This month I’ll make a quick introduction to Japan’s new rules for foreign investments. I recently published a short article for Z’Xent Pro, which is running business-japan.jp.
Last year, Shinzo Abe, the Prime Minister of Japan, approved an update to the foreign exchange law. It will strengthen the control of foreign investment in companies, and the rules will apply to about 400-500 of Japan’s over 3800 listed companies, which are connected to specific sectors of national security.
The background to the revision is to prevent influence from abroad in important companies and therefor strengthen national security. Last November, the Japan diet updated the “Foreign Exchange and Foreign Trade Act” to lower the bar of the shareholding ratio of listed companies from 10% to the much lower 1 % threshold. The sectors include oil and other utilities, nuclear power, weapons, cyber-security, telecommunications, and railways…