Amendments to the Foreign Exchange and Foreign Trade Act (“FEFTA”) intended to facilitate beneficial inbound investment while strengthening Japan’s ability to address investments that may raise national security concerns were promulgated on 5 June 2026. On 16 September 2026, Japan’s Ministry of Finance (“MOF”) published the results of public consultations on changes to foreign direct investment (“FDI”)-related regulations to implement the June 2026 FEFTA amendments. Revised regulations subject to public comment included the relevant cabinet…

Japan is considering to incorporate a Japan-style “CFIUS-like” framework into the foreign direct investment (FDI) regulations. On 17 March 2026, the new bill for FDI regulations under the Foreign Exchange and Foreign Trade Act (FEFTA) was submitted to the House of Representatives. This new bill is based on the report “On the Appropriate Framework for the Inward Direct Investment Screening System, etc.” announced by the Council on Customs, Tariffs, Foreign Exchange and Other Transactions on…

On August 18, 2021, the relevant ministries announced their plan to add new sectors relating to rare earth metals to the “designated sectors” and the “core sectors” within the Japanese foreign investment regulations, which are subject to prior notification and screening. The new sectors include metal mining businesses, metal mining equipment manufacture/repair/software businesses and port construction business in designated islands which are relevant to rare earth metals. This latest addition to the “designated sectors” and…