Japanese companies have been frustrated by the recent suspension in the issuance of certain work visas by the administration of U.S. President Donald Trump, as it will force them to postpone the dispatch of employees and reexamine their business plans.
The Japanese government and economic circles are calling on the U.S. government to reconsider the visa and entry restrictions. However, the prospects for change look dim until the U.S. presidential election in November.
Hiroaki Nakanishi, chairman of the Japan Business Federation (Keidanren), said at a press conference Monday: "We have no idea what we should do. Do we have to make Japanese people who are working in positions of responsibility in the United States return home?"
Nakanishi is chairman of Hitachi, Ltd., which has about 20 resident employees in the United States whose work visas are to expire shortly. They have become unable to renew their visas, and the company also cannot dispatch new representatives to the United States.
The U.S. Embassy in Japan has suspended, in principle, interviews required for the issuance of visas since March, as a measure to prevent the spread of the novel coronavirus. It had already been difficult for Japanese companies to obtain visas for their employees, and the situation is likely to continue.
The suspensions are likely to affect not only production and development at actual workplaces but also the business operations of Japanese companies as a whole in the United States. Only a limited number of companies have managed to replace their resident employees earlier than planned, or to have their employees obtain visas that are not subject to suspension.
SoftBank Corp. said it "has put personnel changes on hold," while an official of Mitsubishi Electric Corp. said, "We can't move ahead with our personnel assignments as we planned."
According to a survey conducted recently by the Japan External Trade Organization (JETRO), 308 Japanese firms with footholds in the United States said their operations will be affected, including the dispatch of employees to the United States. More than 1,400 resident employees were said to be affected.
Corporate managers have voiced concern. A manager at a manufacturing company said if it can't send senior executives from Japan to U.S. companies that it has acquired, "We won't be able to run our company, which will affect our business operations."
-- No prospects of resumption
The dim prospects for the future issuance of visas has made it difficult for Japanese firms to determine how to respond. The Trump administration has suggested a policy of periodically reviewing the restrictions and limitations, but it is set to continue them through the end of this year and extend them if it believes that's necessary.
U.S. business circles that have hired many information technology personnel from abroad have strongly opposed the restrictions.
Tim Cook, chief executive officer of Apple Inc., wrote on Twitter that his nation of immigrants has always drawn strength from diversity, and said he was "deeply disappointed" by the declaration that the issuance of visas would be restricted.
The Japanese government has also called on the U.S. side to improve the situation. Foreign Minister Toshimitsu Motegi said at a press conference Tuesday that the suspension of certain types of work visas "could not only hurt Japanese companies' operations in the United States but also the U.S. economy."
The government has already conveyed its concerns to the U.S. government over the possible adverse impact on Japanese companies' investment in the country and their employment of local workers there, and it set to strengthen its response in the future.
However, Trump is seeking reelection in November and a recovery in U.S. employment is a top priority for him. Depending on how the U.S. economy is performing, the scope of people who are subject to the suspension of visa issuance may be widened and the suspension period may be extended. Japanese companies' struggle is expected to continue for the foreseeable future.
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