Japan will pass CFIUS-equivalent foreign investment screening legislation within 90 days
Japan's cabinet adopted a CFIUS-style bill on March 17, 2026, to screen foreign investment for national security technology leaks. With the LDP-led governing coalition holding a Diet majority and the bill framed as a security imperative amid the Iran crisis and intensifying US-China tech competition, passage within 90 days is likely. Combined with existing semiconductor export controls aligned with the US and Netherlands, this would functionally close Japanese deep-tech sectors to Chinese investment.
The Strait of Hormuz crisis dominates today's outlook: allied refusal to join a US-led escort coalition leaves maritime security fragmented, sustaining trade disruption and oil price pressure, while Japan accelerates tech-decoupling legislation and Russia advances wartime coercive tools.