Comment: Japan's tightening of foreign investment screening emerges as a deal risk
By Sachiko Sakamaki ( June 2, 2023, 08:20 GMT | Comment) -- Quietly but steadily, Japan has been tightening foreign investment screening because of national security concerns, against a backdrop of rising geopolitical tensions. Last week, nine new sectors, including manufacturers of semiconductor-making tools were added to the list of “core industries,” that require foreign investors to file prior notifications under the foreign exchange and trade law. Even though people may not hear about blocked deals in Japan, as in the US and other jurisdictions, Japanese regulators are carefully assessing notified deals against the new national security risks. Foreign investors should be alert to potential risks to deal timelines as Tokyo steps up its economic security measures.Quietly but steadily, and against a backdrop of rising geopolitical tensions, Japan has been tightening foreign investment screening because of national security concerns. Last week, nine new sectors, including manufacturers of semiconductor-making tools were added to the list of “core industries,” that require foreign investors to file prior notifications under the foreign exchange and trade law. ...
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