The California Chamber of Commerce and Japan business leaders explored subjects of mutual interest this week during a working luncheon in Sacramento.
The June 12 gathering marked the 23rd annual visit between representatives from the CalChamber, the Japanese Chamber of Commerce of Northern California (JCCNC) and Japan Business Association of Southern California (JBA).
Leading the Japanese business delegation were:
• Kazuhiro Gomi, JCCNC president and president and CEO of NTT Research, Inc., the global research and development arm of NTT; and
• Akira Minamiura, JBA president and president of Kintetsu Enterprises Company of America, which owns and operates two hotels and an office building in Southern California.
Representing the CalChamber at the luncheon were Jennifer Barrera, president and CEO, and Susanne T. Stirling, senior vice president, international affairs.
Current Topics
Topics discussed at the luncheon included California-Japan business collaboration; trade and foreign direct investment; initiatives combating climate change; clean energy initiatives, especially hydrogen; worldwide taxation; small business procurement; human resources issues; and the California business climate.
Top Trading Partner
U.S.-Japan Trade
Japan was the sixth highest U.S. export partner in 2023, with total exports equaling $76.1 billion, according to the International Trade Administration. Top exports to Japan from the United States were chemicals ($14.1 billion), oil and gas ($9.5 billion), transportation equipment ($7.9 billion), computer and electronic products ($7.2 billion), and processed foods ($5.9 billion).
Japan ranked fifth as a source of U.S imports; total imports were $147.3 billion. Top imports from Japan were transportation equipment ($55.5 billion), non-electrical machinery ($28.7 billion), chemicals ($16.7 billion), computer and electronic products ($14.2 billion), and electrical equipment, appliances and components ($9 billion).
U.S exports to Japan were up by 1.1% in 2023, while imports were down by 3.2%, reducing the U.S trade deficit with Japan from $70.1 billion to $62.7 billion.
California Trade Facts
California accounts for roughly 14% of U.S exports to Japan. In 2023, Japan ranked fourth among California export partners, with exports to Japan totaling $10.6 billion. Japan has been California’s fourth ranked export partner since 2010.
The top five California exports to Japan last year were computer and electronic products ($2 billion), transportation equipment ($1.5 billion), processed foods ($1.4 billion), non-electrical machinery ($1.2 billion), and chemicals ($996 million).
Japan also ranked fifth among California import partners, with imports totaling $25.8 billion, making California imports 17% of total U.S imports from Japan.
The top five imports from Japan were transportation equipment ($9 billion), non-electrical machinery ($3.5 billion), computer and electronic products ($3.2 billion), chemicals ($3 billion), and electrical equipment, appliances and components. ($2.2 billion).
In 2023, Japan was a leading source of foreign direct investment (FDI) in California through foreign-owned enterprises (FOEs). Japanese FOEs in California provided 112,673 jobs through 3,280 firms, amounting to an estimated $12.249 billion in wages. The top jobs by sector are manufacturing, wholesale trade, retail trade, professional/business services, and financial activities. (World Trade Center Los Angeles, Foreign Direct Investment in California, 2024).
Association Allies
• JCCNC was established in 1951 as a nonprofit corporation to promote business, mutual understanding and goodwill between Japan and the United States.
• JBA, founded in 1961, is a nonprofit organization consisting of nearly 420 Japanese corporations doing business across Southern California.
For more information on California -Japan relations, visit www.calchamber.com/japan.
