Japan investors in U.S. tech face tougher scrutiny over China ties

Country leads CFIUS filings for critical technology acquisitions in 2022

20230831N White House sign

Washington has stepped up its screenings of foreign direct investments in U.S. sectors deemed significant to national security. © Reuters

NISHANT ANNU, Nikkei staff writer

WASHINGTON -- Japanese companies making investments in U.S. critical technology businesses face increasing scrutiny over ties to China, legal experts say, as Washington seeks to keep supply chains secure.

The Committee on Foreign Investment in the United States (CFIUS), which reviews certain transactions for national security risks, is requesting more detailed long-form notices from foreign investors filing short-form declarations, and taking longer to investigate the notices it receives.

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