Japanese Firms Bullish on US Investments Amid Supply Chain Concerns
Davos, Switzerland - Japanese companies are optimistic about continuing investments in the United States but acknowledge the need to mitigate potential supply chain risks under the Biden administration.
Takeshi Niinami, CEO of Suntory Holdings and head of Japan's largest business lobby, emphasized the importance of demonstrating that investments will create American jobs.
A recent survey revealed that Japanese firms operating in the U.S. anticipate new tariffs. "Tariff imposition could cause major disruptions in supply chains," Niinami stated. "Japanese companies must be adaptable to navigate these changes."
Despite the trade surplus between Japan and the U.S., Niinami believes Japan's military expansion through American weapons purchases may alleviate tensions.
Niinami, a prominent executive, expects the potential revival of Nippon Steel's $14.9 billion bid for U.S. Steel, which was blocked by Biden. He suggests Nippon Steel's argument of strengthening against China and revitalizing U.S. industry may influence the decision.
Meanwhile, Suntory is reassessing investments in China due to market concerns and is keen on expanding in India through partnerships and manufacturing. "We aim to have a significant presence in India," Niinami declared.