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How will Japan react to new US investment rules?

As countries increasingly focus on their economic security in recent years, much of the discussion about strengthening investment regulations has focused on inward investment.

Japan’s rules in this area have been largely influenced by developments in the United States – namely new regulations strengthening the Committee on Foreign Investment in the United States (CFIUS).

In addition, US President Joe Biden signed an executive order last August to establish new regulations for outbound investments under the so-called “small garden, 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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