Talking to Tine Hasling Rasmussen from the Royal Danish Embassy in Tokyo

Tine Hasling Rasmussen leads the trade department (Trade Council) at the Royal Danish Embassy in Tokyo, where she, together with her team, advises Danish companies on how to enter or expand in the Japanese market. In this conversation, she reflects on Japan’s shifting global role, the challenges companies face on the ground, and where she sees room for stronger Danish engagement.

Japan’s Geopolitical Realignment: Treading Carefully Between the U.S. and China

Japan’s long-standing alliance with the United States remains a cornerstone of its foreign policy. Yet in today’s shifting geopolitical landscape, Japan finds itself increasingly balancing between tradition and necessity. China is now Japan’s largest trading partner, making economic pragmatism essential. At the same time, Japan is proactively working to protect its own critical technologies and secure supply chains—recognizing the strategic importance of resilience not only in relation to China, but globally.

“Japan maintains a long-standing and close relationship with the U.S., which they are keen to preserve. Rather than pulling back, Japan is actively trying to navigate the new geopolitical reality and securing its economic future.”

— Tine Hasling Rasmussen

For Danish companies, this steady alignment provides a degree of predictability and geopolitical assurance, reinforcing Japan’s status as a long-term strategic partner in Asia.

This balancing act reflects Japan’s strong advocacy for a rules-based international order, where disputes are handled through institutions such as the WTO.

Denmark’s Presence in Japan: A Niche but Notable Footprint

While Japan is not Denmark’s largest trading partner in Asia, it remains a market of strategic interest. According to data from Statistics Denmark[2] and the EU-Japan Centre for Industrial Cooperation[1]:

• Danish exports to Japan (2024): approx. DKK 14.3 billion (~¥300 billion)[1]
• Japanese exports to Denmark (2024): approx. DKK 4.2 billion (~¥88.2 billion) [1]

This trade surplus is primarily driven by Denmark’s strong exports in pharmaceuticals, food and live animals, and chemical products, which collectively account for over 75% of total exports to Japan according to the 2024 EU-Japan Trade Report [1].

Tine Rasmussen estimates that between 120 and 150 Danish companies are currently operating in Japan. Some have been present for years; others are more recently exploring opportunities. However, there is no precise data on the number of recent entries.

Navigating Entry: Sector-Specific Support is Crucial

Market entry into Japan requires more than just a good product—it demands cultural fluency, regulatory insight, and patient relationship-building. Tine Rasmussen emphasizes that support needs vary widely between sectors: some require guidance on regulation, others on finding local partners. But across the board, she says, language and culture remain persistent challenges.

“Language and culture are some of the most significant challenges for Danish companies entering Japan—cutting across sectors and company size.”

— Tine Hasling Rasmussen

Companies that succeed are often those that embrace the long-term nature of doing business in Japan—an approach that aligns with Tine Rasmussen’s observation that sector-specific support and cultural understanding are essential for building trust and momentum of doing business in Japan, including adapting communication styles and product positioning.

Signals of Openness: A Market in Gradual Transition

Despite its reputation for insularity, Japan has in recent years shown signs of greater openness—driven in part by initiatives such as the Digital Agency’s reforms[3], deregulation in the startup ecosystem, and targeted efforts to attract international talent and investment.

Tine Hasling Rasmussen acknowledges that Japan remains a challenging market but points to rising tourism and labor shortages as possible drivers of a more open stance—factors that could make it easier for foreign companies to gain a foothold.

Digitalisation, innovation hubs, and globally oriented policy shifts are steadily transforming Japan into a more accessible business environment. Sectors like health tech, sustainable design, and robotics are among the most open to international partnerships.

Editor’s note: This section is complemented by an interview with Yoshiro Tasaka, Director of Shibuya Startup Support, later in the report.

Future Outlook: What Will Shape Danish Interest in Japan?

Whether more Danish companies will turn their attention to Japan remains an open question.

“Japan’s economic future and attractiveness for foreign businesses is dependent upon many things both globally and domestically, It will be affected by developments and changes insupply chains, geopolitics, climate change, inflation, political priorities, cultural and demographic changes, protection and promotion of critical technologies and consumer behavior. All of this has an impact on the attractiveness of Japan .”

— Tine Hasling Rasmussen

Still, there are signs that sectors such as green energy, architecture, food innovation, and advanced manufacturing may offer new footholds for Danish firms.

Conclusion: Long-Term Thinking for a Long-Term Market

Japan is not a quick win—but for Danish companies willing to invest time and build relationships, it offers a strong long-term opportunity. As Tine Rasmussen points out throughout this interview, success depends on adapting to sector-specific demands, overcoming cultural and linguistic barriers, and building long-term trust. These conditions may be demanding, but they also lay the foundation for sustainable partnerships in one of Asia’s most resilient markets. For Danish companies willing to invest time and build relationships, it represents a high-value opportunity. As Tina Rasmussen’s insights and the trade data suggest, the Danish-Japanese partnership is founded not on volume but on shared values and complementary strengths.

In a world of shifting alliances and economic uncertainty, that kind of alignment may prove more valuable than ever.

References:

[1] EU-Japan Centre for Industrial Cooperation, EU-Japan Trade in Goods 2024, April 2025. https://cdnw8.eu-japan.eu/sites/default/files/eubij/2025-04-EU-JP-Trade-Report-2024.pdf

[2] Statistics Denmark, Foreign Trade by Country and Product (StatBank). https://www.dst.dk/en/Statistik/emner/oekonomi/betalingsbalance-og-udenrigshandel/detaljeret-import-og-eksport

[3] Ministry of Foreign Affairs of Japan, Japan-Denmark Bilateral Relations. https://www.mofa.go.jp/region/europe/denmark/data.html

[4] Embassy of Denmark in Japan, Key Economic Figures. https://japan.um.dk/en/the-trade-council/the-japanese-market/key-economic-figures