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Japan, the leading foreign investor in the US

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In 2021, Japan outpaced Germany, Canada, and the United Kingdom as the leading foreign investor in the United States.

Japanese investments represented 721 billion USD, a figure that actually tripled since 2009.

Japan essentially invests in the automotive parts and components sector, which represents 1/3 of the investments.

Among all the states where Japan has established a presence, Texas is the state where Japan holds the highest number of companies/affiliates. The number of employees even doubled, going from 34.400 in 2010 to 74.300 in 2020. If we look at it even more closely, Japan is actually the #1 employer in the Manufacturing sector compared to other investors, with a workforce of approximately half a million people.

It goes without saying that foreign investments are greatly contributing to the development of a country, but they also reinforce the link between them. In this case, Japan’s investments are a testament to the bond between the country and the US, showing that they trust each other enough to invest in the country not only financially, but also economically and on the human resources side.

Source: Japan External Trade Organization, 2023 “A New Look at the U.S.-Japan Economic Relationship and the Current Business Conditions of Japanese Companies in TX”, jetro.go.jp, April, 26th 2023, https://www.jetro.go.jp/usa/topics/japan-us-investment-dynamic-texas-2023.html