| Media Note Office of the Spokesman Washington, DC June 6, 2007 U.S.-Japan Investment Initiative 2007 Report Progress on Opening Japan to Foreign InvestmentThe U.S. Department of State and the Ministry of Economy, Trade and Industry of Japan today released the United States-Japan 2007 Investment Initiative Report prepared for President Bush and Prime Minister Abe. The Department of State welcomes the ongoing commitment of the Japanese Government to take concrete steps to expand opportunities for foreign direct investment in Japan, as outlined in the report. The report welcomes Prime Minister Abe's success in nearly doubling foreign direct investment (FDI) in Japan since 2001 and his commitment to redouble FDI by 2010. Foreign investment is a catalyst for economic growth and innovation in both Japan and the United States that creates jobs, transfers technology, revives corporations, and supplies risk capital. It also helps build deeper political and social understanding between the two countries. The report documents the Initiative's success in promoting changes to Japan's Corporate Code, which entered into force in May 2007, that open new avenues for mergers and acquisitions (M&A) by foreign companies investing in Japan. In the report, the Government of Japan reaffirms the valuable role M&A plays in promoting foreign investment. The United States will continue to monitor implementation of the new regulations and their usefulness to U.S. firms to ensure that the new mechanisms actually facilitate new investment, as intended. The report also welcomes Japan's progress in facilitating establishment of foreign university campuses, with a fourth branch campus of a U.S. university designated as a qualified foreign university in Japan's educational system. New rules will ease the requirement for universities to own facilities, provided they meet other conditions. The report further notes Japan's commitment to explore ways to improve labor mobility as a key to enhancing its appeal to foreign investors. In addition, the two governments will continue an exchange among investment experts of views and experiences on their respective investment agreements. Both governments agree that public attitudes towards FDI are important and have ongoing outreach in Japan and the United States to provide information on the investment climate. The Investment Initiative is part of the U.S.-Japan Economic Partnership for Growth (EPG). President Bush and former Prime Minister Koizumi launched the EPG in June 2001 to support economic renewal and revitalization in both Japan and the United States. This year's Investment Initiative report is available at www.state.gov. |
