The government adopted a bill Tuesday to set up a Japanese version of the Committee on Foreign Investment in the United States (CFIUS), to conduct cross-ministerial assessments of foreign investments in Japanese businesses.
The government plans to submit the bill to revise the foreign exchange and foreign trade law to the current session of parliament.
The Japanese committee will be established to prevent information and technologies crucial to national security being leaked outside Japan.
During its screenings of investment projects, the new body will be obliged to ask for the opinions of leaders of related organizations when the finance minister recognizes the need for them.
The Finance Ministry and the National Security Secretariat are expected to be joint chairs of the committee, in which the trade and defense ministries are also seen participating.
The bill includes a rule requiring Japanese investors to submit their investment plans before investing in businesses in designated categories under instructions from foreign governments.
The coalition agreement inked last year by the Liberal Democratic Party and the Japan Innovation Party includes a plan to establish the Japanese version of CFIUS.
CFIUS can advise the U.S. president to block or suspend foreign investment projects in the United States. The acquisition of U.S. Steel by Nippon Steel was reviewed by the committee.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.