Japan proposes "J-CFIUS" reforms under FEFTA

1 May 2026

Japan has entered the legislative phase of its proposed “Japan-style CFIUS” reforms.  The Cabinet has submitted a bill to amend the Foreign Exchange and Foreign Trade Act (FEFTA) to strengthen the national security screening of inbound investments. The proposed amendments expand the scope of transactions subject to screening, introduce structured mitigation and post-closing intervention tools, and signal a shift to a more centralised, security-focused review. If enacted, the reforms would affect foreign investors, including those involved in indirect acquisitions and foreign‑over‑foreign transactions involving Japanese businesses.

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