U.S. Treasury Secretary Discusses Exchange Rates and U.S.-China Summit with Japan's Takaichi: "Close Coordination" (Comprehensive)

Japanese Prime Minister Sanae Takaichi meeting with U.S. Secretary of the Treasury Scott Bessent (left) Photo by Yonhap News

Scott Bessent, U.S. Secretary of the Treasury, who is currently visiting Japan, met with Japanese Prime Minister Sanae Takaichi and other officials on May 12 to discuss macroeconomic policies, including exchange rates, and strategies for securing supply chains of critical minerals.

After meeting with Prime Minister Takaichi at the Prime Minister’s Office, Secretary Bessent told reporters that the strong U.S.-Japan relationship was reaffirmed and that they discussed key economic security strategies, such as securing rare earths and other critical minerals, as well as issues like Japanese investment in the United States.

Secretary Bessent also said that the talks touched on the upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping scheduled for May 14. However, when asked whether Prime Minister Takaichi made any specific requests regarding the U.S.-China summit, Secretary Bessent responded, "No."

The two sides also exchanged views on the Japanese government's intervention in the currency market. Secretary Bessent had previously expressed a critical stance on Japan’s approach to foreign exchange market intervention and has preferred raising interest rates. According to Bloomberg, which analyzed its own data, the Japanese government is estimated to have intervened in the foreign exchange market to defend the yen, spending about 10 trillion yen (approximately 9.3 trillion KRW) since April 30.

Regarding this, Secretary Bessent stated, "Both the U.S. and Japan agree that excessive (exchange rate) volatility is undesirable, and as in the past, we will continue to consult closely with Japan’s Ministry of Finance. The foundation of the Japanese economy is very strong, and this will definitely be reflected in the exchange rate going forward."

Japan’s Finance Minister Kataama, who met with Secretary Bessent before Prime Minister Takaichi, also told reporters after their meeting that "We confirmed our intention to continue cooperating closely, and there was full understanding on both sides." He added, "There is good cooperation between our countries regarding current exchange rate trends."

In this regard, the Nikkei reported that it appears the U.S. government has accepted Japan’s intervention in the foreign exchange market to counter the yen’s weakness.

Furthermore, Secretary Bessent and Finance Minister Katayama agreed to promote international cooperation to strengthen supply chains for critical minerals. According to Finance Minister Katayama, Secretary Bessent said during their meeting that China’s export restrictions on critical minerals are unfair and that the U.S. will continue to raise this issue.

Meanwhile, after concluding his schedule in Japan, Secretary Bessent will travel to Seoul on May 13 to meet with President Lee to discuss tariff negotiations and the U.S.-China summit. In addition, Secretary Bessent will hold talks in Seoul with Chinese Vice Premier He Lifeng to discuss trade issues ahead of the meeting between U.S. President Donald Trump and Chinese President Xi Jinping.

This content was produced with the assistance of AI translation services.