Japan's plan to tighten FDI screening revives security–investment trade-off
By Sachiko Sakamaki ( January 26, 2026, 07:21 GMT | Comment) -- Japan is considering expanding foreign investment screening to cover indirect acquisitions of Japanese companies, aligning its rules more closely with other industrialized economies amid rising economic security concerns. While the proposed changes under the Foreign Exchange and Foreign Trade Act would close a long-standing legal gap, political uncertainty, weak enforcement and Japan’s reliance on foreign capital could complicate efforts to strike a workable balance between national security and investment openness.Amid rising geopolitical tensions, Japan’s current administration is reconsidering how far its foreign investment screening should extend, particularly when control of Japanese companies changes hands outside the country....
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