Tokyo, 22 August 2022 (TDI): In a recent tweet, the Ambassador of the United States to Japan, Rahm Emanuel, revealed that the United States had become the largest investor in Japan.
🇺🇸 & 🇯🇵 Partners for security, and partners for opportunity. New Commerce numbers show Japan is the largest source of FDI in the 🇺🇸 for the third straight year, and the US continues to be the largest investor in Japan. This is a partnership for prosperity. https://t.co/3ss3K7yYmi
— ラーム・エマニュエル駐日米国大使 (@USAmbJapan) August 22, 2022
The United States has been achieving this milestone as the largest investor in Japan for three consecutive years.
By the end of 2019, America’s Foreign Direct investment (FDI) in Japan was $120.91b and $121b in the year 2020
But in the next year the United States FDI decreased to $118.75b but remained as the largest investor in Japan.
The United States investments were concentrated in the sector of manufacturing, climate and infrastructure.
Furthermore, these investments created millions of jobs in Japanese companies.
The Ambassador congratulated Japan for being the largest source of Foreign Direct Investment (FDI) for the last three years in America.
Japan is one of the most successful democracies in the contemporary world and one of the closest allies to the United States.
Moreover, both countries have shown interest in maritime trade and defense by strengthening the bilateral relationship.
The United States FDI in Japan had increased following the political structure of liberalization.
Investment between the countries in the past:
After World War 2, the United States invested $2.2b to rebuild Japan destruction in the post-war period.
Relationships between Japan and America have strengthened since 1951, soon after World War 2.
Japan amended Foreign Trade Act in 1998 which made foreign investments free and open.
Secondly, these amendments resulted in increased FDIs in Japan due to barriers were lowered.
During Cold War, US technological sector and management in the Japanese business community overcome obstacles and achieved success.
Hence, the Leadership in both countries sees each other as great economic partners for investment and regional integration
