DAVOS, Switzerland, Jan 22 (Reuters) - Japanese
companies remain bullish about investing in the United States
but need to prepare for supply chain shocks that could arise
during Donald Trump's presidency, the chief executive of drinks
giant Suntory Holdings said on Wednesday.
Takeshi Niinami, who also heads one of Japan's biggest
business lobbies, said on the sidelines of the World Economic
Forum's (WEF) Davos meeting that it is important for firms to
show that their investments will create jobs in the U.S..
A survey last week showed that most Japanese firms operating
in the United States are bracing for new tariffs.
"Tariff imposing by the Trump administration would create
huge, unexpected changes in the supply chain landscape," Niinami
told the Reuters Global Markets Forum.
"Japanese companies have to be agile to respond to any
change," he added.
Japan maintains a sizable trade surplus with the U.S., a
sore point for Trump, but that friction may ease as the Asian
nation bulks up its military through purchases of American-made
weapons, he said.
Niinami, 65, is one of Japan's most influential executives,
serving as chair of the Keizai Doyukai business lobby and as an
economic adviser to prime ministers.
In 2014, he became the first non-founding family member to
lead century-old Suntory, engineering a $16 billion takeover of
U.S. spirits maker Beam that year. He will cede the role of
president to Nobuhiro Torii, the great-grandson of Suntory's
founder, in March while remaining CEO.
Niinami held out hope that Nippon Steel's ( NISTF ) $14.9
billion bid for U.S. Steel could be revived after the deal
was blocked by then President Joe Biden earlier this month.
Nippon Steel ( NISTF ) has sued to overturn Biden's decision. If the
Japanese firm can make the case that the companies would be
stronger together against China and can revitalise U.S.
industry, that may sway the case, Niinami said.
As for his own company, Suntory is reconsidering investments
in China due to a lack of positive signs in the market, but it
is eager to grow in India through local partnerships and
manufacturing.
"We want to be somebody in India," he said.
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