"Japanese Government Plans Mandatory Prior Notification for Companies Transferring Advanced Technology Overseas"

The Japanese government is continuously strengthening protective measures for its strategic sectors, including semiconductors.

NHK reported on the 30th that the government plans to introduce a system that mandates prior notification when private companies transfer advanced technologies overseas. Under the new system, if private companies in technology fields where Japan has strengths engage in joint research or build factories abroad, they must notify the Japanese government in advance. Until now, the Ministry of Economy, Trade and Industry (METI) has operated a permit system for technologies that could potentially be diverted to weapons development, but prior notification was not mandatory.

METI is stepping up its response to strategic technologies because the number of private technology fields that could be diverted to weapons development, such as semiconductors and aviation, is increasing. METI plans to consult with industry to select applicable technologies and begin revising enforcement ordinances and regulations as early as this summer. It is also considering applying penalties for false reporting and other violations.

Additionally, METI is considering adding four new items, including advanced materials and equipment that could potentially be used for military purposes, to the list of controlled exports. The main point is that Japanese companies will be required to report to the government before exporting related items. According to Nihon Keizai Shimbun, the Japanese government plans to collect public opinions on this matter by May 25 next month, revise the Foreign Exchange and Foreign Trade Act enforcement ordinance, and implement the changes within two months.