Japan Govt OKs Bill to Set Up Own Version of CFIUS

Tokyo, March 17 (Jiji Press)–The government adopted a bill Tuesday to set up the Japanese version of the Committee on Foreign Investment in the United States, or CFIUS, to conduct cross-ministerial assessments of foreign investments in Japanese businesses. The government plans to submit the bill to revise the foreign exchange and foreign trade law to the current session of the Diet, the country’s parliament. The Japanese committee will be established to prevent information and technologies crucial to national security from being leaked outside Japan. During its screenings of investment projects, the new body will be obliged to ask for opinions of leaders of related organizations when the finance minister recognizes the need for them. The Finance Ministry and the National Security Secretariat are expected to be the joint chairs of the committee, in which the trade and defense ministries are also seen participating. The bill includes a rule requiring Japanese investors to submit their investment plans beforehand if they invest in businesses in designated categories under instructions from foreign governments. The coalition agreement inked last year by the Liberal Democratic Party and the Japan Innovation Party includes a plan to establish the Japanese version of CFIUS. CFIUS can advise the U.S. president to block or suspend foreign investment projects in the United States. The acquisition of United States Steel Corp. by Nippon Steel Corp. was reviewed by the committee. END [Copyright The Jiji Press, Ltd.]