GEOFF BENNETT: Japan's Prime Minister Fumio Kishida is here in Washington, part of a state visit to the U.S. and a trilateral summit with the Philippines tomorrow.

Japan is changing its defense posture, rearming in the face of a surging China.

Ahead of tomorrow's presidential meetings, we're joined from the White House by the U.S. ambassador to Japan, Rahm Emanuel.

Thanks for being with us.

Welcome to the "NewsHour."

RAHM EMANUEL, U.S.

Ambassador to Japan: Geoff, thank you.

GEOFF BENNETT: So, among the many agenda items when these two leaders meet tomorrow is increased military cooperation, enabling military commanders from the U.S. and Japan to better work together.

What's the practical impact of that, especially when it comes to containing China?

RAHM EMANUEL: Well, I would actually not use the word containing.

I would use the word deterring from doing something that would change the status quo.

Second is, the structure we have was actually established over the years since 1960.

It's not appropriate for the future and the type of challenges we face today.

Second is, Japan has done a series of things, major changes.

They went from 1 percent of their GDP towards the defense to 2 percent.

They're acquiring counterstrike capability that didn't exist before.

They're willing to start to export defense technology that they had prohibitions on before.

And so the force structure change is to better integrate with the new joint command structure that they're setting up.

Today, all our decisions have to go back to Honolulu.

Putting it forward brings an integration and an effectiveness and it brings the credibility to the deterrence that didn't exist before.

And, to me, it's more appropriate because the challenges we faced in the 1960s are not the challenges we face in 2024 and beyond.

GEOFF BENNETT: So... RAHM EMANUEL: That is why it's a demarcation point.

GEOFF BENNETT: We spoke with the prime minister on this program last week.

And, to your point, we have seen a real shift in that country's post-World War II pacifist stance.

What is the U.S.' expectation for how Japan would help the U.S. in -- against China if China were to attack Taiwan, which is a real threat?

RAHM EMANUEL: Well, I think the main thing - - well, wait a second.

You also have a state visit.

And, again, I don't -- Geoff, I would try to slightly look at it a different way.

Right now, this week started with something that hadn't happened before.

The United States, Japan, Australia, and the Philippines did a joint naval exercise, where you have a very small, small-K, kinetic effort by China to target, isolate the Philippines.

We're putting together an alliance, multiple nations, say this is not consequence-free and the Philippines are not going to be isolated.

It's China that's isolated.

And if you ask me where the effort here, it's not, again, containment.

It's deterrence and bringing credibility.

At the end of this week, at the end of the state visit, you will have a first ever historic trilateral meeting between the president of the United States, the prime minister of Japan, and the president of the Philippines.

That is also credibility on the diplomatic side, working with your defense preparation and credibility there, where the defense and the diplomatic efforts bring one level of deterrence to China.

And, again, it isolates China, doesn't contain them, and makes it sure that there's a calculation and an understanding and appreciation of a consequence to the actions China takes.

So, what Japan's doing is what it used to do was think consequentially about Japan and its self-defense forces.

We were an insurer of that from its own security, but it is now with the alliance.

I think this era, the past was known as alliance protection.

The era going forward is going to be alliance projection.

And Japan's a full partner, whether you're dealing with trilateral relationships, whether you're dealing with the Quad, whether you're dealing with development and economic assistance and economic integration with the Philippines or with Korea.

This is a -- the constant now is Japan going step by step, shoulder to shoulder with the United States on behalf of a view that we have rules, and they are to be adhered to throughout the international system, and they're not the raw exercise of power, but rules and the rules of law that will be the modus operandi.

GEOFF BENNETT: Well, as these two countries stand shoulder to shoulder, as you say, there is this point of contention over Nippon Steel.

President Biden says he's opposed to this to the sale of Nippon -- of U.S. Steel to Japan based Nippon Steel.

He sees it as an economic and a national security issue.

How do you see this matter resolving?

RAHM EMANUEL: Well, look, let me just also put that in context.

First of all, Japan's the number one investor in the United States for the last four years.

They employ nearly a million Americans.

We're the number one investor in Japan.

And we have been for the last four years.

Second fact I put out there, about six, seven weeks ago, Mitsubishi Corporation -- no, rather Mitsui Corporation from Japan won a $20 billion dollar contract to build a crane -- ship crane factory here in the United States to replace all the cranes and not have China's cranes in our shipyards across -- rather, in our ports across the United States.

Nothing says trusted ally like that.

(CROSSTALK) GEOFF BENNETT: So, in that case, what difference would it make if Japan owned U.S. Steel?

RAHM EMANUEL: Second is, in 2021, when some foreign entities were thinking of buying Toshiba, Japan invoked national security.

So the relationship is deeper, the relationship is more complex than a single commercial deal.

And the president has said straight up that he's going to have the back of the United States steelworkers and other workers.

He's a man of his word.

And he's also going to say we're going to invest in the alliance, and they're not in conflict with each other.

And I do -- I think that, looking at this relationship -- and I started my politics nationally back in 1992 for Bill Clinton -- this relationship has never been stronger and more solid foundation than where it is today.

And there's more at stake than a singular commercial deal or transaction where the two parties have a different view.

(CROSSTALK) GEOFF BENNETT: Yes, I understand your point, but if the U.S. and Japan are such close allies, then what difference would it make if Japan actually owned U.S. Steel?

RAHM EMANUEL: Well, first of all, Japan wouldn't.

It would be a Japanese company.

Second of all, what I would say to you, Geoff, is that, when it comes to steel, given its national security interests, that is what being invoked and a priority for the United States and clearly stated by the president.

GEOFF BENNETT: How is it... RAHM EMANUEL: And it doesn't change the relationship or the economic interests or the confidence both countries have and the companies in both countries have in investing in each other, which is why, for four consecutive years, Japan's the number one investor in the United States, and will continue to be, and creating over a million Americans working for Japanese companies.

GEOFF BENNETT: How is the administration aiming to future-proof some of this work, so that these efforts which you see as so vital to stability in the Indo-Pacific aren't tied to whomever occupies the Oval Office post-November -- or post-January?

RAHM EMANUEL: Well, first of all, let me -- I mean, the way I look at it is, that's a yes and a no.

And I think, on the yes part is, you have things like what we're going to do on missile defense technology or what you're going to do on exercises and shared security arrangements that go into the -- kind of the bones and the DNA of the institutions and the relationship.

But we should be very clear.

President Biden believes that allies and alliances make America safer and stronger.

That also then requires not kind of hitting an equilibrium, but constantly investing in it.

And the reason President Marcos is coming here and the reason the Japanese prime minister has agreed to a first-ever historic is because they trust America.

And if we think that we're going to accomplish anything in the Indo-Pacific solo, we don't understand.

That is a different view from the strategy we have had, the different view that isolating China, rather than China's being able to isolate a Philippines or a Japan.

And so it's not an equilibrium.

This has some value that will go past any one administration because it's in our strategic interest.

But it also requires a commitment by a president who believes fundamentally that the strategic value of allies and alliances in the safety and security, not only of the United States, but the values that we have and the interests that we want to see advanced.

GEOFF BENNETT: That is the U.S. ambassador to Japan, Rahm Emanuel.

Thanks for your time this evening.

We appreciate it.

RAHM EMANUEL: Thanks, Geoff, yes.