Japan

Japan

Revises rules on foreign investment

22 Nov 2019

On 22 November 2019, Japan's parliament passed a bill which would revise the Foreign Exchange and Foreign Trade Act. This bill will tighten regulations on foreign investments in listed Japanese companies related to national security, including arms production and nuclear energy. The revised Foreign Exchange and Foreign Trade Act will require overseas investors to seek prior notification from the government before obtaining a 1 percent or higher stake in a listed Japanese firm engaged in business related to weapons, nuclear energy, semiconductors, railroads and other areas, lowering the threshold from the current 10 percent. The amended law is expected to take effect in spring 2020.