In order to reach a tax agreement with the United States, Japan's Minister of Economic Regeneration Ryota Akaze recently announced that Japan allows a US$55 billion investment plan. The specific structure of this plan is still unclear, but Japan's financing of the investment plan for the United States is not limited to the United States or Japanese companies. Taking the example of Taiwanese chip manufacturers going to the United States for equipment, they can obtain financial assistance as long as they use Japanese components.
Ryomasa Akazawa said that the trade agreement reached between Japan and the United States contained a $55 billion investment plan. The government has agreed to this comprehensive investment plan for the United States, covering equity investment, loans and guarantees to exchange for the Chinese government's taxes on Japanese imports. However, the specific structure of the plan is still unclear.
Ryoma Akazawa pointed out that Japan, the United States, and other like-minded countries are working together to create a major industry supply chain for economic and security. Therefore, Japan's investment plan for the United States is not limited to the United States or Japanese companies. For example, if a Taiwanese chip manufacturer goes to the United States to factory, as long as it uses Japanese parts, or its products are tailor-made according to Japanese needs, it can receive financial assistance.
Japan will conduct this investment plan through the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI), which has recently revised the law to provide financial assistance to foreign companies that are recognized as linkages to Japan.
Kaizawa Liang emphasized that this investment plan of US$55 billion, with equity investment accounting for only about 1% to 2%, which means that most of the funds will be provided in the form of loans and guarantees. Japan originally hoped to obtain 50% of the investment compensation, but in the overall agreement, the tax costs of about 10 million Japanese dollars (about US$67.7 billion) could be avoided, which would make profit losses relatively small, and would complete investment during Trump's term.
Japan’s $550B investment could back Taiwan chip plants in US, say trade official
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