Japan investment in US hits record levels in shift away from China

Japanese foreign direct investment in the US hit a record $77 billion last year, highlighting Tokyo’s fraying ties with China.

Japanese investment in China has fallen around 60% in the past decade as geopolitical tensions rise and Chinese economic growth slows, an analyst told Nikkei Asia.

The data was published shortly after Japanese Prime Minister Shigeru Ishiba met with US President Donald Trump in Washington, with Ishiba expressing “optimism” that his country would avoid US tariffs.

However analysts believe Ishiba could play a bigger role in US-Asian relations than his predecessors: The Japanese leader could show Washington “the value Tokyo can add in reining China in,” a Bloomberg Japan columnist wrote.