Japan To Limit Foreign Ownership of Firms in Its IT, Telecom Sectors

Japan’s government said on Monday that high-tech industries will be added to a list of businesses for which foreign ownership of Japanese firms is restricted. From a report: The new rule, effective Aug. 1, comes amid heightening pressure from the United States in dealing with cyber-security risks and technological transfers involving China. The Japanese government made no mention of specific countries or companies that will be impacted by applying existing foreign ownership restrictions to the IT and telecoms industries.

The announcement came on the same day visiting U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe are holding talks in Tokyo on trade and other issues. The United States has warned countries against using Chinese technology, saying Huawei Technologies could be used by Beijing to spy on the West. China and Huawei have strongly rejected the allegations.