Photo/Illutration Japan Bank for International Cooperation (JBIC)'s Governor Nobumitsu Hayashi speaks during an interview with Reuters, at the company headquarters in Tokyo, Japan November 28, 2025. (REUTERS)

State-owned Japan Bank for International Cooperation (JBIC) is expanding beyond traditional development lending into financing for economic security projects as geopolitical risks reshape investment priorities, its chief told Reuters.

The move follows JBIC’s launch of a new investment facility in October, partly aimed at supporting Japan’s commitment to invest $550 billion in the U.S. under a tariff deal with Washington.

Unlike conventional JBIC programs focused on emerging markets, the new facility places greater emphasis on building supply chains in advanced economies, notably the U.S. in line with Japan’s investment pledge, JBIC Governor Nobumitsu Hayashi said.

JBIC, formed in 1999 through the merger of the Export-Import Bank of Japan and the Overseas Economic Cooperation Fund, saw its mandate shrink during the structural reforms of the early 2000s, which aimed to reduce state-led industrial policy.

However, its role has since expanded in response to China’s growing influence and rising geopolitical risks, evolving into a tool of economic statecraft.

“As geopolitical tensions are increasing more than ever, demand for our funding for such projects is rising,” Hayashi said in an interview. “I believe there are more areas where the entire government must work together to help companies reinforce their supply chains.”

NUCLEAR POWER SUPPLY CHAINS

Japan’s investment package would include equity, loans and loan guarantees from JBIC and Nippon Export and Investment Insurance (NEXI), targeting sectors such as semiconductors, critical minerals, pharmaceuticals, energy, and shipbuilding.

Investment is slated for completion by January 2029, coinciding with the end of Donald Trump’s presidential term.

Hayashi said energy is an area where financing needs are strong in the U.S., pointing to renewed interest in nuclear power, including small modular reactors (SMRs).

A joint factsheet released in October listed nuclear projects, such as Westinghouse’s initiative with Japanese suppliers like Mitsubishi Heavy Industries, as potential beneficiaries.

“If Japanese firms can participate as suppliers or provide technical expertise in the U.S., that would be highly significant,” Hayashi said.

The investment agreement with the U.S. could help Japan maintain its nuclear supply chain amid a lack of new reactor projects domestically, he said.

Hayashi sees JBIC’s broader role as part of a global trend, with governments reasserting themselves in industrial policy.

“China backs EVs with massive subsidies, and the U.S. is pouring billions into chips and energy,” he said. “Japan cannot afford to stand aside.”

 

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