The government approved a bill Friday that sets the rules for Japanese companies that want to file civil lawsuits against foreign governments.
The bill was drafted in response to increasing cross-border disputes involving Japanese firms as business activity becomes more globalized.
According to the bill, civil lawsuits can be filed in Japanese courts not only against foreign governments, but also entities that could be treated in a similar manner, including provincial governments and central banks. The bill limits the scope of civil suits that can be lodged in Japan to nine areas, including business transactions and employment contracts.