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SECURITY

Regulations on foreign investment to be tightened

  • June 23, 2021
  • , Yomiuri
  • JMH Summary

Yomiuri gave top play to a GOJ policy of amending relevant legislation in order to enable government authorities to force local business enterprises with national security expertise, such as on nuclear power generation and defense, to take corrective measures on what the government deems improper business practices even after they accept foreign capital investment. The GOJ amended the Foreign Exchange Law last year to restrict foreign capital investment in such companies by allowing METI to examine proposed investments under certain conditions. Since the GOJ cannot have a say once such investment is completed, the GOJ has reportedly concluded that post factum regulations are necessary to protect national security technology held by local defense contractors and other companies in view of the ongoing controversy engulfing Toshiba in which foreign hedge funds that have stakes in the tech giant have demanded that it increase dividends. The ministry has reportedly assisted Toshiba in countering the hedge funds’ pressure since the company has critical nuclear power and quantum computing technology.

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