Japan Plans CFIUS-Style Body to Tighten Foreign Investment Screening

Japan plans to establish by year-end a cross-ministerial body modelled on the US foreign investment watchdog CFIUS, strengthening Japan foreign investment screening to address national security risks linked to inbound capital, the government said.

A bill to revise the foreign exchange law will be submitted when parliament’s ordinary session opens on Jan. 23, enabling the framework’s creation, officials said.

The finance ministry will seek to double staff involved in Japan foreign investment screening to about 120, following a panel report urging stronger coordination among security-related agencies.

The plan, backed by the ruling Liberal Democratic Party and the Japan Innovation Party, would bring together the finance and trade ministries and the National Security Secretariat, creating a centralised mechanism similar to CFIUS.