Japan to restrict foreign investment for domestic tech and telco companies

The Japanese government announced on Monday that it will tighten the rules for foreign investors that are looking to buy into domestic tech companies.

The new rules, set to be effective August 1, add 20 industries onto an approval list where foreign investors will be required to gain approval from the Japanese government if they are to purchase a Japanese company operating within those industries.

Foreign investors will have to report to the Japanese government about any investment that they wish to make if it comprises 10% or more of a Japanese company within the affected industries. Any of these foreign investments could be blocked if it is deemed a “national security threat”.

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