Even in Financial Anxiety, Foreign Direct Investment is Necessary to Keep the World Economy Going | Print |
Welcome Remarks
  • The Honorable Patricia M. Haslach, U.S. Ambassador to Asia-Pacific Economic Cooperation (APEC)
  • Mr. Makoto Shiota, Deputy Director-General for International Regional Policy, Trade Policy Bureau, Ministry of Economy, Trade and Industry (METI)

Ambassador Haslach began the event with welcome remarks from the U.S. government and shared that the Symposium is a product of the U.S.-Japan Investment Initiative established by President Bush and Former Prime Minister Koizumi in 2001. The objective of the Initiative is to identify, reduce, and remove barriers to cross-border investment. In regards to Japan to U.S. investment, as is the focus of the Symposium, the Initiative has been a success so far, as Japan’s stock of foreign direct investment has more than doubled since the start of the Initiative, reaching over $150 billion at the end of 2007. Addressing the current economic anxiety, Ambassador Haslach emphasized that while there may be a tendency to shelve investment overseas during times like these, it is important to “keep our economies open.” Considering the strong relationship between the U.S. and Japanese economies, it is more important than ever to continue cross-border investment to support the growth of both economies. For the U.S. government, this Symposium is an important tool for engaging stakeholders to make good policy decisions and maintain ongoing dialogue about overseas investment.

After giving welcome remarks from the Japanese government, Mr. Shiota also highlighted how deeply connected our global economies are, noting the current financial problems have also affected Japan. But while the more negatives aspects of globalization have received more attention recently, countries around the world must work hard to “minimize the negative aspects while trying to extract the utmost benefits.” Noting that foreign direct investment (FDI) is “an indispensable means of economic growth, not only for developing but also developed countries as well, including Japan and the United States,” Mr. Shiota stated the Japanese government is still working toward its target to increase FDI in Japan to close to 5% of GDP by 2010, which is double the current ratio. As is one of the points of the Symposium, while many foreign companies establish their office in Tokyo, he encouraged attendees to consider other areas as well, as many good investment environments are often overlooked. For companies thinking of expanding to Japan, Mr. Shiota reminded the audience that the Japanese government aims to provide the maximum support it can along with local governments and JETRO.


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Note: The above summary is an adaptation of the speaker’s presentation. Contents and quotes may not be entirely accurate.