Chapter 3 Japan's Foreign Policy to Promote National and Global Interests 4 Support for overseas expansion of Japanese companies (including promotion of exports of Japanese agricultural, forestry, and fishery products and Japanese food products) (1) Promotion of Japanese Companies' Overseas Business Expansion by MOFA and Accompanying Diplomatic Missions Overseas The number of Japanese companies operating overseas has been increasing over the medium- to long-term despite being affected by domestic and overseas economic conditions and other circumstances. One of the reasons behind this is that many Japanese companies, which underpin Japan's economic development, have embarked more actively than ever before on overseas expansion with the aim of further cultivating foreign markets. Support for Japanese companies by the government is also becoming increasingly important in the interest of incorporating into the Japanese economy the momentum of economic growth overseas, such as that of the Global South. In light of the situation, MOFA, in coordination with diplomatic missions overseas, has been engaged in supporting Japanese companies in their efforts to expand their businesses overseas. Under the motto of being “open and responsible government offices,” diplomatic missions overseas have ambassadors and consuls-general, who, together with Japanese business support officers and other staff, are at the forefront of providing support tailored to conditions in a specific region, such as providing various information to Japanese companies and lobbying foreign governments. Since April, “officials in charge of cross-border economic affairs” have been appointed to effectively support Japanese companies engaged in cross-border activities that include entering third-country markets, and support from a regional perspective has begun. (As of the end of December 2024, these officers have been appointed to 17 diplomatic missions overseas in 14 countries, with an eye on such markets as Africa, Southeast Asia, Central Asia, and Central and South America.) In addition, MOFA provides consultation services regarding economic coercion, and some diplomatic missions overseas in Asia, Africa, and other regions utilize Japanese lawyers who are familiar with local laws, regulations and legal situations to hold seminars and legal consultations on local legal systems. In addition to consultations about business problems, an important function performed by diplomatic missions overseas for Japanese companies is the promotion and publicity of the “Japan Brand” for products, technologies, and services from Japanese companies, as well as for Japanese agricultural, forestry, and fishery products at various events that include the reception to celebrate His Majesty the Emperor's birthday, and exhibitions. These missions have actively provided embassies and ambassadors' residences and other facilities as venues for promoting and publicizing Japanese products and foods through events such as product exhibitions and tastings by Japanese companies, as well as for seminars aimed at business development, local government trade fairs, and interacting and networking with local companies and related organizations. (2) Promotion of the Japanese Infrastructure System in Overseas Business Expansion To capture infrastructure demand, especially from emerging economies, and to promote overseas deployment of infrastructure systems by Japanese companies, the Ministerial Meeting on Strategy relating to Infrastructure Export and Economic Cooperation, chaired by the Chief Cabinet Secretary and comprising relevant cabinet ministers, was established in 2013, and 58 meetings were held by December 2024. This Meeting has been annually revising and following up on the “Infrastructure System Export Strategy” formulated in 2013, and in December 2024, in light of changes surrounding the development of overseas infrastructure such as structural changes in the global infrastructure market, it formulated the “Infrastructure System Overseas Promotion Strategy 2030,” which sets a course for going beyond traditional concepts of infrastructure to take on challenges in new areas while implementing policy, with the public and private sectors working together to achieve growth for both Japan and its partner countries. The strategy lays out specific measures across three pillars: (a) improving Japan's “earning power” and strengthening international competitiveness through co-creation with partner countries, (b) responding quickly to new societal demands such as economic security and ensuring national interests, and (c) responding flexibly to embrace social changes such as GX (Green Transformation) and DX (Digital Transformation) as opportunities. The strategy also sets a goal of achieving 45 trillion yen in orders for infrastructure systems by 2030. In addition to promoting top-level sales, including at the leaders and foreign minister levels, MOFA is also providing support through diplomatic missions overseas and by utilizing Official Development Assistance (ODA). (3) Promotion of the Export of Japanese Agricultural, Forestry and Fishery Products and Food (Removal of Import Restrictions on Japanese Food Products after the Great East Japan Earthquake) Expanding exports of Japan's agricultural, forestry, fishery, and food products is a major objective of the Government of Japan. In December 2020, the government formulated the “Strategy to Realize Export Expansion of Agricultural, Forestry, Fishery and Food Products,” and is making a concerted effort to achieve export goals for agricultural, forestry, fishery and food products. This strategy was revised in 2021, June 2022, December 2022, and December 2023 as part of efforts to further expand exports. MOFA is also working with related ministries and agencies, Japanese companies, and local governments to expand exports. In particular, Japanese business support officers (in charge of the food industry) have been assigned to 85 diplomatic missions overseas in 63 countries and regions, and some of these missions also have advisors for promoting the export of agriculture, forestry, fishery, and food products who are familiar with local conditions. In addition, MOFA is actively promoting the attractiveness of Japanese agricultural, forestry, and fishery products and food products through its network of diplomatic missions overseas and by utilizing social media and other means, as well as by seizing various opportunities such as receptions and cultural events to which dignitaries from various countries and regions are invited. In addition, Japan Food Export Platforms, consisting of diplomatic missions overseas, the Japan External Trade Organization (JETRO) overseas offices, and other organizations, make use of their local presence to provide useful local information to domestic businesses, product groups, and prefectures, and serve to connect these parties and overseas businesses, as well as to plan various promotional activities by a concerted national effort. One of the biggest barriers to increasing exports is import restrictions on Japanese agricultural, forestry and fishery products and food by countries and regions following the Great East Japan Earthquake and TEPCO's Fukushima Daiichi Nuclear Power Station accident. Completely eliminating these restrictions and addressing Japan's reputational damage are top priorities for the Government of Japan, and MOFA has been making efforts in collaboration with relevant ministries and agencies to have these restrictions lifted as quickly as possible. As a result of these efforts, a total of 49 countries and regions have lifted their export restrictions. In addition, Taiwan announced further easing of import restriction measures in September. As of the end of 2024, six countries and regions still maintain regulations (Regulations including import suspension: the ROK, China, Hong Kong, Macau, Russia; Requirements including inspection certificates: Taiwan). China, Hong Kong, Macau and Russia currently maintain newly strengthened regulations implemented following the discharge of ALPS treated water into the sea in August 2023. With regard to China, in September 2024, the two countries announced a “Shared Recognition between Japan and China” regarding discharge of ALPS treated water into the sea and import restrictions on Japanese aquatic products. After conducting additional measures under the framework of the International Atomic Energy Agency (IAEA), the Chinese government will initiate adjustment of its import restriction measures on Japanese aquatic products, and will steadily restore imports of Japanese aquatic products. In light of this announcement, Japan will continue to call on the Chinese government at all levels to resume imports of Japanese aquatic products as quickly as possible. At the WTO, Japan has consistently and strongly urged China and other countries and regions to immediately repeal their measures, and has requested discussions with those countries and regions based on the SPS Agreement, while explaining its position at meetings with the relevant WTO committees. Furthermore, in accordance with the provisions of the RCEP Agreement to which both Japan and China are Parties, Japan has requested discussions with the Chinese government and has asked China to engage in the discussions in accordance with its obligations under the Agreement. MOFA will closely work with the relevant ministries, agencies, local governments and international organizations and will continue taking every opportunity and making every effort to persistently explain and appeal to these countries and regions, with the goal of having restrictions promptly removed and reputational damage repaired based on scientific evidence. In recent years, the economic presence of developing and emerging countries, the so-called “Global South,” has been rapidly rising. To further promote economic growth in Japan, it is becoming increasingly important to leverage the vitality of the Global South. Based on this recognition, some Japanese companies are accelerating their business expansion across borders and regions by engaging in overseas production activities with an eye toward exporting to third countries that have potential for future growth, as well as by collaborating with local enterprises in their host countries in order to advance into rapidly growing third-country markets. On the other hand, attempting such business exposes Japanese companies to various risks, such as sudden additions or changes to regulations by the authorities of the third countries where they are looking to expand into or export to, as well as tax issues, requests for unfair benefits (bribery), and delays in obtaining visas and work permits. Additionally, any company looking to smoothly expand into or export to a third country will find that it is essential to access information on the country's politics, economy, and security, as well as to collaborate with trustworthy partner companies from other countries. In light of these challenges and realities, and to be able to respond flexibly to the individual circumstances and needs of Japanese companies, the Ministry of Foreign Affairs (MOFA) has appointed new officials in charge of cross-border economic affairs to several diplomatic missions overseas throughout 2024. Previously, Japanese business support officers at embassies or consulates-general located in each country mainly responded to individual consultations and requests for support regarding business activities in their respective countries. Now, officials in charge of cross-border economic affairs will be able to respond more precisely and proactively to the needs of Japanese companies that are interested in expanding into the Global South and are strategically expanding their business overseas with a regional perspective. Specifically, these officials in charge of cross-border economic affairs will provide information on the business environment of third-country markets to companies expanding into or exporting to those markets, and upon companies' requests, they will coordinate diplomatic approaches to the governments of these countries. MOFA will also actively engage in networking with foreign companies that are familiar with the business environments in third countries. Going forward, MOFA will continue to make effective use of these officials in charge of cross-border economic affairs while also taking advantage of the network between MOFA, relevant ministries and agencies, and diplomatic missions overseas to proactively support Japanese companies as a concerted national effort. Designated Regions of the Officials in Charge of Cross-Border Economic Affairs An online exchange of views between Foreign Minister Kamikawa and officials in charge of cross-border economic affairs (July 12)