Tencent-Rakuten deal exposes limits of Japan investment rules

Chinese tech group's stake was not subject to national security prescreening

20210419N Tencent fence REUTERS

Tencent Holdings is facing scrutiny from Japanese authorities after purchasing a $600 million stake in Rakuten last month. © Reuters

MARIKO KODAKI, Nikkei staff writer

TOKYO -- Chinese tech group Tencent Holdings' investment in wireless carrier Rakuten has revealed what some see as the limits of new Japanese investment rules meant to ensure such deals are vetted on national security grounds.

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