Japan to Tighten Foreign Investment Reporting Rules to Boost National Security, Monitor Chinese Firms

Japan to Tighten Foreign Investment Reporting Rules to Boost National Security, Monitor Chinese Firms
Pedestrians walk in front of an electric quotation board displaying the numbers on the Nikkei 225 index at the Tokyo Stock Exchange in Tokyo on Oct. 3, 2019. Kazuhiro Nogi/AFP via Getty Images
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TOKYO—Japan will tighten reporting requirements for foreign investment in industries related to national security, officials said on Oct. 8, reflecting broad concern that China could gain access to key technology and confidential information.

Under the change, expected to become a law next year, foreign investors in Japan’s defense industry, nuclear power, utilities and telecoms will have to report holdings once they amass a 1 percent stake in a company, as against 10 percent now.