Japan to Adopt Growth Strategy Promoting Overseas Investment Despite Domestic Criticism

Japan’s government will adopt a new growth strategy this summer that promotes overseas investment by public and private sectors, Japan Times reported Thursday. The plan will position foreign direct investment as a core policy instrument to facilitate exports.

The strategy will seek to establish economic blocs with reliable partners by leveraging Japan’s goods and services under global trade rules and economic security cooperation frameworks.

It will encourage global investment for crisis management and growth as part of efforts to strengthen Japan’s technological competitiveness. The strategy will call for expanding exports of goods and services in which Japan has developed technological advantages through active investments in 17 fields, including artificial intelligence, semiconductors and aerospace.

It will expect capturing overseas demand to lead to greater business profits, stronger industrial foundations and stable foreign exchange rates.

In recent years, the government has been urged by some to prioritize domestic investment over foreign investment and to return more benefits from foreign investment to Japan. The industry ministry maintains that Japan’s exports to its investment partner countries and regions are increasing and that domestic returns from its foreign investment are not lower than in Europe and the United States.

The United States and China are actively using foreign direct investment to boost their presence in rapidly growing Southeast Asia, pressuring Japan to advance its own strategy.