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Economy

Japan eyes screening technology investments as small as 1%

With China in mind, Tokyo seeks to increase oversight of foreign capital in critical areas

The Japanese government is considering tightening restrictions on foreign investment in strategic industries such as semiconductor manufacturing to prevent technology from falling into the wrong hands.

TOKYO -- The Japanese government is considering tighter restrictions on foreign investment in industries it sees as key to national security, such as nuclear power and chipmaking.

At present, overseas investors must seek approval from regulators when seeking to buy stakes of 10% or more in Japanese companies that operate in strategic sectors. The proposed change would lower the screening requirement to purchases of stakes of 1% or more.

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