Japan to Toughen Regulations on Foreign Investment in Medical Makers

Politics

Tokyo, June 15 (Jiji Press)--The Japanese government said Monday that it will toughen regulations on foreign investment in domestic makers of drugs for infectious diseases and advanced medical equipment including ventilators.

The move is aimed at preventing domestic medical manufacturers from being acquired by Chinese or other foreign entities and ensuring stable domestic supplies of medical products, with the fight against the COVID-19 epidemic expected to be prolonged.

The government announced its decision to add the medical makers to the list of national security-linked firms under the revised foreign exchange and trade law. The change will be effective from July 15.

The revised law, put into force on June 7, requires advance notice to the government of the acquisition by foreigners of an equity stake of one pct or more in any of the domestic companies on the list.

A total of 558 companies in 12 fields including weapons, aircraft, space, nuclear energy, communications and railways are currently on the list.

[Copyright The Jiji Press, Ltd.]

Jiji Press