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Economy

Japan tightens entry of foreign investors in 12 strategic sectors

Space, rail and utilities among 400-plus companies covered by 1% prescreening rule

The space, railway and power industries are among the 12 sectors that will have stricter screening thresholds for foreign investors.    © Kyodo

TOKYO -- Foreign investors purchasing a 1% or more stake in a Japanese company will be subject to prescreening if the target company is included in 12 specified sectors deemed critical to national security, such as arms, aircraft and space-related industries, Nikkei has learned.

Those new rules are expected to amount to 400 to 500 of Japan's 3,800 listed companies. 

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