Photo: REUTERS

German Chancellor Olaf Scholz will begin a state visit to Japan today.

The trip will see Scholz and Kishida discuss pertinent issues such as energy security and overall economic cooperation. The Russia-Ukraine war has pushed both countries to undergo a significant policy shift by putting greater emphasis on economic ties with allies and partners. This has played an even more beneficial role for Japan who already had persistent security issues with Russia over the disputed Kuril Islands between the two seafaring states.

Within this new paradigm of economic instability and insecurity, both countries are likely aiming to diversify their trade away from Russian allied China, which is a large export market for the two. This was likewise demonstrated by Scholz’s previous visit to Japan prior to his trip to China.

As the world’s third and fourth largest economies by nominal GDP, extensive trade opportunities are present but will require several years to develop. Currently the largest portions of trade between them consists of automobiles and medical products. Another realm of cooperation may be in the arms industry with both countries committing to increased spending. Security cooperation is also likely on the table, but without current tangible outcomes present.