The Japanese Ministry of Foreign Affairs announced on December 18 that the first meeting of the consultative committee regarding Japan's investment in the United States, which amounts to 550 billion dollars (approximately 813 trillion won) and is a key element of the US-Japan trade negotiations, was held.
The meeting was conducted online, with participants from the United States including officials from the Department of Commerce and the Department of Energy, and from Japan including representatives from the Ministry of Foreign Affairs, Ministry of Finance, Ministry of Economy, Trade and Industry, Japan Bank for International Cooperation (JBIC), and Nippon Export and Investment Insurance (NEXI).
US President Donald Trump (left) and Japanese Prime Minister Sanae Takaichi. Photo by Getty Images Yonhap News
The Ministry of Foreign Affairs stated that the participants exchanged views on potential projects for investment attraction through the online meeting and confirmed their commitment to maintaining close cooperation.
In July, Japan concluded trade negotiations with the United States, agreeing to lower tariffs from 25% to 15% in exchange for investing 550 billion dollars in the United States. At the beginning of September, both sides signed a memorandum of understanding on investment, and at the end of October, President Donald Trump of the United States and the Japanese side each released a fact sheet related to the investment during Trump's visit to Japan.
However, the United States and Japan still have differences regarding the specific investment items.
Bloomberg News explained that this meeting signifies the official start of the investment selection process. After discussions, opinions will be submitted to the Investment Consultative Committee led by US Secretary of Commerce Howard Lutnick, and based on the committee's recommendations, President Trump will make the final selection of projects.
This investment aims to promote economic and national security interests by investing in sectors such as semiconductors, critical minerals, and energy. According to Bloomberg News and others, the energy sector is being considered as a candidate for Japanese investment, and the first investment proposal may be presented to President Trump as early as the beginning of next year.
Secretary Lutnick stated in an interview with Nikkei in October that more than half of Japan's investment in the United States could be in the fields of electricity and energy development.
Nikkei reported that Japanese companies are being considered to provide equipment necessary for power generation, such as gas turbines and transformers, and explained that this equipment could be used to strengthen power generation capacity in the United States, which is becoming increasingly important due to the rapid spread of artificial intelligence (AI). The report also noted that a key focus of the consultative committee's discussions will be whether Japanese financial institutions and companies can carefully select projects that ensure profitability.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
