business

Japan to tighten foreign investment rules for national security

11 Comments

The government is set to tighten regulations on foreign investment in Japanese companies in areas sensitive to national security, including space development and nuclear energy, government sources said.

The government will revise the foreign exchange law to require foreign investors to seek prior approval before obtaining a 1 percent or higher stake in such a company, lowering the threshold from the current 10 percent, the sources said. It will submit a relevant bill to the Diet during its session that started Friday.

The stricter rules will also cover arms producers as well as the aeronautics industry, they said, while the government also plans to simplify procedures to encourage foreign investment in sectors not related to national security.

The move comes as the United States and European nations have enhanced investment controls amid growing concern about possible leaks of sensitive technology to countries such as China.

The government will also require foreign stakeholders to give prior notification before influencing management through measures such as dispatching board members and selling core businesses, the sources said. Violators will be ordered to sell their shareholdings.

© KYODO

©2019 GPlusMedia Inc.

11 Comments
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Well, Japan is far "safer" by having rich Japanese oligarchs manipulate stocks and policy than some wiser and more objective foreigners ever would. (Sarcasm). Nothing like having particular stocks roped off only for Japanese to play with: no more Nissan issues.

3 ( +5 / -2 )

Better late than never. The government should have tightened regulations much earlier on foreign investment in defense and other sensitive industries. Also, foreign nationals are buying up a lot of Japanese land and the government should do something about it too.

5 ( +6 / -1 )

I agree with @The Rat in the J Gov only targeting foreigners seems rather biase. National Security issues should involve everyone being put under scrutiny.

0 ( +2 / -2 )

The government will also require foreign stakeholders to give prior notification before influencing management through measures such as dispatching board members and selling core businesses, the sources said. Violators will be ordered to sell their shareholdings.

Is this to prevent the nissan debacle from occurring again. Your money is welcome but then you need permission from the government to have a say how your investment is managed.

Meanwhile, J-companies buy security sensitive companies abroad like westinghouse or chip companies freely. Who in his right senses would want to invest in japan with all the regulations targeting foreigners.

-1 ( +1 / -2 )

Too little too late.

Chinese “investors” have been buying up strategic resource land, especially water sources and forests in Hokkaido for quite some time. They have also been buying up real estate adjacent to US and SDF military facilities.

3 ( +3 / -0 )

Meanwhile, J-companies buy security sensitive companies abroad like westinghouse or chip companies freely.

Because Japan is considered trustworthy and actually pays patent fees for borrowed technology.

2 ( +3 / -1 )

There is negligible foreign investment in these areas, anyway. And how does the govt propose to force companies that have already acquired in excess of 1% to divest themselves of shares that were legally purchased?

1 ( +1 / -0 )

Nothing like having particular stocks roped off only for Japanese to play with: no more Nissan issues.

Nothing like having Chinese investors buy up all of your land and corporate stock so the CCP would effectively own your country. Just ask Australia.

1 ( +1 / -0 )

Because Japan is considered trustworthy and actually pays patent fees for borrowed technology.

Lol, really?

I know plenty of large Japanese companies who do exactly that but in a roundabout way. Often when you are a venture company, they will partner with you and then with their superior patent teams take all the surrounding patents, eventually forcing the venture to sell out cheap to them or go bankrupt.

0 ( +0 / -0 )

Poor working minded & hearted Japanese employees are to fear, not foreign investments. Good investments are leaving Japan because there is nothing good any more to invest in. Even the good Japanese felt that it is a waste of money in this country. Fear of investments ???. Someone is thinking too highly of themselves.

0 ( +0 / -0 )

@Meiyouwenti

Are you suggesting that as a Permanent Resident I cant buy / own Land here in Japan... if so, then you're too late! And should your thoughts be agreed upon by the Japanese Politicians, then it's time for a mass exodus from Japan.... perhaps then you should start to learn to play the violin.

0 ( +0 / -0 )

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