Update: On 14 November 2019, we issued a client alert discussing a draft bill (the Bill) proposing changes to Japan's regulations on foreign investment. The draft Bill has since been presented to the Diet and has been passed by both the House of Representatives (the lower house) on 14 November 2019 and the House of Councilors (the upper house) on 22 November 2019. The Bill is expected to be promulgated in early December 2019, amending the Foreign Exchange and Foreign Trade Act (the Act).

As discussed in our previous alert, the next step will be drafting a Cabinet Order which will add further detail regarding the new provisions introduced by the Bill. The Cabinet Order is expected to be made available to the public for comment in early 2020 (February or March), and will come into force, along with the amended Act, no later than six months from the date on which the amended Act is promulgated (which will likely be sometime in the late spring of 2020). We will continue to monitor the situation closely, in particular the period of public consultation for the anticipated Cabinet Order.

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