• New Coronavirus: Impact and Response
• Regulation of Foreign Investment under the Revised Foreign Exchange and Foreign Trade Act

New Coronavirus: Impact and Response

Recent volatility in stock markets has reminded us of their sensitivity to events like the spread of new coronavirus infections. Worldwide, markets have fallen to an unanticipated extent, but all we can do is remain calm and monitor the situation.

There are concerns that growing contagion could negatively affect corporate earnings, but it is unlikely to have significant direct impact on this year's spring labor-management wage negotiations. The key challenge in these negotiations is creating working conditions that will boost employee motivation.

Effects of the contagion are beginning to emerge, including the bankruptcy of a hotel and postponement of J-League soccer matches. Concerns have also been voiced over the effects on students' job-hunting activities and entrance exams. The public and private sectors need to join forces to conquer the new coronavirus, and the next week or two will be crucial in achieving a swift return to normality. The government's basic stance is to take every possible countermeasure. Based on government guidelines, Keidanren will continue recommending that its member companies introduce measures such as telecommuting and flexible start times. Keidanren will make general judgements on matters other than decision-making meetings.

Regulation of Foreign Investment under the Revised Foreign Exchange and Foreign Trade Act

Ministry of Finance is currently taking the lead in preparing governmental and ministerial ordinance and drafting notifications. It is important to balance business and national security, but this is quite a difficult task. Decisions are not simple even if a technology is vital to economic development, since it may have military implications depending on how it is used. Japan can only build a track record of practical decisions while continuing to move in step with the US. Business leaders need to respond with a sound understanding of the issues, including the background.