Defence Finance Monitor

Defence Finance Monitor

Japan to Tighten Foreign Investment Rules as Tokyo Strengthens Economic Security Framework

Nov 06, 2025
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Sanae Takaichi elected Japan's first female prime minister - as it happened  | Reuters

Japan is preparing a far-reaching reform of its foreign investment screening system, reflecting the government’s growing focus on economic security and control over strategic technologies. The revision of the Foreign Exchange and Foreign Trade Act (FEFTA), expected to be submitted to parliament in 2026, will introduce a more selective and risk-based app…

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