Restrictions on Foreign Investment in the Energy Sector for National Security Reasons: The Case of Japan in 2008

In 2008, Japan experienced an important cases on restrictions on foreign investment on national security reason, namely the J-Power Case. In this chapter, after considering international rules and Japanese law concerning restriction on foreign investment, the J-Power Case is analysed. The order by the government of Japan to discontinue inward investment was compatible with international law. Nowadays, detailed factors to be considered in screening of prior notification for inward direct investment are released, and they greatly serve to the principles of transparency and predictability in the restrictions on foreign investment.