February 2, 2017 – asia.nekkei.com
TOKYO — Infrastructure investments in the U.S. by Japan’s Government Pension Investment Fund will feature heavily in the economic cooperation package to be discussed at next week’s summit in Washington between the two countries’ leaders.
The goal is to create hundreds of thousands of American jobs, in keeping with U.S. President Donald Trump’s agenda, and deepen ties between the two countries.
“I wish to discuss [Japanese] contributions toward improved productivity and competitiveness in the entire U.S. industrial sector, or a large framework that includes aid for infrastructure development,” Abe told members of the lower house Wednesday. His government has started to lay out a comprehensive initiative addressing job growth.
The GPIF will purchase debt issued by American corporations to finance infrastructure projects. Up to 5% of the roughly 130 trillion yen ($1.14 trillion) in assets controlled by the megafund can go toward overseas infrastructure projects. Currently, only tens of billions of yen are invested in that asset class, leaving room for expansion. Long-term financing for high-speed rail projects in Texas and California would be provided through such avenues as the Japan Bank for International Cooperation.