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Japan not excepted from new U.S. regulations on foreign investment

  • January 14, 2020
  • , Jiji , 10:31 a.m.
  • JMH Translation

WASHINGTON (Jiji) – On Jan. 13, the U.S. Department of the Treasury released final regulations that augment the authorities of the Committee on Foreign Investment in the United States (CFIUS), which examines national security risks posed by foreign-capital investments. Some of the regulations, including that on investment in companies handling critical infrastructure, will not be applied to the United Kingdom and two other nations. Japan was not among the excepted foreign states. The new regulations will take effect on Feb. 13.

 

Under the new regulations, CFIUS will be able to screen investments in U.S. businesses handling (1) critical technology, (2) energy, telecommunications, and transport infrastructure, and (3) personal data. It will also be able to scrutinize plans to obtain real estate, airports, and harbors located near military-related facilities. To date, investments not involving management rights [i.e., non-controlling investments] have been exempted from screening. With China in mind, however, the U.S. is strengthening its regulations, wary about [foreign investors] obtaining intellectual property rights.

 

The United Kingdom, Canada, and Australia have been excepted for the initial two years [of the application of the regulations] because they have strong security ties with the U.S. “We are leaving the door open to adding more countries to the list of excepted foreign states,” a senior Treasury official said.

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