Japanese gov’t to place telecom and IT sectors under foreign ownership restrictions

29 May 2019

Telecom Lead reports that this week (27 May) the government of Japan announced its intention to place foreign ownership restrictions on its IT and telecoms sectors, issuing the new rules amid increased pressure from the US to deal with the potential threat of cyber-security and technological transfers involving China. Having already updated its procurement regulations last year to bolster its ability vis-a-vis security and place an effective ban on purchases of equipment from Chinese telecoms equipment makers Huawei Technologies and ZTE, Japan has also extended the measures to 5G spectrum licensing rules for private companies, meaning Japan’s telecoms operators are increasingly unlikely to use network equipment from the two Chinese vendors.