Japan considers tighter ownership reporting rules | The Daily Star
12:00 AM, August 30, 2019 / LAST MODIFIED: 12:06 AM, August 30, 2019

Japan considers tighter ownership reporting rules

Japan is considering lowering the 10 percent ownership threshold at which foreigners are required to report a stake in domestic companies, two officials said, as Tokyo looks to better monitor potential Chinese investment in areas related to security.

Such a move would follow similar steps taken by the United States and European countries in recent years and reflects growing unease in Japan about the possibility that Chinese state-backed companies could gain access to key technology.

For all latest news, follow The Daily Star's Google News channel.

“We need to strengthen monitoring for national security but we don’t want to hinder foreign direct investment itself,” said one of the officials, both of whom declined to be identified because the talks have not been made public.

While Japan can’t explicitly target a single country under the reporting rules, the move would be aimed at strengthening monitoring of Chinese investment, the official said.

Under current rules, a foreign entity is required to report ownership in a Japanese firm once it plans to take at least a 10 percent stake. The change would see that threshold lowered, although the amount is still under discussion, the officials said.

“The United States and Germany have taken similar measures aimed at China. Japan is much further behind when it comes to protecting the security of its economy,” the second official said. 

 

Stay updated on the go with The Daily Star Android & iOS News App. Click here to download it for your device.

Grameenphone:
Type START <space> BR and send SMS it to 22222

Robi:
Type START <space> BR and send SMS it to 2222


Banglalink:
Type START <space> BR and send SMS it to 2225

Leave your comments

Top News

Top News

Top