Akazawa in Washington for trade talks after weekend's election
Tokyo wants to strike a deal before US President Donald Trump's August 1 deadline for 25 percent tariffs.
Shortly after landing, Japanese Economic Revitalization Minister Akazawa Ryosei told reporters, "These are negotiations involving our national interests, so whether we won or lost an election is fundamentally irrelevant."
He added, "We will continue vigorous discussions to find a mutually agreeable solution between Japan and the United States, while firmly protecting our interests."
It is Akazawa's eighth trip to the US capital to negotiate tariffs. He would like to hold talks with US Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent.
But Bessent said in a CNBC interview on Monday that he does not intend to rush the negotiations.
He noted that the US is more concerned with getting "high quality deals" than meeting the deadline.
He also said that regardless of the election's outcome, Washington is prioritizing "getting the best deal for the American people."
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The Diplomat
an hour ago
- The Diplomat
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The dismantling of USAID is the culmination of a decade-long realignment of Western approaches to development, inspired by China's Belt and Road Initiative. The GSEZ Mineral Port in Gabon, one of the projects supported by public-private partnership via the U.S. International Development Finance Corporation. As President Donald Trump takes a chainsaw to U.S. foreign aid programs, it would be easy to attribute such extreme measures to MAGA isolationism or DOGE zealotry. While anti-globalist and anti-government ideologies certainly played a role, the shift away from traditional foreign aid is not limited to the U.S. and does not represent a full-scale abandonment of development finance. Indeed, Trump's moves represent the culmination of a decade-long realignment of Western approaches to development, inspired by China's Belt and Road Initiative (BRI). The retreat from traditional foreign assistance cuts across the Western world. By 2026, estimates hold that foreign aid budgets will have fallen by over one-quarter in Canada and Germany and by close to 40 percent in Britain, compared with 2023 levels. Overall, G-7 countries, which account for 75 percent of foreign assistance, spent 28 percent less in 2025 than in 2024. Yet even as Trump's Big Beautiful Bill cut foreign aid, it also provided new funding – a $3 billion revolving fund – for the International Development Finance Corporation (IDFC), which was created by the 2017 BUILD Act. The IDFC is up for renewal this year, and the House Foreign Affairs Committee has already voted in support of authorizing its operations for another seven years with a lending cap of $120 billion, double the initial level. The IDFC was intended as an answer to China's BRI, which represented an alternative to traditional Western approaches to aid. The Development Assistance Committee (DAC) – a club of Western donor countries – defines Official Development Assistance (ODA) as concessional finance directed toward developmental projects in low- and middle-income countries. The DAC encourages transparency and discourages the tying of aid to purchases of goods and services from the donor country. Most DAC countries emphasize 'soft' aid, focused on health, education, and humanitarian assistance. ODA typically draws upon budgeted funds that must be renewed annually. Very little of Chinese development finance meets these criteria. Instead, China's development finance is commercial in orientation. Most loans are initiated by policy banks – the China Development Bank and the China Export-Import Bank – that raise funds by issuing bonds to investors. Loans carry near-market interest rates and must be repaid in full. Much of Chinese development finance has been channeled through the BRI, which focuses on infrastructure construction. Loans through these policy banks and others have amounted to well over a trillion dollars over the past decade. Western countries have followed China's lead both in commercializing development finance and in driving more resources toward infrastructure development. The latter move has transpired under the guise of various initiatives: the BUILD Act (U.S.), Build Back Better World (U.S.), the Global Gateway initiative (European Union), the Blue Dot Network (U.S., Australia, Japan), the Quality Infrastructure Investment Initiative (Japan), and the Partnership for Global Infrastructure and Investment (G-7). The competitive ambitions of the West have been limited by a paucity of available public funds, which makes it difficult to match the scale of China's BRI. This problem gave rise to efforts to leverage public money to mobilize private capital for development purposes through blended finance initiatives. At the multilateral level, a group of multilateral development banks issued a planning document titled 'From Billions to Trillions: Transforming Development Finance' in 2015. This paper outlined a vision for mobilizing private financial resources toward Global South infrastructure and other developmental needs. This was followed by the World Bank's 'Maximizing Finance for Development' initiative and the United Nation's 'Global Investors for Sustainable Development Alliance.' These projects and those discussed below constituted what Daniela Gabor characterized as a 'Wall Street Consensus.' Many types of infrastructure take the form of public (or semi-public) goods. Public goods, by their nature, are underproduced relative to their social utility because producers cannot exclude consumers from benefiting once the goods are produced. The Wall Street Consensus aims to make infrastructure projects 'bankable' or attractive to private investors by shifting the risk of unprofitability to the state. If successful, private money is pooled with public funding through blended financing models such as syndicated bond issues. In this 'development as derisking' model, private capital is 'escorted' into the process of financing infrastructure through the creation of new asset classes freed of investor risk. In 2018, the G-20 declared support for a Roadmap to Infrastructure as an Asset Class. Two types of risks must be minimized for private investors: regulatory risk and financial risk. Reducing regulatory risk includes lower environmental and safety standards, guaranteed grid access, legal protections against nationalization, and liability limits. Financial risk is managed through guaranteed toll revenues, preferential credit, loan guarantees, tax relief, or subsidies. Multilateral Development Banks (MDBs) or DAC donors help build state capacity in project identification and development, provide expertise in securitizing infrastructure assets for the market, and offer partial financing or loan guarantees. The necessity for subsidies and other forms of state support arises from the fact that more than half of infrastructure projects in emerging economies do not promise sufficient cash flow to attract private investors. Even projects with dedicated revenue streams often carry demand risks, meaning they turn unprofitable if demand for the service declines. Governments may be compelled to include contract provisions that promise to cover revenue shortfalls with public funds when demand falls below certain thresholds. Seth Schindler, Ilias Alami, and Nicholas Jepson noted that what Gabor referred to as the 'derisking state' becomes both more dependent upon global finance and increasingly interventionist in shaping market outcomes. This contrasts with the Washington Consensus, which counseled state neutrality vis-à-vis the market, but also differs from the East Asian development model, where state intervention sought to shape the behavior of national capital rather than global capital. By relieving private investors of risk, states aim to amplify the capital that can be mobilized toward critical development needs beyond national savings or the resources of MDBs and bilateral donors. The trade-off is the acceptance of risk by the developing state, a danger highlighted when the COVID-19 pandemic and rising interest rates threatened the solvency of many highly indebted countries. The U.S. International Development Finance Corporation fits this model. The BUILD Act described its purpose as to 'provide countries a robust alternative to state-directed investments by authoritarian governments and United States strategic competitors.' With a financing authority of $60 billion, the IDFC seeks to 'crowd-in' private capital with a flexible toolkit that includes nonconcessional loans, loan guarantees, export credits, political risk insurance, equity investments, and technical assistance. Largely due to IDFC activity, nonconcessional development finance flows jumped from 4 percent of overall U.S. aid spending in 2020 to 36 percent in 2021. Among the major projects funded by the IDFC are investments related to the Lobito Corridor in Southern Africa, which aims to create transportation links allowing Western firms to access critical minerals that are presently monopolized by China. 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Traditional aid may have drawbacks, whether evaluated as a tool of U.S. foreign policy or in terms of development effectiveness, but abandoning it in favor of the privatization of development finance is neither wise nor humane.
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an hour ago
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While the Section 232 investigation should help Hanwha Q Cells by incentivizing polysilicon production in the United States, there are more significant countervailing forces in U.S. policy that will negatively impact those investments. The Trump administration has introduced a new policy requiring a political review of new solar projects in the United States. Rather than being reviewed by lower-level staff, 68 different actions by the Department of Interior for the deployment of solar panels will now need to be personally approved by Secretary Doug Burgum. Because even projects not on federal land consult with the Interior Department to determine if their projects require permits or are in compliance with federal laws, this new policy has the potential to significantly slow the deployment of solar power in the United States. The One Big Beautiful Bill also moved forward the phase out of solar power subsidies to require construction to begin by July 4 of next year or power to be produced by the end of 2027. The subsidies were originally scheduled to be in place until 2028. Hanwha Q Cells and OCI are not the only Korean firms facing increasing pressure due to policy changes from the Trump administration. Over the last three years, about half of Korean investment into the United States has been in the EV battery sector. Those investments created over 20,000 U.S. manufacturing jobs. Yet these EV battery firms were already under financial pressure even before the removal of the Inflation Reduction Act's $7,500 tax credit under the One Big Beautiful Bill. The financial pressure on Korean EV battery makers will increase with the slowing growth in demand for EVs following the removal of the consumer tax credit. This decline will also impact Hyundai, which just invested $12.6 billion to build its new Metaplant in Georgia to produce 500,000 EVs and hybrid vehicles per year across all of its brands. The regulatory shifts under the Trump administration will only add to the increasing cost pressures manufacturers face from the various Section 232 and anti-dumping investigations on commodities, which will drive up the cost of producing goods in the United States. The proposed 50 percent tariff on copper will increase costs for producers of semiconductors, EVs, and consumer electronics. A new 93.5 percent anti-dumping tariff on graphite, a key material for making EV batteries, will also increase the costs of EV batteries. With reductions in subsidies and increasing regulatory barriers for these industries, production costs will increase will demand for their products will decline. Trump promised a low regulatory environment to boost manufacturing in the United States and to help compensate companies for the new tariffs. That low regulatory environment to date only applies to industries favored by the Trump administration; in other sectors, new policies actually undermine existing manufacturing investments in the United States. Any new trade deal between the United States and South Korea needs to address the negative impact of policy changes on Korean firms to protect US manufacturing and encourage further Korean investment in the United States.
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Ishiba Reiterates Determination to Stay On
News from Japan Politics Jul 24, 2025 22:05 (JST) Tokyo, July 24 (Jiji Press)--Japanese Prime Minister Shigeru Ishiba on Thursday reiterated his intention to stay in office despite his ruling bloc's bruising defeat in Sunday's parliamentary election. "I want to continue to make every effort to ensure that this agreement is steadily implemented and to dispel concerns among domestic businesses," Ishiba told reporters, referring to the agreement reached in Japan-U.S. tariff negotiations. "It's important for I and the president to implement the agreement steadily," Ishiba said of U.S. President Donald Trump. Japan has as many as 4,318 items for export to the United States, the prime minister said. "I think (business operators) are very worried about what will happen to their export items." END [Copyright The Jiji Press, Ltd.] Jiji Press
