Once Japan recoups its investment, it then reaps only 10 per cent of the cash flows from the project, to America’s 90 per cent. Yes, Japan has nominal input via a consultative committee into which projects are chosen, but there are no Japanese on the more powerful investment committee and it’s Trump who makes the ultimate call. Yes, Japan can elect not to fund an investment, but if it does so the US may impose new tariffs on Japan “at the rate determined by the President”.
Because of America's trade deficit, they must continually attract foreign investment in order to maintain the value of the USD. Unfortunately for them, this leads to an ever increasing outflow of surplus value that must then be reinvested.
So the solution to this problem that the Americans have come up with is that they force their allies to reinvest in America, but without the surplus value. Not only that, but with inflation this "investment" probably has a negative real return.
Unlike treasury bondw investments, there is no possibility of "tanking" the market either.
I must say, I am impressed by this strategy.