Japan is planning to tighten scrutiny of foreign investment, emulating the US with a new body to strengthen economic security that overseas companies and activist investors hope will streamline a complicated vetting process.
Prime Minister Sanae Takaichi last week unveiled plans for a sweeping overhaul of Japan’s foreign investment screening system, which has long been accused of entangling buyout bids in months of paperwork.
The new agency will be modelled on the Committee of Foreign Investment in the United States, which vets overseas investments for national security risks. The committee was central to former US president Joe Biden’s attempt in 2024 to block Nippon Steel’s acquisition of US Steel.