Ownership Regulations: Japan and Chinese Academy

ownership regulations: Analysts say the act is a show of protectionism and will repel global investors from Japan and reduce foreign direct investment FDI in the country, according to Global Times China. Japan's revision of its foreign trade act follows US and European policies on direct investment, and in particular prevents other countries from catching up to its technologies in key industries, Zhou Xuezhi, a research fellow at the Institute of World Economics and Politics under the Chinese Academy of Social Sciences, told the Global Times on Thursday. Xinhua/Du Xiaoyi Japan in October approved a bill to tighten foreign ownership regulations in industries related to national security, which is expected to take effect in the spring, media reported. China is opening up, while the US and Japan are closing their doors, said Zhou, comparing Japan's Foreign Exchange and Foreign Trade Act with China's Foreign Investment Law, which was approved in March this year. Foreign investors will have to undergo a government review before obtaining one percent stake or higher in a listed Japanese firm, a sharp drop from the current 10 percent threshold. The Japanese Cabinet approved the Amendment Bill of the Foreign Exchange and Foreign Trade Act on October 18, 2019, which will require prior notification and screening for investment in some business sectors concerned with national security, according to the Ministry of Finance of Japan's website on October 21. (news.financializer.com). As reported in the news.