Japan to pitch infrastructure blitz at Trump meeting: report

by Melanie Zanona - 02/03/17 4:23 PM ET

Japan is planning to invest in U.S. infrastructure as part of a broader policy framework that Prime Minister Shinzo Abe is expected to pitch to President Trump when they meet next week, The Japan Times reported.

The Washington summit between Trump and Abe on Feb. 10 comes following Trump’s vow to make massive infrastructure spending a top priority.

The president personally asked Republican leadership to add a rebuilding package to their 200-day agenda, though the legislation could likely be sidelined until other GOP priorities are addressed.

Still, the talk has spurred great optimism among transportation advocates and investors.

{mosads}Japan’s Government Pension Investment Fund (GPIF), which is the world’s largest pension fund and manages over $1 trillion, will reportedly buy debt issued by U.S. companies to fund vast infrastructure spending.

Reuters said the investment will amount to $150 billion in public and private funds over 10 years, aimed at projects such as high-speed rail and cybersecurity.

The broad package being put together by Japan could reportedly create several hundred thousand U.S. jobs in projects “related to artificial intelligence and robotics.”

The Japan Times noted that the fund has been diversifying its asset portfolio over the last several years as part of the Abe administration’s economic plan, but the fund’s president, Norihiro Takahashi, has denied that the infrastructure investment in the U.S. was ordered by the government.

“The GPIF is making investments, including in infrastructure, from a long-term view chiefly for the interest of pensioners, and there will be no change in our principle,” Takahashi said, according to the report. “We won’t make changes to our investment portfolio in response to government instruction.”

Trump has bashed Japan over unfair trade practices on automobiles, but the Abe administration believes that an open dialogue with Trump’s team will help clear up “misunderstandings” about Japan’s economy.