According to Art. 19 of the Act on Promotion of Securing Quality of Public Works (Act No. 18 of 2005), government entities are permitted to adjust a target price based on the evaluation of technical proposals, particularly when novel technologies and innovations are introduced.

It is reported that the principle of non-discrimination is upheld in all procurement activities, except for preferences granted under Regional Trade Agreements (RTAs), of which Japan is a party. Currently, there are no active RTAs that grant treatment to suppliers from non-GPA (Agreement on Government Procurement) parties more favourably than suppliers from GPA parties. Suppliers from non-GPA parties are not excluded from participating in GPA-covered procurement. However, concerns have emerged over the limited participation of foreign companies in government procurement, which seems partly due to non-regulatory barriers, geographical distance from some overseas markets, and a lack of familiarity with the local market. Foreign industries have also raised issues about Japan's use of technical specifications in public procurement, claiming that these specifications have been employed to exclude certain foreign products and services.

Although the Japan Union is a signatory to the WTO Government Procurement Agreement (GPA), its coverage schedules do not include telecommunications-related services (CPC 754) and only partially cover telecommunications services (CPC 752), which are important service sectors for digital trade.

According to Arts. 4 and 6 of Act No. 85 of 1984, foreigners' aggregate ownership cannot exceed one-third of the aggregate voting rights of Nippon Telegraph and Telephone Corporation (NTT), which holds all the issued shares of NTT-East and NTT-West.

Under the Companies Act (Act No. 86 of 2005) and the Ordinance for Enforcement of the Companies Act (Ordinance of the Ministry of Justice No. 12 of 2006), residency requirements are imposed on the members of the board of directors of joint-stock corporations (Kabushiki Kaisha), which are considered the predominant entities in Japan. Specifically, at least one director and one executive officer with the right of representation must maintain an address and reside in Japan. This regulation pertains to joint-stock companies.

Japan has implemented foreign direct investment (FDI) screening mechanisms through the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949), supplemented by procedural regulations such as the Cabinet Order on Inward Direct Investment. Under this Act, foreign investors in "Designated Business Sectors" or "Core Business Sectors" are required to submit a prior notification to the relevant ministry. After reviewing the notification, the ministry may either approve, amend, or suspend the proposed investment.
According to the Cabinet Order on Inward Direct Investment, "Core Business Sectors" include industries where foreign investors (e.g., non-residents or foreign corporations) must file prior notification for direct investment, such as acquiring 1% or more of voting rights in a listed company or purchasing shares in an unlisted company. These sectors, considered highly sensitive, are generally not exempt from prior notification requirements due to national security concerns.
The List of Classifications of Listed Companies outlines core business sectors such as semiconductors and dual-use technologies, metal mining of significant mineral resources, cybersecurity-related services (e.g., network security monitoring and critical infrastructure protection), and telecommunications. Non-core business sectors include software, data processing services, and internet-use support businesses.

According to Arts. 8 and 184-11 of the Patent Act, the appointment of an agent is required if the applicant is not resident in Japan. Such an agent must be a resident of Japan or a firm registered to practice before the Japan Patent Office. In addition, pursuant to the Art. 184-4, translation of international applications is required into Japanese.

Japan is a party to the Patent Cooperation Treaty (PCT).

Japan has a copyright regime under the Copyright Act. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Arts. 30-50 list the exceptions, which include which include quoting and thereby exploiting a work that has been made public. In such a case, the work must be cited consistent with fair practices and within a scope that is justified for the purpose of news reporting, critique, study, or another place in which the work is quoted; to broadcast or cablecast a work that has been made public, in broadcast or cablecast programming for schools that conforms to the curriculum standards provided for in laws and regulations on school education; among others.

Japan has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.

Japan has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.

Japan is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).

In September 2009, the Japanese authorities imposed a definitive antidumping duty on imports of electrolytic manganese dioxide (HS 282010) (a component of the battery cathode mix in alkaline and lithium-ion batteries) from China. This measure was first reviewed and extended in March 2014 and, subsequently, in March 2019. The rate of duty imposed on imports originating in China ranges from 34.3% to 46.5%, depending on the company. In March 2023, the Japanese authorities announced the initiation of a sunset review of the definitive duty imposed on imports of the subject merchandise from China. This follows the application filed on January 2023 by Tosoh Hyuga Corporation and Tosoh Corporation.

The Japanese government maintains policies to encourage the participation of small and medium-sized enterprises (SMEs) in government procurement. According to Arts. 4 and 5 of Act No. 97, the central government and public corporations are required to set their own procurement target values for the procurement from SMEs on an annual basis. It has been reported that in 2021, the target amount for the procurement from micro, small, and medium-sized enterprises (MSMEs) by the Government was set at JPY 4.8 trillion (approx. USD 31 billion), which represents 61% of the total budget for public procurement spending. Furthermore, the target amount for new MSMEs that are less than 10 years old was set at 3%. In accordance with Art. 8, sub-central government entities follow the policies set up for the central government entities on an "endeavour basis".