As President-elect Donald Trump touts the United States as a great place to do business, companies around the world are looking for how to answer his call.
Japanese tech billionaire Masayoshi Son, a colorful character known as much for his major failures as for his great achievements, laid out a path Monday, appearing alongside Trump at a news conference and pledging to invest $100 billion (£79 billion) over four years and create €100 trillion. jobs.
“He’s a great negotiator,” the CEO said, laughing on stage as Trump pressed him to double down on his commitment.
But many questions remain about Mr. Son's company, especially in light of the lack of details he has provided and the track record of similar investments during Trump's first term.
Mr. Son has previously spoken about the opportunity he sees in artificial intelligence, and Bloomberg reported in February that he was planning a $100 billion microchip project.
But his Softbank Group had only about a third of that, or $30 billion, in cash earlier this year and its global reputation took a hit after the implosion of previous bets, such as a major investment in coworking company WeWork.
As cameras rolled at Mar-a-Lago, Mr. Son avoided giving details on how he would finance his pledge.
Trump also did not demand specifics, presenting the pledge mainly as a sign of a broader revival of optimism in business circles, as surveys in recent weeks have reported.
“This historic investment is a monumental demonstration of confidence in America’s future,” the president-elect said.
Trump has indicated that upon his return to the White House, he plans to use his bully position to court foreign investment.
His campaign promises to cut both taxes and regulations have already energized Wall Street and pushed big companies to pursue large-scale ambitions.
Specifically, Trump said he would cut taxes for companies that make products in the United States and speed up approvals for companies investing $1 billion or more.
Investors expect him to greenlight buybacks and also forgo antitrust enforcement.
Still, there are concerns about Trump's campaign promises to crack down on immigration, which could hurt the workforce, and to raise tariffs on imports from China, Mexico and Canada . On top of that, he discussed the rollback of manufacturing and energy incentives put in place by President Joe Biden, which some investors like.
Political leaders from both parties often encourage business investments and often take credit when those businesses prosper. President Joe Biden, for example, has visited projects at companies such as chipmaker TSMC to highlight historic government-approved incentives for green energy and high-tech companies.
Monday's event recalled the familiar pageantry of Trump's first term, punctuated by high-profile investment announcements. Many of these planned projects were already in the works or were unclear about their chances of becoming a reality.
These include Taiwanese semiconductor giant Foxconn's plan to build a technology park in Wisconsin, which Trump boasted would become the “eighth wonder of the world.” Instead of creating more than 13,000 jobs and spending more than $10 billion, the company created fewer than 1,000 jobs and spent about $1 billion, according to CNBC.
Trump also said he would save a bankrupt auto plant in Lordstown, Ohio, with a Foxconn-backed electric vehicle startup and celebrated promises to create a million jobs over five years. by Jack Ma of Alibaba.
The automaker – Lordstown Motors – filed for bankruptcy and reorganized to become Nu Ride Inc earlier this year.
Meanwhile, Alibaba said it had “supported” 403,000 U.S. jobs in 2022, five years after Mr. Ma’s promise.
Mr. Son's relationship with Trump also dates back to his first election.
Shortly after Trump took the White House, the two men appeared together to discuss the $50 billion that Mr. Son planned to invest in the United States, as his company evolved into a sort of trading company. technology venture capital.
Its current holdings include American telecommunications company T-Mobile and British microchip designer Arm.
