Japan’s New Gatekeepers: Intelligence Agency to Screen Foreign Investments

Japan is set to usher in a significant change to its foreign investment landscape, mirroring a strategy long employed by the United States. In a move aimed at bolstering national security and protecting critical industries, the country’s intelligence agency will now be tasked with screening foreign investments.

This pivotal development signals a deeper commitment from the Japanese government to safeguard its strategic assets, technologies, and infrastructure from potential risks associated with foreign ownership. While Japan has long welcomed foreign capital, this new layer of scrutiny suggests a more cautious approach, particularly in sectors deemed vital for national security.

The emulation of the U.S. model indicates a global trend among advanced economies to protect key technologies and supply chains. For foreign investors eyeing opportunities in Japan, this means a more rigorous due diligence process, with potential investments undergoing a comprehensive review by intelligence bodies. Companies will need to be prepared for increased transparency and a thorough examination of their origins and intentions.

This evolution in policy underscores Japan’s proactive stance in adapting to a complex geopolitical environment, ensuring its economic resilience and technological sovereignty for the future.

Source: Original Article