Denmark and Japan: Strategic Partners in a Shifting Global Landscape – Tine Hasling Rasmussen

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, Tokyo finds itself increasingly balancing between tradition and necessity. China is now Japan’s largest trading partner, and maintaining economic stability means carefully managing this dual alignment.

“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 navigating 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 and the EU-Japan Centre for Industrial Cooperation:

• Danish exports to Japan (2024): approx. DKK 14.3 billion (~¥300 billion)
• 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].

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. 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 always the most significant challenges we hear from Danish companies entering Japan—cutting across sectors, company size, and maturity.”
— 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 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, deregulation in the startup ecosystem, and programs to attract international talent and investment. One notable example is the Shibuya Startup Support initiative, which actively supports international entrepreneurs and aims to transform Tokyo’s Shibuya district into a globally connected innovation hub. (Editor’s note: An interview with Shibuya Startup Support Director Yoshiro Tasaka is included later in this report.) Rasmussen acknowledges the market remains tough but adds that rising tourism and labor shortages could spur a more open stance—one that would benefit foreign companies seeking to establish a foothold.

Digitalisation, startup innovation, and international talent policies are all contributing to a more globally connected Japan. Sectors like health tech, sustainable design, and robotics are especially receptive to international partnerships.

Future Outlook: What Will Shape Danish Interest in Japan?

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

“So much depends on global developments: supply chains, geopolitics, climate change, inflation, political priorities, and consumer behavior—all of this affects Japan’s attractiveness.”
— 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 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 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