Keiretsu

The prototypical keiretsu appeared during the Japanese economic miracle which followed World War II, amid the dissolution of family-controlled vertical monopolies called zaibatsu.

[4] During the inter-war period the zaibatsu aided Japanese militarism and benefited from their conquest of East Asia by receiving lucrative contracts.

[3] After the surrender of Japan the Allied occupation forces partially attempted to dissolve the zaibatsu which had worked closely with the militarists during the first half of the 20th century and during the war.

[3] However, the United States government later rescinded those orders in an effort to reindustrialize Japan as a bulwark against communism in Asia, so the zaibatsu were never completely dissolved.

The leading horizontal Japanese keiretsu, also referred to as the "Big Six", include: Fuyo, Sanwa, Sumitomo, Mitsubishi, Mitsui, and DKB Group.

The Japanese corporate governance code, effective from June 2015, requires listed companies to disclose a rationale for their cross-shareholdings.

[11] During the occupation of Japan, under the Supreme Commander of the Allied Powers, General Douglas MacArthur, a partially successful attempt was made to dissolve the zaibatsu in the late 1940s.

One effect of this structure was to minimize the presence of hostile takeovers in Japan, because no entities could challenge the power of the banks.

For instance, many troubled Japanese companies are faced with a new reality in which receiving financial support from their main banks is getting harder and unlikelier than ever before.

This changed environment, in turn, has led to a growing corporate acquisition industry in Japan, as companies are no longer able to be easily "bailed out" by their banks, as well as rising derivative litigation by more independent shareholders.

By April 2015, U.S. Trade Representative Michael Froman and Japanese Economy Minister Akira Amari, representing the two largest economies of the 12-nation Trans-Pacific Partnership, were involved in bilateral talks regarding agriculture and auto parts, the "two largest obstacles for Japan.

[15] During the two-day ministerial TPP negotiating session held in Singapore in May 2015, veteran US negotiator Wendy Cutler and Oe Hiroshi of the Japanese Ministry of Foreign Affairs held bilateral trade talks regarding one of the most contentious trade issues, automobiles.

They wanted Japanese dealer networks such as Toyota, Nissan, Honda, Mitsubishi, and Mazda to sell American cars.