Japan to strengthen screening of foreign investments with US-style panel

The panel will aim to prevent leakage of critical technologies and intelligence. Read more at straitstimes.com.

TOKYO – The Japanese government decided on March 17 to strengthen screening of foreign investments in the country by setting up a cross-ministerial, US-style panel to prevent leakage of critical technologies and intelligence.

Through a revision of the foreign exchange and trade law, the government of Prime Minister Sanae Takaichi seeks to ensure that it can identify foreign investments considered risky in terms of national economic security.

Ms Takaichi had called for the establishment of a Japanese version of the Committee on Foreign Investment in the United States (CFIUS) when she ran in the presidential election of the ruling Liberal Democratic Party (LDP) in autumn.

Establishment of the panel was also included in the ruling coalition agreement signed by the LDP with the Japan Innovation Party in October.

In her policy speech to Parliament in February, Ms Takaichi stressed the new entity would improve the effectiveness of screening of inbound direct investments.

The screening by the envisioned panel will involve the Ministry of Finance, the Ministry of Economy, Trade and Industry and the National Security Secretariat at the Cabinet Office.