Japan Sharing 'Notes' With US, G-7 Countries on Outbound Investment Risks, Official Says

Japan plans to “compare notes” with the U.S. and other Group of 7 countries on risks posed by outbound investments, said Keiichi Ono, Japan’s senior deputy minister for foreign affairs. But Ono stopped short of saying Japan will implement new outbound screening measures, saying the country is still studying the restrictions.

“This is a new area,” Ono said during a July 7 event hosted by the Center for Strategic and International Studies. Although there is a “shared recognition” among the Group of 7 nations that export controls, inbound investment restrictions and potential outbound investment restrictions “could be important,” he said the “specific measures that will be taken depends on each country’s decision process from now on.”

G-7 countries in May agreed to explore new restrictions on outbound investments into China and a broader strategy to de-risk from certain aspects of the country’s economy (see 2305220017). Ono, asked about China’s recent export restrictions on gallium and germanium, two metals used to produce semiconductors (see 2307060053), stressed the importance of maintaining open communication between the two countries.

“We will continue to make efforts in having such dialogues with China, although we need to address the issues of concern there,” he said. “We’ve tried to have candid dialogue with China” on “economic” security issues, Ono added, calling that “key.”