Japan to limit foreign investment in 9 new security-sensitive areas
The Japanese government said Monday it will add nine more sectors, including semiconductors and storage batteries, to its list of core areas in which foreign investment is limited due to national security concerns, starting on May 24.
Foreign investors purchasing a stake of 1 percent or more in a company in any of the designated core sectors must report in advance to the Japanese government for pre-screening under a law on foreign transactions.
Japan has been stepping up efforts to make supply chains more resilient for critical items, alarmed by China’s increasing dominance.
The other sectors to be added include machinery and industrial robots, fertilizers, permanent magnets, metal 3-D printers and marine equipment, the government said.
Under a law on promoting economic security, the government has designated critical items that are eligible for financial aid to ensure stable supplies.
The addition of the nine sectors means all designated critical materials will now be covered and foreign ownership for firms dealing with such products will be subject to government scrutiny.