Japan needs to review foreign investment restrictions and reduce corporate tax rates to attract more foreign direct investment and takeovers, a government advisory panel proposed Monday.
If it fails to do so, there could be a mass departure of foreign direct investment, which is a vital tool to stimulate economic growth, warned the panel of academics and experts.
The proposal calls on the government to review the rules on antitakeover measures by this summer, as well as to clarify regulations restricting foreign investment on the grounds of national security by the end of fiscal 2008.