
U.S. Commerce Secretary Howard Rutnick stated that the investment scale for these projects amounts to $36 billion.
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