Now, Mr. Ambassador, what do you make of that?
And does that really perhaps give you a blueprint for future relations that you
are trying to cultivate in this region? Well, I think it's an example, an
illustration of a couple of key strengths between the United States and
Japan. I do believe that if you look at this
area, there's I think energy security, reliability are going to be essential to
the next 20 years. The United States has that type of
capacity. I think the president's investment in
moving America in 2030 and 2050 towards its goals on climate make the IVA market
in the transportation one of the hottest market.
That public investment is bringing a tremendous amount of private investment.
And I also think that if you look going forward, international trade is going to
be replaced from cost and efficiency is the driving factors to stability and
sustainability is driving factors in, you know, two better examples and
partners and allies and friends, the United States and Japan and for the last
three years, United States and Japan have been directly to each other.
The number one foreign direct investment in each other's country.
And we're well on a pay scale in this type of investment.
The Panasonic investment to making it four out of four years.
Ambassador, maybe talk us through what the conversations you've been having in
Japan and how the U.S. Inflation Reduction Act, what impact has
that had on Japanese companies when they're thinking about maybe assembling
cars in the U.S. or even building a factory there?
Well, the way I look at it is globally. I mean, take a more comprehensive look.
1. Start with the infrastructure
investment. Second, the CHIPS Act and then the
Inflation Reduction Act. All three of them have an energy
component of a research and development component that looks to the future and
invests in the future. And Japan, companies that have a strong
footprint already are building on that footprint because the public investments
in the United States future and its productivity bring in the type of
private investment you want to see that Panasonic, Honda, Toyota all represent
and also the semiconductors. But I do want to say that also goes the
other way, which is Micron. Just the other day announced a major
investment here in Japan with the support of the Japanese government in
their plant in Hiroshima. And so to me, the prior administration's
investment, the biggest untapped market for the United States.
Well, we want to see and sell overseas. Is the United States market and the
Investments in Infrastructure Chips Act and the Inflation Reduction Act give you
the contours of making America the top priority investment?
Because those public dollars unleash about five or six private dollars.
Second, our abundance of energy and a portfolio from nuclear to natural gas to
renewables also give private companies the security, the reliability to make
those type of investments that don't exist around the world.
So the United States and Japan are exactly the right type of partners to
invest in. The future sees a future.
And I think that given the companies in Japan, they're seeing American market
that way. That's a real strong card for the United
States to play here. And Mr.
IBEX goes, that probably applies to South Korea to suit.
What it does seem is as a you can embedding relations at deepening
relations, I guess, with those two. Critics say it's just a way of perhaps
isolating China further. How do you respond?
Well, here's what I think. I mean, I think there are postcode would
post China's caution in post-war globalized commercial diplomacy is
transforming cost and efficiency used to be the driving factors today's stability
and sustainability of the North Stars. Second, it used to be always about
market access. While that's still important.
Energy, reliability and security are the new is going to be the defining factor
of the next 20 years. It used to be third how much you sold
that counts. But the real measure today is how much
data you collect. And it's clear that when you look at
what careers do Korean companies in Korea is doing.
If Japanese companies, the Japanese government, the United States.
Those factors that I think are going to define the international trade and
commercial diplomacy going forward means that our allies and our partners are
going to invest in each others and each other's future because it has all the
things that both countries and those companies in those countries see as a
more promising future. You are not going to pick a country to
expand to do cap ex. That could be one day on the sanctions
list. It's just not going to happen.
And that's what I ask you also. Think about it.
Yeah, I was asking about the chipset rules that my administration just laid
out last week that also impacts our allies as well.
In particular, some of these big chip manufacturers like South Korea, Taiwan
and Japan. What kind of feedback are you getting
from these countries? Are you willing to punish them if they
do try asking around these curbs or will you be giving more acceptance
while you work with that? You work with allies before you ever get
to the level of punishment. So even before you start and that's
unusual for a middle child to say that. So I would just say to you, we know two
weeks ago the vice president, the United States was in Japan and we brought
together a roundtable of chip manufacturers and also people as
suppliers. And Japan has an incredible leadership
role in what I call the supply chain of a supply chain, which is in and around
Chip's supply chain. There's a group now meeting with our
commerce secretary to understand the opportunities that exist from that CHIPS
Act. So they're actually seeing that as an
opportunity, not only in the support of expanding their footprint, the United
States, but there's tremendous amount of research and development dollars that
can be opportunity. But they come with appropriately strings
attach, which is you're going to invest in countries and in companies and areas
of the United States. And you can't do that with people that
are going to not just be competitive is one that competitors one thing, but
people who cheat the system. And that's appropriate for the United
States to do because it's out of our national security self-interest and our
allies understand that and also want to be part of that future.
And that's America realizing and using only its investment, but doing it from a
strategic perspective where our allies are a partner of that effort.
Mr. IBEX Lord Thomason said the former prime
minister of Britain said that a country to do a country's foreign policy has to
look at that trade policy, not in terms of trade.
What else are you doing? What other industries?
Looking at the moment to actually perhaps deepening ties with allies in
the region. Well, first off, there's a lot that
we're doing. I mean, one illustration, an example we
had worked through USTR. Commerce of the Embassy.
We work through an issue on beef that had been a problem.
And now the United States is the largest exporter of beef to Japan, which had
been a problem in the past. We had done certain other areas.
But you look at it comprehensively. You look at energy as an opportunity.
You look at areas of space. And technology is an area.
You look at the auto industry. You look at technology as relates to
chips, microchips in that area. You look at all specters, one of the
most promising newcomer S M R technology is an individual company that came out
of the national labs in Idaho. And the two biggest investors in the
company are Japanese investors. That's a promising technology to look to
be as whether it actually be marketable. Those are areas where you co-invest.
Japan has a leadership way ahead of the rest of the world on hydrogen.
There's a lot of opportunities in the United States Department of Energy, just
least, I think about five to seven billion dollars in research dollars in
hydrogen locations. Japanese companies can be a credible
lead competitive for those sources in building things in the United States.
They become an energy resource for the rest of the world.
Which brings us back to this joint venture with Honda.
And you know, these Japanese automakers are really throwing a lot of dollar
amounts into investing and investment, along with some pretty ambitious goals
of the easy transition as well. Is there a concern, Ambassador, that,
you know, this amount of spending doesn't justify, given that maybe this
level of demand and timeframe don't quite match?
Well, I mean, that's a that's a great question.
I think that there's a lot smarter people on this space, but there's a lot
of investments in the future. There are certain auto companies
specifically here from Japan that are investing in the U.S.
market that see a hybrid model. And then there's a lot of other
companies that are holding on a little more on the older kind of engine and in
a transition to a different type of engine.
That's going to be the promise of the United States market.
I do think the question goes to do you have all the resources both for the
battery and the type of chemicals and materials that go into it?
Legitimate question. There's much smarter people than myself
that can look to the future and understand what the resource capacity is
to support that market. The good news is, for a long time, the
United States was basically idling in neutral.
We're now seizing the future and major companies from Japan are investing that
future in the United States, which will continue to be the dominant lead in the
transition to a more energy efficient and more energy capable transition.
That's climate friendly and job friendly.