For more than a century, the U.S. East Coast has attracted Japanese businesses, both large and small, each of them recognizing the region’s ideal conditions for investment.
In 2023, Japanese companies invested approximately $685 million in the region. Noteworthy examples of these investments include Mori Trust’s partial interest in the 45-story 245 Park Avenue commercial building in New York City and Asahi Shuzo’s new sake brewery in the Hudson Valley in upstate New York.
“We have a very long history of businesses that want to be in New York to do business. It will be important to keep this growing,” said Koji Sato, president of the Japanese American Association of New York, which turns 118 years old this year.
Having set such deep roots, Japanese businesses have contributed significantly to the region’s development, providing essential services to the local population and the growing Japanese community, whether in finance, health care or automobile manufacturing.
“With $61.6 billion invested in manufacturing since 1982, foreign investment interest continues to steadily increase. In the last seven years, nearly $30 billion has been dedicated to vehicle electrification. Beyond business, Japanese companies continue to invest in local communities, underscoring the strong ties between the U.S. and Japan,” said Japan Automobile Manufacturers Association USA General Director Anita Rajan.
In the financial sector, Daiwa Capital Markets America Inc., which marked its 60th anniversary in the United States last year, exemplifies how Japanese firms have shaped the landscape for investors and businesses across the globe.
“DCMA remains committed to being a trusted partner to all our clients around the world. We continue to focus on providing our highest level of service, delivering innovative solutions, and investing in our people, technology and sustainable future,” said DCMA Chairman and CEO Keiji Machida.
Carving its own niche as a small business providing an essential service, Japanese-owned and operated FuncPhysio Physical Therapy in midtown Manhattan offers one-on-one holistic care to thousands in the area, including expatriates working and living in the world’s financial capital.
“Health is the foundation of what you are. We opened our clinic to support and improve the quality of health care for our clients,” said founder Yohei Takada, who earned his doctorate in physical therapy from Columbia University in New York in 2008.
Along the way, the Japanese and Americans have benefited a lot from their interaction, adopting from each other the best of the other’s work culture.
That close relationship continues to evolve.
“We are witnessing unprecedented alignment of interests between the U.S. and Japan with real potential for additional progress in the coming years. While trade competition remains healthy, new collaboration opportunities are emerging in high-tech sectors. The East Coast is especially well-positioned for this growth,” said National Association of Japan-America Societies President Andrew Wylegala.
Beyond business, the public sector plays a key role in bringing the two sides closer.
“Our main purpose is to support the government’s effort to understand the market environment in New York and let Americans know who we are and what’s going on in Japan. Since then, we have seen a strong investing appetite from Japan,” said Bank of Japan General Manager for the Americas Makoto Kasai.
Complementing that role as an information provider is the Japan External Trade Organization, a government-related body that promotes foreign trade and investment to and from the country. In the United States, JETRO has six offices (New York, Chicago, Los Angeles, San Francisco, Atlanta and Houston).
“If you plan to increase your global footprint, JETRO is here to assist you and provide you with any information about the markets and business,” said JETRO New York President Satoshi Miura.
In recent years, the United States and Japan have also strengthened their relationship through various initiatives that address climate change and international security, among other issues.
“With all the challenges facing the globe, the relationship between Japan and the U.S. has become stronger than ever as our two nations collaborate on various issues,” said Japan’s Ambassador and Consul General in New York Mikio Mori.
Heading down the East Coast, Bethesda, Maryland, has become a new thriving business and financial hub, thanks to the steady stream of Japanese investment close to the nation’s center of government.
Commercial real estate finance and advisory firm Walker & Dunlop attests to this growth.
“Japanese investors have consistently contributed to the strength of U.S commercial real estate. Despite recent currency fluctuations, the U.S. market remains one of the best places for Japanese investors looking to diversify. We are eager to build on this legacy,” said Walker & Dunlop Chairman and CEO Willy Walker.
“With strong cultural parallels in work ethic and purpose, our team sees significant potential in partnering with Japanese firms not just as investors but as collaborators in a high-performance environment as well,” Walker added.
“We’re here to provide a stable gateway to the U.S. market and are committed to being thoughtful and strategic partners to help investors navigate opportunities.”