Japan to Tighten Foreign Capital Rules to Stem Tech Outflow
Tokyo, Sept. 18 (Jiji Press)--Japan is considering tightening rules on foreign investment in national security-related fields to bolster surveillance and prevent technologies from flowing out, informed sources have said.
The United States and European countries have already decided on similar steps, apparently wary of technology outflow to China.
In Japan, foreign investors are obliged to submit prior applications if they plan to acquire an equity stake of 10 pct or more in Japanese companies in designated sectors, including military technologies, aerospace, resource and transportation infrastructure, and communications and broadcasting.
The sources said the government is examining lowering the threshold for the prior applications and screenings to one pct.
The government hopes to submit a bill to revise the foreign exchange and foreign trade law, including the tighter rules, in an extraordinary session of the Diet, the country's parliament, seen starting in October, according to the sources.
[Copyright The Jiji Press, Ltd.]