Japan-U.S. Investment Report

Booklet: Japan’s U.S. Investment Dynamic


OVERVIEW

The objective of Japan’s U.S. Investment Dynamic: Reflections on the Economic Contributions Made by Japanese Companies, is to provide a clear analysis of current economic data on the growth and valuable contributions made by direct investment from Japan into America’s economy. It will also provide insights, based on a series of JETRO’s business surveys, on how Japanese companies in the United States are managing through the COVID-19 pandemic.

A new and fresh way of thinking about the U.S.-Japan economic relationship must include the important topic of direct investment from Japan into the United States. Japan is #1, the leading source of foreign investment in America; Japanese companies as engines of job creation across America’s manufacturing landscape; and Japanese companies, as major contributors of U.S. exports are all facts that strengthen the very foundation of the bi-lateral relationship. JETRO’s Japan’s U.S. Investment Dynamic Report provides a new and more holistic perspective about the U.S.-Japan economic relationship in context of the tremendous contributions made by Japanese companies’ deep commitment to investing in America.


KEY FINDINGS OF THE JAPAN-U.S. INVESTMENT DYNAMIC


1) JAPAN: THE LEADING FOREIGN DIRECT INVESTOR IN THE UNITED STATES (2019)

  • In 2019, Japan was the foreign direct investment leader in the United States. Japanese direct investment in the U.S. reached a record level of $644.7 billion in 2019.




2) MANUFACTURING INVESTMENT IN THE UNITED STATES: JAPANESE COMPANIES EMPLOY 418,700 AMERICANS - A RECORD LEVEL OF GROWTH

  • By 2017, the total number of Americans employed by Japanese companies, 885,200 reached a historic high. U.S.-based manufacturing operations of Japanese companies employed 418,700 Americans which is the highest level among all investor countries



3) A RECORD LEVEL GROWTH OF U.S. EXPORTS BY JAPANESE COMPANIES IN AMERICA REACHED $95 BILLION IN 2017

  • Japanese-owned companies in the United States exported a record level of $95.3 billion in 2017, which was 6.2% of total U.S. exports. This amount of exports was the highest among all foreign investors. Japanese companies accounted for approximately 25% of all foreign company exports from the U.S.




4) U.S. BASED R&D EXPENDITURES BY JAPANESE COMPANIES ACHIEVED $8.8 BILLION IN 2017

  • Research and Development expenditures by Japanese companies in the United States achieved a new high of $8.83 billion in 2017, the highest among all G7 investor countries.




FULL REPORT
For the full report, please CLICK HERE (PDF, 4,744KB)

Video: Japan’s U.S. Investment Dynamic


This video features interviews with local government leaders who provide their perspective on the key role Japanese companies play in their local economies:

  • - Mayor Jim Lienhoop, City of Columbus (IN)
    - Deanna Kuennen, Community and Economic Development Director, City of Faribault (MN)
    - Deborah Scherer, Managing Director, Global Trade and Investment at One Columbus​​​ (OH)