Japan’s US Investment Package to Create 700,000 US Jobs
Japan is putting its “hand up” for an investment package it says could generate 700,000 US jobs and help create a $450-B market, to present to US President Donald Trump this week, government sources familiar with the plans said.
The 5-part package, to be unveiled when Prime Minister Shinzo Abe visits President Trump on 10 February in Washington, DC, envisage investments in infrastructure projects such as high-speed trains and cybersecurity, said the sources, who declined to be identified as they were not authorized to speak to the media.
Investing in overseas infrastructure projects dovetails with a Key plank in Abe’s growth strategy, which is to export “high-quality” infrastructure technology.
Japan will invest JPY17-T ($150-B) in public and private funds over 10 years, the sources said. That would include helping develop high-speed railways in the northeastern United States, and the states of Texas and California, and renovating subway and train cars.
The package also includes cooperation in global infrastructure investment, joint development of robots and artificial intelligence, and cooperation in cybersecurity and space exploration, among others.
The government may tap its foreign exchange reserves account to fund part of the package, the sources said.
It may also get funding from megabanks and government-affiliated financial institutions, as well as the Government Pension Investment Fund, the Asahi and other newspapers reported.
However, GPIF President Norihiro Takahashi said on Thursday there was no truth to reports that the Fund would invest as a part of the government package, adding that the Fund made its investment decisions to benefit policyholders.
Have a terrific week.
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