Skip to main content

Japan Consul General in Houston Discusses Trade and Investment in the Region

Published Jan 25, 2021 by Javier Vargas

Japan Consul General in Houston

Houston is widely regarded as a great global city, with one of the most diverse populations anywhere in the United States. As the top exporting metro in the U.S., our economy is also deeply tied to global trade and foreign investment. 

The region has trading relationships with more than 200 countries, which collectively logged $237 billion in trade in 2019. Japan ranks as Houston’s 9th largest international trade partner with trade between the two regions valued at $9.2 billion in 2019.

Japanese companies have invested significantly in the Houston region in recent years. Several notable corporations now have a large presence in Houston including Daikin North America, Kawasaki Heavy Industries, Kuraray, Mitsubishi and Toshiba.  

Over the years, the Partnership has worked closely with the Japan Business Association, Japan-America Society, and the Consulate General of Japan to welcome numerous Japanese delegations to Houston, support business recruitment activities and lead notable international trade missions.

In December, the Partnership and Mayor Turner hosted a virtual multi-day investment and trade mission focused on reinforcing key relationships and establishing new avenues for cooperation and investment with government stakeholders and business leaders in Japan. 

The Honorable Hideo Fukushima, Consul-General of Japan in Houston, has been instrumental in creating an environment supportive of the full range of ties between Houston and Japan. Following the recent investment and trade mission, the Partnership met with Consul-General Fukushima to discuss the special relationship that exists between Houston and Japan. 

 

Can you provide some insight on why it has been important for Japan to have a consulate presence in Houston?  

Japan first established a consular office in Houston almost 80 years ago in 1941 as a branch of the former Japanese Consulate-General in New Orleans. The history of the Japanese community in Texas is even older than that. Japanese immigrants first settled in the state around the year 1900, becoming Texas’s earliest rice farmers. The community has been steadily growing ever since then, but the prosperous post-war years of the 1960s are when relations really started to boom, with growing bilateral trade and Japanese companies, mainly in energy and manufacturing, establishing operations in the region. At that point, it became clear there was a need to further provide for the welfare and safety of the growing Japanese community while promoting even stronger business relations. So, the Houston consular branch office was upgraded to a full Consulate-General in 1965, and the Japan Business Association of Houston was established soon after in 1967.  

The decades since the 1960s have seen the relationship grow even stronger, with Japanese people and businesses becoming integrated into more aspects of life in Texas. Japan now has 18 diplomatic mission across the United States. But, the presence of our office here in Houston holds special importance since the region it covers is among the fastest growing in the country, with so much potential for current and future exchange.

How have the ties between Japan and Houston brought new business opportunities to your country? 

Just like the rest of Texas, the bond between Japan and Houston has grown steadily over the decades. But, the pace of that growth has been especially strong over the last five years or so. In business, this is mainly due to Houston’s robustly growing economy, which been a beacon of innovation attracting more and more Japanese companies. Over the last decade, Japanese businesses have more than doubled the number of jobs they have created in Texas. Houston is a real bright spot in that regard, with the number of member companies of the Japan Business Association of Houston increasing by 40% during the 2010s. 

As more business opportunities become available in Houston, Japanese companies are increasingly seizing them. A typical case-in-point is the Houston energy sector. Texas is the driving force behind US energy production, which is playing a bigger and bigger role on the global stage. Japanese companies have benefitted tremendously from building relationships with Texas energy companies and investing in energy export projects. For example, the massive Freeport LNG joint-project is key to a bright new chapter in Japan’s energy diversification strategy. But, energy is far from the only sector to be investing in the area. Daikin opened their large Technology Park and Mitsubishi Heavy Industries has moved their American headquarters to the region. So, Japan is clearly positioned to benefit from further business exchange with companies in Houston, which show enormous potential for growth. 
  
How have the business ties between United States and Japan evolved in recent decades? 

The economic relationship between Japan and the US has changed significantly over the last 30 years or so. When I joined the Japanese Foreign Service in the mid-1980s the most pressing issue in the bilateral relationship was the large trade deficit the US had with Japan - driven mostly by automobile imports. At that point in time, Japanese imports accounted for nearly half of the total US trade deficit with all nations. But now, Japanese imports only account for about 8% of the total US trade deficit, whereas Japan has risen to become the top foreign nation investing in the United States as of last year. The economic partnership between Japan and the US has transformed at the fundamental level, with both sides taking a win-win approach on working together. Typically, Japanese companies act by making their products at the local level, creating jobs for local people and producing essential goods and services for businesses and consumers in the region. About 6%, or $95 billion worth of US exports are now produced by Japanese manufacturers in the United States.

A key indicator for how strong Japan-Houston business relations have grown was the recent virtual seminar “Doing Business with Houston” hosted by the Greater Houston Partnership and JETRO. That event was a huge success that brought together over 500 Japanese companies interested in possibly doing business in the region. In the course of the seminar, Mayor Turner provided a strong invitation for Japanese businesses to consider the area’s economic potential - and I am certain that many of them will.

What has surprised you most about Houston during your time here? 

Coming from Japan I of course am impressed by the size of everything in Texas and in Houston. For one thing there is the food - the size of a Texas barbecue plate or Texas steak is so huge compared to Japan. But it’s not just the food - I am always amazed at the massive scale businesses like the Buc-ee’s gas stations in the region. I guess the saying is true - “everything is bigger in Texas!”

What do you think would surprise Houstonians who visit Japan? 

Many Houstonians have told me how surprised and delighted they were by the technological conveniences they encountered on trips to Japan. One that is especially surprising to many of them is the technology found in most Japanese bathrooms. It is pretty common in Japan for toilets to have built in “washlets” or automatic bidets. Other features, like heated toilet seats and touchless lids that automatically raise and lower are also fairly widespread.

How do you see the ties between Houston and Japan changing in the next 10 years? What factors might impact the relationship? 

Over the medium and long term I absolutely expect the trend of increasing economic cooperation and closer integration between Japanese and Houstonian companies to continue. But, in the short term the impact of COVID-19 cannot be ignored, and by all accounts it will continue to cause disruptions for several more months. We all face the same daunting challenges in the wake of the pandemic, and therefore must seek new socio-economic solutions that emphasize resilience and sustainability for the current situation and others like it that may arise in the future. In that regard, Japan and Houston both have uniquely skilled workforces and the technological know-how to break new ground on these issues and pave the way for long-lasting fruitful business partnerships. 

Case in point are the industries that will play a major role as digital technologies like artificial intelligence and the internet of things transform society. Another key sector will doubtlessly be in medical technology, where Japan as the society with the most aged population, can share its knowledge and technological expertise on caring for the elderly with the world-class medical research institutes in Houston. Another promising area for cooperation is investment in clean energy, including hydrogen and renewables. Those sectors are just a few of the many potential areas for future-looking collaboration between Japan and Houston. 

 

For more information about the Houston Region's international ties, click here

Related News

Economic Development

How Amazon's Strategic Procurement Drives Inclusive Growth

11/20/24
Amazon’s leadership in supplier diversity has positioned the corporation for success while driving inclusive economic growth. Kennedy Oates, Partnership Board Member and Vice President of Global Procurement at Amazon, shared insights and best practices at the Greater Houston Partnership’s One Houston Together Fall Chief Procurement Officers (CPO) Convening.  Oates discussed how Amazon has grown its supplier diversity efforts by ensuring the value proposition of intentional inclusion of underrepresented businesses is communicated at every level. According to Amazon’s 2023 Sustainability Report, the company’s global supplier diversity and inclusion (SDI) program is estimated to have supported over 30,000 U.S. jobs and generated approximately $2.8 billion in wages earned from Amazon's certified U.S. Tier 1 supplier diversity spend.  In 2023, Amazon was inducted into the Billion Dollar Roundtable, a non-profit organization comprised of U.S. corporations that each spend $1 billion or more annually on a Tier 1 basis with diverse suppliers. These diverse-owned businesses comprise majority owners who identify as minorities, women, veterans, disabled and LGBTQ.  Oates stated that achieving this milestone required a deliberate approach, built on a clear vision, a targeted strategy, and an empowered team dedicated to executing these goals. By embedding supplier diversity into Amazon’s core procurement practices, they’ve fostered a sustainable and inclusive growth model that supports both the company’s goals and the success of diverse suppliers. Key Takeaways from CPO Convening Supplier Diversity as a Strategic Value Proposition Oates emphasized the importance of viewing supplier diversity as more than just an initiative—highlighting the long-term value diverse suppliers bring to a company and its surrounding communities. Through its global SDI strategy, Amazon measures impact through jobs supported, wages earned and economic output generated. “Given our reach and scale, Amazon has a greater responsibility.” – Kennedy Oates, VP of Global Procurement, Amazon Vision-Driven Goals with Clear Strategies For Amazon, supplier diversity goals go beyond simple statements. Oates stressed the importance of crafting a well-defined vision, supported by actionable strategies to advance supplier diversity objectives. This approach includes setting clear, market-specific spending targets, identifying procurement categories that have greater opportunity based passed success, and building relationships with suppliers by understanding their needs and their customers’ needs. In addition, internal teams should have collaborative discussions on supplier diversity across the entire business rather than in silos.   Partnering with Companies at Every Level “Every large company was once small.” – Kennedy Oates, VP of Global Procurement, Amazon Amazon is redefining procurement by challenging the perception that only large companies can serve large corporations. Its approach embraces partnerships with businesses of all sizes, embedding supplier diversity as a core element of its supply chain. While direct spending with certified Tier 1 diverse suppliers is central to Amazon’s SDI program, the company further amplifies its impact by encouraging Tier 1 suppliers to include diverse Tier 2 businesses in their procurement processes. For example, Amazon sets specific spend targets in contracts with Tier 1 suppliers to use Disadvantaged Business Enterprises, creating a positive ripple effect that brings opportunities to underrepresented companies deeper in the supply chain. To learn more about the Partnership’s Supplier Diversity workstream, contact LaTanya Flix.
Read More
Economic Development

Geothermal Startup Sage Geosystems Highlights Potential for New Energy in Houston

11/12/24
Long known as the energy capital of the world, Houston is proving its merit as the industry embraces an all-inclusive approach to energy sources. Beyond the wealth of oil and gas capital, Houston has become a landing spot for numerous solar, wind and battery storage investments. Companies like Fluence Energy, Renewable Parts and Solar Plus have chosen Houston for its manufacturing of innovative energy products. Geothermal Energy: An Untapped Resource Geothermal energy, often unsung in the new energy landscape, can be found beneath our feet, harnessing the power of heat lying underground. In conventional geothermal power plants, wells are drilled into geothermal reservoirs to access hot water or steam, which is then brought to the surface. This steam is used to drive turbines that generate electricity. Sage Geosystems is changing that by pursuing geothermal potential in rock that is hot but doesn't have the large volumes of water to bring the heat to the surface. Hot, dry rock enables geothermal power generation in many more places as the geology is more prevalent which enables geothermal to now be deployable almost anywhere in the world. Sage Geosystems: Leading Geothermal Innovation Houston is seeing its chance to make a mark with geothermal thanks to companies like Sage Geosystems, founded in 2020 with its headquarters near Bush Intercontinental Airport. Sage works to build the technology that makes this renewable energy a greater force in the worldwide energy transition, engaged in contracts and partnerships with local energy providers, major government agencies like the U.S. Department of Defense (DOD) and hyper-scalers like Meta Platforms. On the public utility side, the company recently partnered with the San Miguel Electric Cooperative to build the first geopressured geothermal system. The technology used can be paired with solar and/or wind to convert these intermittent clean energy sources to 24-hour power generation, or it can be used to move these clean energy sources from a time of day when the demand is low to a time of day when the demand is high, stabilizing the utility grid and helping mitigate the issue of blackouts and brownouts. The facility will be commissioned in December. Sage has three ongoing projects with the DOD. The U.S. Air Force recently provided Sage with $1.9 million in Tactical Funding Increase (TACFI) funding to perform a geothermal demonstration with electricity generation, which will take place in Sage's test well in Starr County, Texas with a targeted completion date of Q3/Q4 2025.  The Defense Innovation Unit (DIU) has funded two geothermal feasibility studies for the U.S. Army installation of Fort Bliss in El Paso and the Naval Air Station CC in Corpus Christi. Sage is performing these feasibility studies with the University of Texas Bureau of Economic Geology. The intent of these studies is to evaluate the technical and economic feasibility of geothermal system installations using Sage's Geopressured Geothermal System (GGS) technology at these two DOD installations. Collaboration Powers Innovation in Houston As evidenced by the above, collaboration plays a central role in the growth of Sage Geosystems. The company has not only partnered with utility companies and major governmental institutions, but also collaborated with the Rice Alliance for Technology and the Greater Houston Partnership to facilitate work with institutions of higher learning like the University of Houston and Rice, venture capital firms, and established energy corporations such as ABB, Chesapeake (now Expand Energy), Nabors, and Geolog. This sense of collaboration is one of the many reasons Sage Geosystems has thrived in Houston, along with the infrastructure, talent and innovative spirit that propels local companies to success. The Houston Advantage for Energy Startups “While Texas is the top energy state in the U.S., Houston is the heart. Houston provides not only access to the O&G industry, but also many utilities and others interested and/or working in energy...The Houston energy ecosystem and the benefits described above will continue to be critical in this scale-up plan." - Sage Geosystems CEO Cindy Taff Looking ahead, Sage is building its first commercial energy storage facility and will be performing a geothermal power generation demonstration with the U.S. Air Force in 2025.  Sage sees Houston as the best place to scale in Texas and throughout the world. "Geothermal energy represents a transformative opportunity for Houston as it further strengthens our position as the global energy capital. Sage Geosystems' innovative approach to harnessing geothermal resources exemplifies the spirit of collaboration, innovation, and commitment to sustainability that defines our region’s energy leadership.” - Partnership Senior Vice President of Economic Development Craig Rhodes  For any new energy startups looking to establish themselves, Taff recommends leveraging Houston’s many assets for future success. “Tap into existing knowledge that can be transferred to clean tech and partner with companies that know where to find the skills needed to give your startup a leg up,” Taff said. “Join local incubators like Rice Alliance for Technology and the Houston Technology Center and others, leverage Greater Houston Partnership and Greentown Labs for networking, collaborate with Rice University and University of Houston, and take advantage of Texas' business-friendly regulatory environment.” Sage Geosystems is a prime example of how energy startups use Houston’s assets as a springboard to meet their potential, along with renowned innovators such as Syzygy Plasmonics, Cemvita Factory, and Fervo Energy. Learn more about the business opportunities within Houston's energy industry and its all-inclusive energy ecosystem.   
Read More

Related Events

Economic Development

Houston's Advancements in Biotechnology

Join us for an insightful panel on the life science and biotechnology industry, where experts will dive into the latest trends, innovations, and transformative developments shaping the field. Our panelists, each…

Learn More
Learn More
Executive Partners