Japan’s finance ministry announced on Friday that it would establish an investment facility within a state-owned development bank to assist a $550 billion investment package that has been agreed in a tariff deal between Tokyo and Washington.
This month, Japan and the United States signed a memorandum of understanding on the contents of the package that it will concentrate on investments in such areas as chips, metals, pharmaceuticals, energy, and shipbuilding to be completed by January 2029, when the presidential term of Donald Trump ends.
The investment package in Japan would consist of equity, state-owned Japan Bank of International Cooperation (JBIC), and Nippon Export and Investment Insurance (NEXI).
The ministry reported that the new facility at JBIC would offer financial assistance to overseas expansions by Japanese companies in sectors of strategic economic security to Japan.
The ministry also announced that it amended JBIC regulations to increase the range of its investment in developed countries, such as the automotive and pharmaceutical industries.
The former regulations restrict JBIC in its scope of investments in developed countries to some specific sectors in relation to emerging countries.
