09 September 2019

The Japanese government said that high-tech industries will be added to a list of businesses for which foreign ownership of Japanese firms is restricted.

Effective August 1st, the new rule comes in amid heightening pressure from the US in dealing with cyber-security risks and technological transfers involving China. 

Japan did not mention specific countries or companies that will be impacted by applying existing foreign ownership restrictions to the IT and telecom industries. 

“Based on increasing importance of ensuring cyber security in recent years, we decided to take necessary steps, including addition of integrated circuit manufacturing, from the standpoint of preventing as appropriate a situation that will severely affect Japan’s national security,” Japanese ministries said in a statement. 

The new rule will be applied to 20 sectors in information and communications industries.

Japan made the announcement on the same day visiting US president Donald Trump and Japanese prime minister Shinzo Abe held talks in Tokyo on trade and other issues.