Revised Law for Sustainable Business Growth Takes Effect July 31

On July 28, 2026, the Cabinet approved an order setting the effective date of the revised law and an order revising related enforcement orders in connection with its implementation. The revised law in question was enacted by the 221st Extraordinary Diet session.

The background includes changes in international economic conditions, continued price increases caused by fluctuations in resource prices and other factors, population decline, and a declining birthrate combined with an aging population. In light of these changes in economic and social conditions, the amendments aim to further strengthen Japan's industrial competitiveness.

To promote the sustainable development of corporate business activities, the revised law positions investment, demand development, raw material procurement, industrial location, and living infrastructure as integrated support targets rather than separate ones.

For businesses, the support framework for increasing the added value of operations through domestic investment will move into the stage of institutional implementation when the revised law takes effect.

By promoting the development of overseas demand and the stable procurement of raw materials together, the direction toward strengthening the supply chains that support business activities will become clearer. The system's practical significance lies in addressing business growth opportunities and the stability of raw material procurement at the same time.

For regions and policy administration, the approach is to create an integrated business environment for corporate locations and local businesses by including not only the development of industrial sites but also the maintenance of living infrastructure that helps secure the people who support business activities.

The enforcement-date order provides, under the main provision of Article 1 of the supplementary provisions of the revised law, that the revised law will take effect on July 31, 2026. The revised law was promulgated on June 5, 2026, and a mechanism was used under which a cabinet order specifies the effective date within a period not exceeding three months from the date of promulgation.

In connection with the implementation of the revised law, the order revising related enforcement orders partially amends the Enforcement Order of the Industrial Competitiveness Strengthening Act and makes formal adjustments to provisions, including revisions to paragraph numbers.

The Enforcement Order of the Trade Insurance Act will be amended to establish procedural provisions necessary for payments to the national treasury and the redemption of government bonds. It is positioned as specifying by cabinet order the financial procedures associated with the revised law.

In the Enforcement Order of the Act on Special Accounts, government bonds issued under the amended Trade Insurance Act will be added to the government bonds defined by that act. This will allow government bonds related to the revised trade insurance system to be handled under the provisions governing special accounts as well.

The order revising related enforcement orders, which includes amendments to three enforcement orders, and the enforcement-date order are scheduled to be promulgated and take effect on July 31, 2026. Related materials include an outline, the draft orders and reasons, and comparative tables of the old and new provisions.