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| Image: Flickr User - Shibuya246 |
By Shang-su Wu
Japan’s railroad industry could become a significant tool of foreign policy.
Since the first operational line between Shinbashi and Yokohama opened in 1872, rail has become a major Japanese industry, even creating several milestones, such as the Asia Express and Shinkansen. Although Japan’s exports in this industry are considerable and the country also builds railroad facilities overseas, those deals are mainly either commercial or aid, such as Official Development Assistance (ODA). With its active foreign policy, the second Abe administration offers the Japanese railroad industry the potential to play a salient role in diplomacy.
First, given demographic changes and competition from highways and aviation, domestic Japanese demand for trains is decreasing. Since the period of the “bubble” economy, a number of railroad lines, especially in remote areas, have gone out of service, and this trend is unlikely to stop any time soon, with JR Hokkaido just announcing another wave of local line closures. As a result, Japanese rail manufacturers need to look overseas for new markets.
Second, rail sends a strong geostrategic signal. On the one hand, rail is still an efficient means of land transportation, one that can stimulate trade and secure the supply of certain resources or materials. In China’s “One Belt, One Road” policy to extend its geopolitical influence, railroads are a key element, especially high-speed rail. Tokyo could use railroad projects to counter Beijing’s geopolitical expansion. With its excellent safety record, high reliability, and original technology, Japan’s railroad industry may still be able to compete with cheaper Chinese counterparts. Moreover, given its geographic location and political environment, Japan is unlikely to represent the same kind of geopolitical pressure to other countries of the region that Beijing does.
Third, given a lack of uniform signal, power, and other technical conditions, in contrast to aviation, sea transport, and highways, railroad is not universally compatible with alternative platforms. In other words, obtaining a contract to construct a railroad would to a certain extent ensure subsequent economic opportunity, which in turn would be helpful for Abe’s economic recovery agenda.
Read the full story at The Diplomat