Japan Diet OKs Bill to Toughen Rules on Foreign Investment
Newsfrom JapanPolitics Economy
Tokyo, Nov. 22 (Jiji Press)--The Diet, Japan's parliament, on Friday enacted a bill to revise the foreign exchange and trade law to tighten restrictions on foreign investment in listed companies with national security-related operations.
The bill was adopted unanimously at a plenary meeting of the House of Councillors, the upper chamber. The bill cleared the House of Representatives, the lower chamber, on Nov. 14.
Following the revision, foreign investors will be required to notify the government before acquiring a stake of one pct or more in companies related to weapons, nuclear energy, semiconductors, railroads and other areas. The current threshold is 10 pct.
The procedures will be exempted in most cases under some conditions, such as when investors do not become board members.
Prior notification will be unnecessary in principle for transactions by financial institutions.
[Copyright The Jiji Press, Ltd.]