Japan plans to revise its foreign investment screening law in 2026 to sharpen national security oversight and close loopholes in the current framework. The update to the Foreign Exchange and Foreign Trade Act (FEFTA) will streamline reviews after filings surged since the 2019 threshold cut.
The government may narrow IT-sector reviews to only critical cybersecurity areas and is considering creating a U.S.-style CFIUS body to better coordinate investment screening across ministries.
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The reform highlights Japan’s effort to balance national security with investment access, echoing U.S. moves to scrutinise foreign influence in critical tech and infrastructure sectors.
This article was written by Eamonn Sheridan at investinglive.com.
