Japan, US Narrow First $ 550 Billion Investment Picks
According to reports, Japan and the US have identified several projects as initial contenders for Tokyo's intended $550 billion investment aimed at the US, including one associated with SoftBank Group.
The two administrations have ramped up talks to choose the first projects under the investment program, which was established as part of Tokyo’s arrangement with Washington to reduce duties on Japanese exports to the U.S.,as per reports.
According to sources who spoke on condition of anonymity due to the private nature of the discussions, they intend to finalize the initial project before Prime Minister Sanae Takaichi's anticipated trip to the United States in the spring.
Reports indicate that a significant infrastructure initiative featuring SoftBank Group in the construction of data centres is included in the list of shortlisted projects.
Japan's investment initiative would encompass equity, loans, and loan guarantees from government-backed institutions such as the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).
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Japan and the U.S. have conducted four meetings of the consultation committee since December to explore possible projects, incorporating the U.S. Department of Commerce and Department of Energy, and from Japan, the ministries of foreign affairs, finance, and industry, as well as JBIC and NEXI.
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Discussions have commenced with major Japanese banks, which may partner with JBIC to fund the projects, the sources mentioned.
Following input from the consultation committee, the investment committee chaired by the U.S. Secretary of Commerce will provide recommendations to President Donald Trump, who will ensure the final decision.
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As a U.S. Supreme Court decision on the legality of Trump's global tariffs approaches, Tokyo has announced its intention to move forward with the investment initiative no matter the result, stating it aims to collaboratively develop essential supply chains and provide advantages to both nations.