Citing security, Japan to plug loophole in reporting rules for foreign investment

Makiko Yamazaki - Reuters - 23/01
Japan's finance ministry plans to plug a loophole in reporting requirements for foreign investors under the Foreign Exchange and Foreign Trade Act, in an effort to prevent intelligence from leaking to foreign governments.
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TOKYO, Jan 23 (Reuters) - Japan's finance ministry plans to plug a loophole in reporting requirements for foreign investors under the Foreign Exchange and Foreign Trade Act, in an effort to prevent intelligence from leaking to foreign governments.
The step comes as countries look to strengthen control over their economic supply chains after global shocks, including trade tensions between the United States and China.
The planned change, proposed at a finance ministry panel on Thursday, will mandate prior notifications from all foreign investors that might cooperate with foreign governments in collecting intelligence. The requirement kicks in when such a company attempts to acquire 1% or more of firms deemed key to Japan's national security.
Even though the panel did not name an...
[Short citation of 8% of the original article]