Foreign Direct Investment

Japan’s 2026 FEFTA amendment strengthens foreign investment screening by covering certain indirect acquisitions, formalising risk-mitigation measures and expanding the authorities’ powers in relation to high-risk investments.

Japan’s inbound foreign investment screening under FEFTA may see its most significant update since 2020. On 7 January 2025, the MOF Council released recommendations pointing to a more risk-based, streamlined review—reducing low-risk filings (including certain software/ICT deals and routine officer reappointments) while strengthening mitigation tools, indirect acquisition oversight, and post-closing powers.