The Japanese government intends to create a sovereign wealth fund to invest in American infrastructure projects to improve economic relations with Washington while putting excess capital to better use, the Nikkei reported.
The state-backed fund will support infrastructure construction along with resource development and storage, as well as invest in joint U.S.-Japanese projects in other countries.
Japan is expected to offer the fund as a concrete example of economic cooperation with the United States at the “free, fair and reciprocal” trade talks that the two sides will launch on Aug. 9. Washington will likely push for a bilateral free-trade agreement at the talks, and additional tariffs on autos remain on the table. Japan hopes cooperation on the new fund will ease trade pressures.
Tokyo will raise capital from the private sector through bond issues as early as fiscal 2019.
