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Japan ranks second only to the United States of America in terms of foreign direct investment into Australia. Data from the Australian Bureau of Statistics showed that Japanese investment amounted to a cumulative A$91 billion in May 2017—double the level of investment in 2009.
The importance of Japanese investment remains unchanged from the time of the signing of the 1957 Commerce Agreement, but its nature has continued to evolve. From the 1960s to the mid-2000s, Japanese investment was primarily focussed on securing minerals, energy and food for export to Japan. This was achieved through minority interests in joint ventures.
The last 10 years has seen a distinct ‘second trend’ of direct investment in the Australian domestic market. These recent acquisitions have targeted revenue and profit growth in overseas markets as Japanese investors seek a natural hedge to Japan’s demographic challenges of an ageing and declining population.
The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2025
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