The government plans to expand the scope of regulations on foreign investment in Japanese companies as early as within this year. Until now, the regulations have been applied mainly to nuclear-related and aircraft industries, which have potential military uses. About 20 industries, including manufacturers of smartphones and semiconductor memory, will be subject to the regulations. The move is aimed at preventing the outflow of key security-related technology, with China and other countries in mind.
The Foreign Exchange and Foreign Trade Law regulates investment by foreign companies. If technologies used in smartphones and semiconductor memory are exposed, Japan's security could be threatened as information technology becomes more sophisticated. The government therefore has decided to add those technologies to the regulation list.
As is already the case with nuclear-related and other industries, companies intending to buy 10 percent or more of shares in listed companies in about 20 industries will be obliged to report their purchase plan to the government in advance. If the government finds a problem while reviewing the plan, it will be able to order the plan to be changed or canceled.
In the United States and Europe, foreign companies are increasingly restricted from investing in advanced technology fields such as IT and cybersecurity. Japan will follow suit.
Read more from The Japan News at https://japannews.yomiuri.co.jp/
