Feb 18 β€’ 06:02 UTC πŸ‡¬πŸ‡§ UK Guardian

US and Japan unveil $36bn of oil, gas and critical minerals projects in challenge to China

The US and Japan announced a $36 billion investment plan for oil, gas, and critical minerals projects designed to strengthen economic ties and counterbalance China.

The US and Japan have unveiled a significant investment initiative amounting to $36 billion aimed at developing oil, gas, and critical minerals projects. This announcement comes as US President Donald Trump and Japanese Prime Minister Sanae Takaichi highlight the importance of solidifying their countries' economic partnership amidst ongoing tensions with China, especially regarding Taiwan. The deal represents a broader strategic effort by both nations to enhance their energy security and technological competitiveness.

Among the key components of this investment are plans for a new power plant in Portsmouth, Ohio, which is being promoted as the largest natural gas-fired facility in US history, alongside a deepwater crude oil export facility in Texas and a synthetic diamond manufacturing site. Although the statement from Takaichi did not explicitly address China, it stressed the investments' significance for improving economic security for both Japan and the US, highlighting a growing awareness of the geopolitical landscape.

Moreover, this collaboration signals a strong commitment from Japan to align more closely with US interests, particularly in sectors critical to economic power. The projects are expected to create jobs and stimulate growth, while also serving as a counterweight to China's influence in the region. As diplomatic tensions continue, this partnership could play a vital role in shaping the future dynamics of international trade and security in Asia and beyond.

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