New partnership paves way for increased UK investment into Japan,
supporting Prime Minister Ishiba's ambitious foreign investment
targets.
UK-Japan Investment MoC July
2025
The UK and Japan yesterday signed a Memorandum of Cooperation
(MoC) aimed at enabling increased UK investment into Japan,
further strengthening the economic ties between the two nations.
The agreement was signed at the British Embassy in Tokyo by
Baroness of Chesterton CBE, UK
Minister for Investment, and Mr. Seto Takakazu, State Minister of
the Cabinet Office of Japan, who played an important role in
compiling the ‘Program for Promotion of Foreign Direct Investment
in Japan 2025' last month.
This strategic partnership establishes a formal framework for
collaboration to accelerate UK investment into Japan, supporting
Prime Minister Ishiba's ambitious target of more than doubling
Japan's foreign direct investment stocks to JPY120 trillion
(approximately £600 billion) in 2030.
Minister for Investment Baroness CBE said:
The UK and Japan share a deep and enduring partnership that is
committed to mutual prosperity and growth. That's why I'm
delighted to sign this new partnership with Japan – capitalising
on the major opportunities for UK businesses to bring their
innovative offers to Japan and grow in the Japanese economy.
Key growth sectors with strong potential for increased UK
investment include clean energy, digital transformation,
biotechnology and healthcare, alongside enabling sectors such as
legal, professional and financial services.
This aligns with the UK's new Industrial Strategy, which sets out
plans to transform the UK's clean energy, digital and
technologies, and life sciences sectors over the next decade –
providing businesses with the stability and certainty to make
long-term investment decisions in the UK.
The MoC builds upon the foundation of the enhanced global
strategic partnership outlined in the Hiroshima Accord of May
2023 and complements existing frameworks such as the UK-Japan
Comprehensive Economic Partnership Agreement (CEPA) and both
nations' membership of the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP).
To mark the occasion, the British Embassy in Tokyo has launched
“Expand in Japan” – an initiative to champion and support UK
investors seeking opportunities in the Japanese market. Companies
can register their interest here.
The signing comes as the Minister for Investment is in Tokyo to meet with
key Japanese investors and government partners.
It also follows the UK's recent National Day celebration at Expo
2025 Osaka, where the UK Pavilion, themed “Come Build the
Future,” has been showcasing Britain as a global hub of
innovation.
Nearly 1,000 Japanese companies have already established
operations in the UK, with £87 billion in investment stock. This
new agreement aims to strengthen reciprocal investment flows,
supporting both nations' economic growth and security objectives.
, President of the British
Chamber of Commerce in Japan, said:
We welcome this close partnership which enables UK companies to
invest, innovate, and drive growth in Japan – this is a strong
signal of Japan's openness to high-quality investment. UK
companies in Japan already create high-quality jobs across the
country, develop deep partnerships, and offer world-leading
products, services and solutions to multiple sectors in the
market.
We will continue to work with the UK and Japanese governments to
enable further UK investment into Japan. As a membership
organisation supporting British companies in the Japanese market,
we look forward to seeing more companies doing business here.
Martin Kent, His Majesty's Trade Commissioner for Asia Pacific,
said:
This new partnership with the Japanese Government is about
turning ambition into action – unlocking opportunities for UK
businesses in key sectors aligned with our Industrial Strategy –
and building mutual prosperity with Japan. I look forward to the
collaboration, innovation, and growth that will emerge following
today's signing.
Notes to Editors:
- The UK-Japan relationship has been strengthened through
multiple agreements including the 2023 Hiroshima Accord, a
bilateral free trade agreement in 2020, UK's accession to CPTPP
in 2024, and the launch of the Economic 2+2 in 2025.
- This agreement supports both the UK's Modern Industrial
Strategy and Japan's Program for Promotion of Foreign Direct
Investment.
