Japanese leather industry gains protected status
Overseas investors face tougher legislation when considering Japanese tanneries.
The government of Japan has introduced a new law intended to tighten regulations on overseas investment within a number of Japanese companies. Under the new regulation, investors from outside Japan will require governmental permission before they can obtain a stake of 1 per cent or more in certain Japanese companies – a significant drop from the current 10 per cent limit.
The issue of national security has been cited as the reason for the stricter regulation. According to business analysts, the government of Japan is also concerned about possible leaks of intellectual property and sensitive information to foreign corporations or governments.
While it is no surprise that arms manufacturers, transport companies, utility providers, broadcasters and telecommunications organisations are included among the core businesses on the government’s list, leather production is also included.
This article was originally published on page 4 of the January 2020 issue of SATRA Bulletin.