Briefing for Riverside County International Business Office Steve

Briefing for Riverside County International Business Office Steve Knode Deputy Senior Commercial Officer U. S. Embassy - Tokyo U. S. Department of Commerce | International Trade Administration

Market Introduction - JAPAN • • • G-7 Member Economy GDP: $5 trillion (#3) GDP Per Capita: $45, 550 Unemployment: 2. 8% Inflation (CPI): 0. 0% Like-Minded Indo-Pacific Ally U. S. Department of Commerce | International Trade Administration

Market Introduction - JAPAN • • Ease of doing business Rule of Law, IP Protection Regulatory Regimes Internet penetration ü 93% personal ü 100% corporate U. S. Department of Commerce | International Trade Administration

JAPAN: Crowded Competitive Market U. S. Department of Commerce | International Trade Administration

JAPAN: “Just-in-Time” Expectations U. S. Department of Commerce | International Trade Administration

JAPAN: Trends drive U. S. opportunities Rapidly Aging Society Strong U. S. -Japan Alliance Adopting IT and Automation Supplying Energy & Technology U. S. Department of Commerce | International Trade Administration

JAPAN: Opportunities for US Exporters • Healthcare & Life Sciences • Defense and Space • Digital Economy & Technology ü Cybersecurity, Artificial Intelligence (IT) ü Io. T, Robotics, Automation (OT) • Energy Solutions, Renewables U. S. Department of Commerce | International Trade Administration

JAPAN: “Super-Aged” demographics 2020: 126 million 29% over 65 yr-olds 2060: 86 million 40% over 65 yr-olds U. S. Department of Commerce | International Trade Administration

JAPAN: Healthcare Opportunities Prescription & Non-prescription drugs • $87 billion market, spending to exceed 10% of GDP Medical Devices • $26 billion market, expected to grow 4. 5% Senior Care • Life expectancy is 87 and 81 years for women and men. Health IT • 2016 adoption of electronic healthcare records. • 40% increase in electronic ordering systems. U. S. Department of Commerce | International Trade Administration

JAPAN: Digital Economy Opportunities New Digital Agency (2021) 5 G Rollout • $40 billion in procurements by 2022 Super Aging Society • Demand for AI solutions to reach $3. 8 billion Shrinking Labor Force • • Shortage of 200, 000 IT professionals Lack of in-house cybersecurity experts Cybersecurity Threats on the Rise • • 40% increase in cyberattacks between 2016 -2018 COVID, teleworking and Olympics vulnerabilities U. S. Department of Commerce | International Trade Administration

Advanced Manufacturing Demographic shifts in Japan are driving the need for change in manufacturing and service sectors. An aging population and a shrinking workforce drive change: automation and advanced manufacturing critical to maintaining growth. BEST PROSPECTS • Smart Factory/ Digital Twinning 14000 12000 10000 $ Million - Io. T/AI capabilities and 5 G networking - Industrial robotics around $2. 5 billion (80% growth in 5 years) - Digital twinning / advanced production monitoring and control • Additive Manufacturing - $842 million in industrial sales for 2018 - Demographics likely to have impact on traditional supply chains, creating opportunities for flexible manufacturers - Slower equipment growth - New materials opportunities 8000 6000 Industrial Robotics Industrial 3 D printer 4000 2000 0 2013 2018 2023 Sources Robotics: Japan Robot Association (JRA) and New Energy & Industrial Development Organization (NEDO) Additive Manufacturing: IDC Japan U. S. Department of Commerce | International Trade Administration | U. S. Commercial Service

Japan’s energy mix shifts (Suga goal for 2050)… …environmental technologies are key. Current Energy Mix (2018 -19) o Move t bles renewa by 2050 Sources: METI, JSEP U. S. Department of Commerce | International Trade Administration

Japan & Covid 19 & Tokyo Olympics U. S. Department of Commerce | International Trade Administration

JAPAN: Key Business Basics • Translate documents into Japanese, including your business cards • Do not assume English abilities, need to hire an interpreter • Understand the culture and business etiquette of Japan • Relationships matter in Asia • Be prepared to return frequently U. S. Department of Commerce | International Trade Administration

U. S. Commercial Service JAPAN Tokyo U. S. Embassy Tokyo 1 -10 -5 Akasaka, Minato-ku, Tokyo 107 -8420 Osaka U. S. Consulate General Osaka 2 -11 -5, Nishitenma, Kita-ku, Osaka 530 -8543