Ref: FIN-STRAT-2025-001 Verified: July 22, 2026

Strategic Directive: Leveraging Japan's Regional Special Zones to Attract Chinese Fintech FDI Amid UP Fintech Legal Challenges

Executive Liquidity Summary "Japan should implement a targeted policy package in regional special zones—outside Tokyo—to attract Chinese fintech firms facing U.S. legal uncertainties. Key actions: (1) Establish 'Asia Headquarters Special Zones' with streamlined licensing, tax holidays, and relaxed foreign ownership rules; (2) Offer subsidies for R&D centers and headquarters relocation; (3) Provide legal and compliance support for firms navigating cross-border regulatory challenges. This directive aims to capture FDI from Chinese companies like UP Fintech investors seeking stable, Asia-based alternatives, boosting Japan's fintech competitiveness and regional economic development."

The securities class action investigation against UP Fintech (TIGR) signals heightened regulatory and legal risks for Chinese fintech firms in the U.S. market. This creates a strategic opportunity for Japan to position its regional special zones (outside Tokyo) as alternative hubs for Chinese fintech companies seeking to establish R&D and headquarters operations. By relaxing foreign investment restrictions and offering incentives in these zones, Japan can attract Chinese firms diversifying away from U.S. exposure, while strengthening its own fintech ecosystem.