Clifford Chance
Amendment to Foreign Exchange and Foreign Trade Act of Japan: Expansion of Regulated Sectors for Foreign Direct Investments into Japan
1 August 2019
Japan currently requires prior approval for foreign direct investments into a very limited number of sectors closely related to national security and public order. With effect from 1 August 2019, however, such regulated sectors will be expanded to include information processing equipment and software, and a wider range of telecommunications and IT services. Multinationals, acquirers and investors in such additional sectors must review existing plans and bear this amendment in mind, to allow time for such prior approval process and to resolve any uncertainty surrounding their transactions.
