Japan

Japan

Revises rules on foreign investment

07 May 2020

On 22 November 2019, Japan's parliament passed a bill, which revised the Foreign Exchange and Foreign Trade Act. This bill tightened regulations on foreign investment in listed Japanese companies related to national security, including arms production and nuclear energy. The revised Act requires 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 came into force on 7 May 2020.