Japan to increase industries in which foreign investment is restricted

The Japanese government has decided to add nine sectors to the list of industries in which foreign investment is restricted. The move is aimed at ensuring economic security in the country.

The Finance Ministry plans to add the nine sectors, including semiconductors, batteries, machine tools and industrial robots, to those subject to restrictions under the foreign exchange law.

Under a law to promote economic security in the country, the government has designated key fields as critical products. These products are considered vital to people's lives, and Japan is dependent on certain countries and regions to supply them. The government plans to provide assistance to ensure their stable supply.

The Finance Ministry decided to make the products subject to the foreign exchange law. Foreign investors who want to purchase 1 percent or more of the shares of companies in these sectors will have to submit applications to the government in advance.

The government has started soliciting public opinions on the plan.

It intends to secure supply chains of the critical products and prevent the outflow of technologies by tightening controls on foreign investment.