Japan’s U.S. Investment Dynamic 2025

Understanding the Impact of Japanese Companies on the U.S. Economy

Japan’s U.S. Investment Dynamic: Reflections on the Economic Contributions Made by Japanese Companies is published to highlight key facts of the significant and growing economic contributions made by Japanese companies to the U.S. in terms of capital investment, employment, increased U.S. merchandise exports, and R&D spending. It is our hope that this information will deepen your understanding of Japan’s commitment to the U.S. economy.

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

1. JAPAN'S DIRECT INVESTMENT IN THE UNITED STATES WAS THE LARGEST AMONG ALL INVESTOR COUNTRIES IN 2023

Since 1990, Japanese direct investment in the U.S. economy has grown steadily. Total investment at the end of 2023 was $783.3 billion, ranking first among all investor countries, ahead of Canada ($749.6 billion), Germany ($657.8 billion), and the United Kingdom ($635.6 billion).

2. JAPAN'S DIRECT INVESTMENT: IMPACTING STATES ACROSS THE UNITED STATES

In 2022, Japan ranked in the top 3 in all 50 states for number of companies among all foreign investor countries. In fact, Japan was the #1 foreign investors in 40 U.S. states.

3. JAPAN HAS BEEN THE #1 EMPLOYER IN THE U.S. MANUFACTURING SECTOR FOR 16 CONSECUTIVE YEARS

In 2022, a record number of 968,700 Americans were employed by Japanese companies in all sectors of the U.S. economy, of which more than half are employed in manufacturing. A record number of 529,200 Americans were employed in U.S.-based Japanese manufacturing companies in 2022: an increase of 82.9% since 2010, or 239,800 more employees.

4. JAPAN HAS RANKED FIRST AMONG ALL INVESTOR COUNTRIES IN U.S. MERCHANDISE EXPORTS SINCE THE LATE 1990s

Japanese companies in the U.S. generated $82.3 billion in exports in 2022, a remarkable 4% of total U.S. merchandise exports. Since the late 1990s, Japanese investment in the U.S. has been the leader in generating U.S. merchandise exports among all foreign investors.

5. INNOVATION AND CREATIVITY: THE U.S. ECONOMY IS A R&D PLATFORM FOR JAPANESE COMPANIES

Direct investments from Germany ($12.8 billion) and Japan ($11.5 billion) have shown a very strong upward trend in R&D spending in the United States. Japanese R&D investment contributes to advancing U.S. innovation.

6. COMPARISON OF TOP U.S. FOREIGN INVESTORS

FULL REPORT

For the full report, please CLICK HERE (PDF, 5.99MB) 

Additional reading:
- Japan Stories: Voices from Representatives of U.S. Based Japanese Companies
- FY2024 JETRO Survey on Business Conditions for Japanese Companies Operating Overseas (North America)