In a forthcoming meeting in Washington, President Joe Biden and Japan’s Prime Minister Fumio Kishida are reportedly set to discuss a proposal to construct the first high-speed rail in the U.S. using Japanese bullet train technology.
What Happened: The leaders might express their support for the multi-billion-dollar Texas project following their talks on Wednesday, Reuters reported on Tuesday. This is despite U.S. resistance to another Japanese investment, the planned acquisition of U.S. Steel by Nippon Steel.
The high-speed rail project, which aims to connect Dallas and Houston, could be mentioned in the joint statements after the discussions, as per sources privy to the summit preparations. However, a senior official from the Biden administration suggested that the project might not be ready for a public progress announcement.
The leaders’ endorsement could pave the way for additional funding from the Federal Railroad Administration and other Department of Transportation funds. However, the project, with an estimated cost of $25 billion to $30 billion, still faces potential obstacles in Texas and the U.S. Congress.
Why It Matters: The development comes at a time when U.S. commodity exporters and pharmaceutical companies, such as Chevron and Eli Lilly and Co, have expressed concerns over market intervention as the Japanese yen reached a 34-year low against the dollar.
Furthermore, the U.S.-Japan alliance is strengthening in other sectors, such as technology. Reddit Co-Founder Alexis Ohanian’s venture capital firm is eyeing the U.S.-Japan chip sector as a strategic investment opportunity, indicating the growing importance of bilateral cooperation in tech innovation.
The upcoming summit will also discuss critical geopolitical issues. Biden and Kishida are expected to address threats from North Korea and China, highlighting the multifaceted nature of U.S.-Japan relations.
Image by Gints Ivuskans via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
