On May 28, Japan’s parliament officially passed a revised law aimed at strengthening the screening mechanism for foreign investment into the country. The centerpiece of the new legislation is the creation of an inter-agency council, modeled after the U.S. Committee on Foreign Investment in the United States (CFIUS), tasked with preventing the leakage of critical technologies and national intelligence.
According to analysts, this move reflects Japan’s growing concerns over economic security amid escalating global technology competition. The new law will allow the government to intervene more deeply in foreign investment deals that could affect national interests, particularly in sensitive sectors such as semiconductors, artificial intelligence, and energy.
Sources from Kyodo News indicate that the new inter-agency council will include representatives from ministries such as Economy, Trade and Industry, Foreign Affairs, and Defense. This body has the authority to review and propose measures to block investments that pose risks to national security.
The revision is expected to create a more robust legal framework, helping Japan protect strategic technologies amidst tense international relations and rising foreign direct investment in sensitive areas.
