Despite 15 favorable to investment, these changes have made Japan an attractive market for investors.” Japan places a strong emphasis on long-term relationships, consensusdriven decision-making, and respect for hierarchy (Keita Tokura) Mr. Tokura indicates: “To succeed in Japan, foreign investors must carefully navigate the country’s unique cultural, commercial, and regulatory landscape. Foreign investors are increasingly drawn to Japan’s evolving business landscape, where innovation intersects with tradition. The country’s proactive measures to improve corporate transparency and governance signal a welcoming environment for global collaboration. From renewable energy breakthroughs to fintech advancements, Japan demonstrates its potential as a global leader in technological and economic transformation. These developments, coupled with a progressive shift in corporate culture and regulatory reforms, create fertile ground for foreign investors seeking both stability and growth. Japan places a strong emphasis on longterm relationships, consensus-driven decision-making, and respect for hierarchy. Practices such as nemawashi (informal consensus-building) play a crucial role in negotiations and decision-making processes. Building trust, demonstrating commitment, and understanding these cultural nuances are essential for establishing successful partnerships. Japan offers a stable and transparent market, characterized by high consumer spending power and a strong demand for quality. Localization is key to success, as Japanese consumers value products and services tailored to their preferences and needs. Companies that invest in understanding local tastes and delivering personalized experiences are better positioned to thrive in this competitive market.” What legal developments, regulatory shifts, policy reforms and global issues are impacting foreign investment into Japan? Mr. Tokura states: “In recent years, Japan has implemented significant legal and regulatory changes that have reshaped its foreign investment landscape. The multiple amendments to the Foreign Exchange and Foreign Trade Act (FEFTA) since 2019 introduced stricter screening processes for foreign investments in sectors deemed critical to national security. Global factors such as U.S. tariffs and geopolitical tensions are influencing Japan’s investment environment. The weakening yen has made Japanese assets more attractive to international investors, although it has simultaneously increased import costs for Japanese businesses. A key milestone in this evolving regulatory framework was the promulgation of the Economic Security Promotion Act in May 2022. This act designates certain products as “Specified Critical Products,” whose supply disruptions could significantly
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