Japan to Tighten Screenings of Foreign Firms' Investment Plans

Tokyo, Jan. 24 (Jiji Press)--Japan plans to tighten its screenings of foreign companies' plans to make investment in the country, in order to address national security concerns, particularly regarding entities that may share information with foreign governments.

At Thursday's meeting of the council on customs and foreign exchange transactions, which advises the finance minister, the Finance Ministry presented the plan to strengthen the government's prior examinations of such investment plans.

To prevent important information from being taken abroad inappropriately, companies that may cooperate with foreign governments in collecting information will be required to undergo prior screenings if they invest in companies in designated industries such as nuclear power, weapons manufacturing, electric power and railways.

The ministry plans to revise government and ministerial ordinances related to the foreign exchange and foreign trade law in spring after soliciting public comments.

Japan requires foreign parties such as investors to report in advance if they acquire at least 1 pct of a company in a designated industry related to national security. The government can order a change or a halt to the investment if it finds a problem.

[Copyright The Jiji Press, Ltd.]