Ahead of Suga-Biden summit, Japan briefs US on Tencent-Rakuten ties

Talks seek to reassure Washington over China link to telecom network

20210414N Rakuten 5G

A Rakuten virtual reality demonstration: The Japan's e-commerce group is the country's newest 5G network player. (Photo by Shihoko Nakaoka)

SHUNSUKE SHIGETA, KOSUKE TAKEUCHI and MASAAKI KUDO, Nikkei staff writers

TOKYO -- Japanese wireless network operator Rakuten will be monitored for national security implications of an investment from Chinese tech group Tencent Holdings, government officials told American counterparts ahead of this week's bilateral summit, according to people familiar with the matter.

Anticipating the American side may raise questions about the Chinese investment in Rakuten -- Japan's newest 5G network player --- senior aides to Prime Minister Yoshihide Suga met to discuss the matter ahead of his trip to the U.S. on Thursday to meet with President Joe Biden, these people said.

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