How will Japan respond to new U.S. investment rules?
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In recent years, as countries increasingly focus on their economic security, much of the discussion on bolstering investment regulations has been centered on inbound investment.
Japan’s rules in this area have largely been influenced by developments in the United States — namely, new regulations to strengthen the Committee on Foreign Investment in the United States (CFIUS).
In addition, U.S. President Joe Biden signed an executive order last August to establish new outbound investment regulations under the so-called “small yard, high fence” concept. This means that strict regulatory measures will only be taken in sectors that could potentially threaten national security.
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