Japan is considering lowering the 10 percent ownership threshold at which foreigners are required to report stakes in domestic companies, two officials said, as Tokyo looks to better monitor Chinese investment in areas related to security.
Such a move would follow similar steps taken by the United States and European countries in recent years and reflects growing unease in Japan about the possibility that Chinese state-backed companies could gain access to key technology.
"We need to strengthen monitoring for national security but we don't want to hinder foreign direct investment itself," said one of the officials, both of whom declined to be identified because the talks have not been made public.