Editorial

14:30 JST, February 4, 2025

Competition between countries over important technologies related to national security is intensifying. It is essential for the government to strengthen its screening of foreign investment in Japanese companies to prevent technology leakage.

Currently, there is a mechanism by which the government screens foreign investment in Japanese companies based on the Foreign Exchange and Foreign Trade Law. This is meant to prevent national security from being threatened by situations such as the leak of domestic technology.

With a 2020 revision of the law, prior notification is required for a foreign entity to acquire 1% or more of the shares of listed companies in fields such as nuclear power, energy, telecommunications and finance, which are important from a security........

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