Industrial Policy & Trade Monitor· 2668 actions· ✨ 89 recent

Japan's Ministry of Finance and METI imposed a provisional anti-dumping duty of 3.6% to 42.1% (varying by exporter) on nickel-added cold-rolled stainless steel coil, sheet and strip (alloy steel with >=10.5% chromium and >0.6% nickel by weight) originating in or exported from China and Taiwan. The Cabinet Order was made public 8 July 2026 and the provisional duty applies 9 July 2026 to 8 November 2026, pending the investigation MOF/METI opened 22 July 2025.

Japan's Diet passed the Foreign Exchange and Foreign Trade Act (FEFTA) 2026 Amendment on 29 May 2026; the law was promulgated on 5 June 2026. The amendment represents the most significant overhaul of Japan's inbound FDI screening regime since FEFTA was first applied to national-security transactions in 2019. Three structural additions: (1) indirect-acquisition screening — extends mandatory prior-notification to acquisitions of Japanese sensitive-sector companies effected through intermediate holding structures or offshore parent vehicles, closing the principal gap exploited by Chinese and GCC SWF investors via SPV chains; (2) call-in powers — grants the Minister of Finance authority to open a review up to ten years retroactively where an acquisition was not pre-notified or where circumstances have materially changed since clearance, directly analogous to CFIUS § 721(b)(1)(D) retroactive jurisdiction; (3) cross-ministerial "Japan CFIUS" consultation framework — formally institutionalises a standing inter-agency committee (Finance, METI, MoD, NPA, MIAC) modelled on the US CFIUS committee, replacing the prior ad-hoc inter-ministerial process. Cross-ministerial and indirect-acquisition provisions entered into force immediately on promulgation (5 June 2026); remaining Cabinet-Order-level implementing provisions to follow within one year.

On 15 April 2026 Japan's Ministry of Economy, Trade and Industry (METI) published the interim summary "Manufacturing Base Strengthening Report" from the Study Group on Strengthening Manufacturing Base in Light of Geopolitical Risks. The report frames Japan's manufacturing base as the source of national power and proposes shifting economic-security support for "autonomy assurance" from "point" measures to "area"-wide measures — expanding the scope of Specified Critical Materials under the 2022 Economic Security Promotion Act (ESPA) beyond narrowly defined inputs to cover foundational petrochemicals (ethylene, propylene, methanol, synthetic rubber) and process-industry technologies (casting, forging), plus components for emerging technologies (humanoid-robot actuators and sensors, lasers for quantum computing). It is the cornerstone framework document operationalising METI's FY2026 strategic-budget package (~¥3.07 trillion overall envelope; ~¥1.23 trillion specifically for semiconductors and AI, including ¥150bn for Rapidus and ¥387.3bn for AI development) as Japan's coordinated response to deepening Chinese export-control pressure on dual-use items, gallium/germanium, graphite, antimony and heavy rare earths.

NEDO, under METI's Green Innovation Fund, launched the "Next-Generation Tandem Solar Cell Mass Production Technology Demonstration Project," a JPY 153.3 billion (maximum; JPY 123.2 billion committed for the initial three-year phase) programme running fiscal 2025-2030. Two companies — Kaneka Corporation and Aisin Corp — were selected, each holding mass-production plans exceeding 500MW by fiscal 2030 for perovskite-silicon tandem solar cells. The programme targets conversion efficiency above 30% and a residential generation cost below JPY 12/kWh, aimed at establishing high-yield, high-throughput manufacturing processes ahead of anticipated global scale-up.

Japan Bank for International Cooperation (JBIC), Japan's state export-credit and outbound-investment finance institution, signed a loan agreement on 2026-02-04 providing up to USD 18 million to Hitachi Energy Turkey Elektrik Sanayi A.Ş., the Turkish subsidiary of Hitachi Energy Ltd. MUFG Bank Turkey A.Ş. co-financed a further USD 12 million, bringing the total facility to USD 30 million. The loan funds relocation and expansion of Hitachi Energy's transformer manufacturing plant in Türkiye, intended to raise transformer production capacity amid rising global grid-equipment demand. JBIC cited support for "the international competitiveness of the Japanese power infrastructure industry" and alignment with the Japanese government's policy of promoting global power-network development.

On 26 December 2025, Japan's Cabinet approved the FY2026 (Reiwa 8) national budget, which the Global Trade Alert database logs as including a "Multi-modal Foundation Model Development Project with a Focus on AI Robots and Physical AI" financial-grant line administered by METI, effective with the fiscal year on 1 April 2026. NEDO -- METI's implementing R&D agency -- operationalised this line through a commissioned-project (100%-funded) solicitation opened 24 March 2026 and closed 22 April 2026, capping funding at up to JPY 383.4 billion (~USD 2.5bn) per adopted proposal for FY2026, with the programme running FY2026 through FY2030 (initial contract period FY2026-FY2027, annual stage-gate reviews thereafter). The goal is a domestically developed multimodal ("VLM/VLA") foundation model that keeps Japanese factory-floor and robotics data onshore while underpinning "physical AI" -- AI systems embedded in robots and industrial equipment -- to address labour shortages and lift manufacturing productivity. NEDO's call for proposals subsequently selected Noetra Inc. and the National Institute of Advanced Industrial Science and Technology (AIST/産総研) as awardees.

On 26 December 2025, Japan's Cabinet approved the FY2026 (Reiwa 8) national budget, which the Global Trade Alert database logs as including a "Project to Promote the Strengthening of Autonomous Resource Circulation Systems" financial-grant line administered by METI, effective with the fiscal year on 1 April 2026. The line is the continuation of METI's "Decarbonisation Growth-Type Economic Structure Transition Promotion Subsidy (Autonomous Resource Circulation System Strengthening Promotion Project)" (脱炭素成長型経済 構造移行推進対策費補助金（自律型資源循環システム強靱化促進事業）), which funds private-sector investment in recycled-material manufacturing and recovery equipment for rare metals/rare earths, automotive and small-electronics lithium-ion batteries, plastics, and textiles. Japanese budget-press reporting puts the FY2026 allocation at JPY 7.3 billion (73億円), up from JPY 3.0 billion (30億円) in FY2025 -- roughly a 2.4x year-on-year increase. METI opened the call for the executing body (執行団体) on 18 February 2026, with the General Incorporated Association for Low-Carbon Investment Promotion (GIO) again acting as the designated administrator, as it did for the FY2025 round.

Japan Bank for International Cooperation (JBIC), Japan's state export-credit and outbound-investment finance institution, signed a loan agreement announced 2025-12-18/19 providing USD 98 million toward roughly USD 163 million in total co-financing (with Mizuho Bank) for NSC (Australia) Pty Ltd (NSCA), the Australian subsidiary of Nippon Sanso Holdings Corporation (TSE: 4091). The facility finances part of NSCA's July 2025 acquisition of the Coregas Group (Coregas Pty Ltd and Blacksmith Jacks Pty Ltd in Australia, Coregas NZ Limited in New Zealand), an industrial-gas producer with one of the Southern Hemisphere's largest production facilities and an active hydrogen-production development program. JBIC explicitly framed the loan as supporting "Japan's economic security" by strengthening the resilience of industrial-gas supply chains used across manufacturing, medical, and beverage industries.

Japan's Cabinet adopted a Cabinet Order on 11 November 2025 (promulgated 14 November 2025, effective 14 February 2026) amending Appended Table 1 of the Export Trade Control Order (輸出貿易管理令) to add three new list-control item categories: (i) peptide synthesizers and related components (Item group mapping to Australia Group 2023–2024 plenary dual-use biotechnology controls, aligning Japan with the US BIS implementation promulgated December 2024), (ii) powders of refractory metals or their alloys below specified particle-size and purity thresholds — tungsten, molybdenum, niobium, tantalum, and rhenium powders used as additive- manufacturing feedstocks (Item 5(20), implementing a Wassenaar Arrangement plenary outcome on metal-powder dual-use), and (iii) modules, assemblies, or devices incorporating field-programmable logic devices (FPGAs) above specified gate-count and process-node thresholds (Item 7(10-2), extending Japan's semiconductor-component AI-compute perimeter). This is the first discrete Appended Table 1 list-control amendment filed under the post-October-2025 FEFTA catch-all- controls overhaul architecture.

Japan Bank for International Cooperation (JBIC), Japan's state export-credit and outbound-investment finance institution, signed a loan agreement on 2025-06-30 (announced 2025-10-06) providing USD 20.712 million toward a total co-financed package of USD 34.52 million (with Saitama Resona Bank, Limited) for F&P America Mfg., Inc. (FPA), the U.S. subsidiary of F-TECH INC. (Japan). The facility finances FPA's manufacturing and sale of suspension parts for battery electric vehicles (BEVs) at its plant in Ohio, following a major BEV suspension-component order. JBIC framed the loan as supporting the international competitiveness of Japanese industry and reinforcing the resilience of the Japanese automotive supply chain.

Japan Bank for International Cooperation (JBIC), Japan's state export-credit and outbound-investment finance institution, signed a loan agreement on 2025-07-25 (announced 2025-09-24) providing GBP 54 million toward a total co-financed package of GBP 90 million (with a private financial institution) for Sumitomo Electric U.K. Power Cables Ltd. (SEUK-CL), the UK subsidiary of Sumitomo Electric Industries, Ltd. (Japan). The facility finances SEUK-CL's manufacturing and sale of submarine transmission cables in Scotland. JBIC framed the loan around the UK's offshore-wind buildout (Scotland targets up to 11 GW of offshore wind capacity by 2030) and the UK's position as Europe's largest submarine-cable market, alongside Sumitomo Electric's own Mid-Term Management Plan priority of expanding high-voltage direct-current cable capacity in Europe.

NEDO, Japan's national R&D funding agency, newly adopted three companies under the "Next-Generation Solar Cell Demonstration Project" of the Green Innovation Fund, allocating JPY 37.8 billion in support across fiscal 2024-2030 (7 years). The selected companies each hold commercialisation plans at 200-300MW scale by 2030, targeting mass-production technology and field demonstrations of perovskite solar cells (rooftop and building-facade installations, domestic and international). The programme's broader goals are 20GW of perovskite deployment by 2040 and a generation cost of JPY 14/kWh, aimed at strengthening Japan's competitiveness in solar manufacturing.

METI certified a Supply Security Plan (供給確保計画) filed by Nitto Boseki Co., Ltd. under Japan's Economic Security Promotion Act, designating low-thermal-expansion glass cloth for cutting-edge logic IC packaging substrates as a "specified critical good" material input. The certification (plan no. 2025-semicon-3-1, approved 7 August 2025) qualifies Nitto Boseki for a grant of up to JPY 2.4 billion (~USD 16 million) toward a JPY 7.2 billion new production line at its Fukushima No. 2 plant, targeting a roughly 200% increase in domestic capacity for this glass-cloth grade with supply starting July 2027 and a committed 10-year production run.

METI certified a Supply Security Plan (供給確保計画) filed by DIC Corporation under Japan's Economic Security Promotion Act, designating epoxy resin used in semiconductor packaging/encapsulation as a "specified critical good" material input. The certification (plan no. 2025-semicon-2-1, approved 31 July 2025) qualifies DIC for a grant of up to JPY 3 billion (~USD 20.1 million) toward a new epoxy-resin plant at its Chiba (Ichihara) factory, targeting roughly a 59% increase in domestic production capacity for semiconductor-grade epoxy resin, with supply starting July 2029.

METI certified a Supply Security Plan (供給確保計画) filed by JX Metals (JX Nippon Mining & Metals Corporation, now JX Advanced Metals) under Japan's Economic Security Promotion Act, designating copper-based sputtering targets used in semiconductor wiring as a "specified critical good." The certification (plan no. 2025-semicon-1-1, approved 18 July 2025) is the first in the 2025 semiconductor tranche and qualifies JX Metals for a grant of up to JPY 2.2 billion (~USD 14.8 million) toward roughly JPY 6.6 billion of capex expanding sputtering-target production capacity at its Hitachinaka (Ibaraki Prefecture) plant.

Japan Bank for International Cooperation (JBIC) signed a loan agreement on 2025-07-11 for approximately USD 46 million with MGC Pure Chemicals America, Inc. (MPCA), the US subsidiary of Mitsubishi Gas Chemical Company. Co-financed alongside Bank of Yokohama, Hachijuni Bank, and Joyo Bank, the total co-financing package reaches USD 77 million. Proceeds fund expansion of MPCA's Arizona production capacity for ultra-pure hydrogen peroxide and ultra-pure ammonium hydroxide — semiconductor-grade chemicals used for silicon-wafer cleaning and etching — as JBIC states, to strengthen Japanese supply-chain resilience and support US semiconductor manufacturing demand. This is MPCA's second JBIC-backed expansion loan, following a USD 36 million (JBIC portion) facility signed in April 2024 for the same production line.

Japan Bank for International Cooperation (JBIC) signed a loan agreement on 2025-06-30 for USD 180 million (JBIC portion) with Toray Composite Materials America, Inc. (CMA), the US subsidiary of Toray Industries, Inc. Co-financed with Mizuho Bank and seven other Japanese financial institutions, the total co-financing package reaches USD 300 million. Proceeds fund CMA's manufacturing and sale of carbon fiber for high-pressure gas tanks used in hydrogen-powered fuel cell vehicles (FCVs), which JBIC states supports maintaining and improving the international competitiveness of Japan's carbon fiber industry and strengthening supply-chain resilience.

Japan Bank for International Cooperation (JBIC) signed a loan agreement on 2025-06-26 for up to USD 240 million with UBE C1 Chemicals America, Inc. (UCCA), a US subsidiary of UBE Corporation. Co-financed alongside MUFG Bank, Mizuho Bank, and The Norinchukin Bank, the total co-financing package reaches USD 400 million. Proceeds fund a new UCCA manufacturing facility for dimethyl carbonate (DMC) and ethyl methyl carbonate (EMC) — organic solvents used in automotive lithium-ion batteries — which JBIC and Louisiana economic-development officials describe as the first domestic US production source for these chemicals, which are currently entirely imported.

METI committed up to 732 billion yen (~US$4.86 billion) in direct subsidies for Japan Advanced Semiconductor Manufacturing K.K. (JASM) to build a second wafer fab adjacent to the first JASM facility in Kikuyo, Kumamoto Prefecture. Confirmed by METI Minister Ken Saito at the Fab 1 opening ceremony on 24 February 2024, two weeks after TSMC, Sony Semiconductor Solutions, Denso, and Toyota jointly announced the Fab 2 expansion (6 February 2024). Fab 2 will produce 6/7nm and 40nm logic for automotive, industrial, consumer, and HPC end-markets, with combined Fab 1 + Fab 2 capacity exceeding 100,000 12-inch wafers per month. Construction targets year-end 2024; operations target year-end 2027. Combined with the 476 billion yen Fab 1 grant, total JASM subsidies reach ~1.208 trillion yen, the largest single direct manufacturing subsidy in Japanese history. METI conditions require >=10 years of post-startup production and >=50% Japanese-domestic procurement of silicon wafers, materials, and components.

The Act on Promotion of a Smooth Transition to a Decarbonized Growth-Oriented Economic Structure (Law No. 46 of 2023), passed by the Diet on 12 May 2023 and promulgated 19 May 2023, establishes Japan's Green Transformation (GX) financing and carbon pricing framework. The government will issue 20 trillion yen in GX Economy Transition Bonds (the world's first sovereign transition bonds) to catalyze 150 trillion yen of public-private decarbonization investment over ten years (2023-2032). Bonds are repaid through a two-pillar carbon pricing system: a GX Emissions Trading Scheme (GX-ETS) launching voluntarily in FY2023, becoming mandatory for emitters >100,000 tCO2/year from FY2026; and a GX-surcharge on fossil fuel importers phased in from FY2028.

Japan's Ministry of Economy, Trade and Industry (METI) announced on 31 March 2023 amendments to the Foreign Exchange and Foreign Trade Act adding 23 categories of advanced semiconductor manufacturing equipment to the export-licensing list. The measure, effective from 23 July 2023, is the Japanese counterpart to the US October 2022 BIS rule (filed: 2022-10-07-us-bis-advanced-ai-chip-controls-china) and the Dutch DUV controls. Items covered span lithography (mostly ArF and KrF), deposition (CVD, ALD, sputtering), etch, and cleaning + advanced inspection — broadly the toolset used at ≤14/16nm logic, advanced DRAM, and advanced 3D NAND. The controls are formally non-discriminatory but in practice capture exports to China; non-China destinations get general licences.

The Act on the Promotion of Ensuring National Security through Integrated Implementation of Economic Measures (Law No. 43 of 2022), enacted 18 May 2022, establishes a four-pillar framework: (1) supply-chain resilience for "specified critical products," (2) security of critical infrastructure, (3) state-backed development of "specified critical technologies," and (4) non-disclosure of nationally sensitive patents. A December 2022 Cabinet Order designated 11 product categories as specified critical products, including semiconductors, storage batteries, permanent magnets, cloud programs, LNG, critical minerals, machine tools, and aircraft parts. Competent ministries must publish stable-supply plans, can fund private-sector surveys, and may provide subsidies to qualifying firms.

METI committed 476 billion yen (~$3.3bn) in direct subsidies covering approximately half the construction cost of Japan Advanced Semiconductor Manufacturing K.K. (JASM), a purpose-built joint venture fab at Kikuyo Town, Kumamoto Prefecture. JASM shareholders are TSMC (86.5%), Sony Semiconductor Solutions (6%), Denso (6%), and Toyota Motor (1.5 %). The fab manufactures 12nm, 16nm, 22nm, and 28nm mature-node chips targeting automotive-grade, industrial, and IoT applications. A groundbreaking ceremony was held on 13 April 2022; the facility officially opened on 24 February 2024 and reached commercial production in December 2024. JASM represents Japan's first new leading-edge wafer fab in decades and the largest single foreign direct investment in Japanese manufacturing history.

On 5 October 2021, Japan's Ministry of Economy, Trade and Industry, jointly with the Ministry of Finance, MEXT and MLIT, published amendments to the Regulatory Notices under the Foreign Exchange and Foreign Trade Act (FEFTA) adding two new categories to the "Core Business Sectors" subject to mandatory prior-notification FDI screening: metal mining (including mineral exploration vessels and land/underwater survey activity) and manufacturing, repair/maintenance or software for equipment used in metal mining (exploration vessels, marine equipment, excavators, drilling machines). The stated purpose is to secure the stable supply of critical mineral resources including rare earths. The amendment took effect 4 November 2021 after a 30-day transitional period; any inward direct investment of 1% or more in a covered business now requires case-by-case government pre-approval.