The move is a counter to pressure from the US to stop Chinese businesses buying lots of tech companies. The move came on the same day visiting US President Donald Trump and Japanese Prime Minister Shinzo Abe are holding talks in Tokyo on trade and other issues.

The Japanese government said that the move was all down to ensuring cyber security. It was decided to take the necessary steps to include integrated circuit manufacturing on the list to prevent a situation that will severely affect Japan’s national security.

Japan wants to prevent a leakage of technology deemed important for national security or damage to defence output and technological foundation, they added.

The new rule will be applied to 20 sectors in information and communications industries, according to the joint statement by the finance ministry, trade ministry and communications ministry.

Under the foreign exchange and foreign trade control law, Japan brings certain industries such as airplanes, nuclear-related sectors, and arms manufacturing under foreign capital controls.

The law requires foreign investors to report to the Japanese government and undergo inspection in case they buy 10 percent or more of stocks in listed Japanese companies or acquire shares of unlisted firms. If the government finds any shortcomings, it can order foreign investors to change or cancel their investment plans.