Letter from Nikkei Asia's editor: The Washington watchers

Hello from Tokyo. When Thailand's government announced the discovery of one of the world's largest lithium deposits last week, expectations soared regarding its potential impact on regional EV production. However, Bangkok later toned down its rhetoric and corrected the estimated size of the deposit, providing a valuable lesson -- not only for the media but also for companies -- on the importance of strong judgment when evaluating information from governments or policymakers.

This week's Big Story looks at how Asian businesses are scrambling to keep up with U.S. politics as global interest in America's presidential race intensifies. A company's future depends on its ability to stay informed and how it anticipates, prepares for and mitigates geopolitical risks. U.S. policy changes that influence geopolitical events such as the war in Ukraine or target specific industries with sanctions can be a matter of life or death for global companies. As a result, they invest millions of dollars in lobbying efforts in Washington.

When it comes to that topic, I always remember an incident that shed light on the importance of U.S. lobbying for Japan decades ago. In 1987, the U.S. Department of Defense discovered that Toshiba Machine, a subsidiary of Toshiba, was exporting machine tools to the Soviet Union in violation of Western regulations concerning military technology.

After the violation was revealed, the chairman and president of the parent company, Toshiba, resigned, while Japan's government tried hard to reassure Washington that the incident wouldn't be repeated due to increased monitoring. But anger didn't abate in the U.S. Congress and it passed legislation to punish Japan, with broader Toshiba-bashing also spreading.

Toshiba felt