Japan’s Corporate Statesmanship in Texas

Traditionally, the summer months are a bit quieter with the kids out of school and many New Yorkers taking much deserved vacations, but this has not been a normal year. So, rather than focus on the developments of American politics or the stock markets, I wanted to highlight a particularly interesting trip I made to Texas recently.

Especially from the perspective of New York where many Japanese companies continue to downsize their presence given the rising costs, Texas’ dynamism and growth of Japanese operations has been both impressive and instructive to watch. Over 400 Japanese companies and counting call Texas home, which is an amazing testament to the strength of U.S.-Japan economic ties in the region. ? One such company making its mark in Houston is Daikin Industries. As part of its 100 year- anniversary activities, I had the opportunity to visit its state-of-the-art Texas Technology Park, the third largest factory in America behind only Boeing and Tesla. I marveled at the facility, able to house the equivalent of 380 American football fields for its nearly 10,000 employees employed ?there. ?Japanese companies have been instrumental in shaping Texas into a global economic powerhouse, especially over the last decade as Texas Governor Greg Abbott’s recent trip to Japan highlighted. These companies span various sectors, from automotive manufacturing to technology and finance.

It was clear to me that Japanese companies hold equal importance to its cultural impact in the U.S. Exchange programs like international homestays especially between Osaka and Texas are highlighted at Daikin with pride. Nippon Steel’s recent HQ move from New York to Houston before its ?U.S. Steel deal is a clear sign of the attractiveness of Texas, which ?the Japan America Society of Houston (a fellow member of the NAJAS network) has been supporting. From its upcoming Japan Festival Houston to National Bunraku Theater program in partnership with Japan Society, it’s great to see our U.S.-Japan network thriving in the heart of Texas. ?

Beyond the obvious business case, it is a joy to see creative uses of Japanese philosophies embedded into daily corporate culture. As any practitioner of martial arts knows, the “dojo” is a hall or place of training that directly translates to “the place of the way or pursuit.” This is deployed at Daikin’s “safety dojos,” where training systems reflect apprenticeship to grand mastery, truly capturing the Japanese way of craftsmanship that translates into manufacturing prowess. Pondering the manufacturing boom across the world? specifically in the U.S., led by Japanese companies from Toyota to Daikin, reinforces the strength of U.S.-Japan relations.

Despite branding historically being a challenge for Japan and Japanese companies, just as ?the Sony Walkman or Toyota Prius captured the imagination of the global consumer, Japan is “back” in a significant way, through its leadership in semiconductor manufacturing and digital content, as a few examples. This storytelling is being done in the arts, as well. The Meiji Modern exhibit currently on display at the Museum of Fine Arts Houston, originating in New York and curated by our friends at the Japanese Art Society of America, carries this theme back to the modernization of Japan into its present nation state back in the 19th century reminding us all of just how far Japan has come in its own history. The popularized “Toyota Way” of “kaizen” or self-improvement that swept the U.S. in the 1980s once led to fears of Japan and “Japan Bashing,” whereas the strategies of sustainable investment and innovation points towards attracting Japanese companies to American communities as their largest and most welcome investor.

As Prime Minister Kishida emphasized in his Joint Address to Congress during his official visit earlier this year, “Japan believes in U.S. leadership, and we also believe in the U.S. economy.” ?As I ?saw firsthand in Texas and JETRO reminds us, Japan has been a cornerstone investor in the United States for decades including as number one for most of this period, and its role has been particularly pronounced in the last decade. Japan's substantial investments in the U.S. have been a catalyst for job creation, economic growth, technological advancement, and increased trade. It's a mutually beneficial relationship that has strengthened the economic ties between the two nations.

From New York to Texas and from the 1980s to today, Japan stands as an indispensable pillar of the U.S. economy, a partnership deeply rooted in shared prosperity and mutual respect. Beyond robust trade and investment ties, the cultural exchange between our nations has fostered innovation, creativity, and a deeper understanding of each other that begins with the individual but is enhanced by our corporate relations. As global challenges continue to evolve from extreme weather to geopolitical risks, the U.S.-Japan alliance will continue to be a cornerstone of stability and growth, with arts and culture serving as a vibrant bridge connecting our societies for generations to come.