Japan’s government recently released a draft revision of the “Permanent Residency Review Guidelines,” which, for the first time, explicitly include family income, proficiency in Japanese language, and understanding of the Japanese system as important criteria for permanent residency qualifications. Observers believe that this draft reflects a significant shift in Japan’s foreigner policy. With the continuous increase of foreign residents in Japan, the government’s policy focus is transitioning from the previous emphasis on attracting overseas talents to gradually enhancing the quality of life and social integration of foreign residents.
On August 4th, Japan’s Immigration Services Agency announced the revision draft of the “Permanent Residency Review Guidelines.” Among the key changes is a substantial increase in the financial threshold for applying for “permanent residency” (equivalent to a U.S. green card), requiring applicants’ annual family income to continuously meet or exceed the average income level of Japanese households. Additionally, the future amount of retirement pension that can be received will be taken into consideration. In principle, the expected amount of retirement pension must reach the level obtainable after 30 years of contributions.
Furthermore, the draft introduces a new requirement to evaluate applicants’ Japanese language communication skills and their understanding of the Japanese social system and regulations.
The Japanese government is advancing the revision process through public consultations and aims for the “income review” related provisions to apply to applications submitted after April of this year, with other regulations to take effect from April next year.
It is important to note that this revision targets the assessment standards for permanent residency qualifications, not the renewal process of residency cards for those who have already obtained permanent residency. Under the current system, permanent residents renew their residency card every 7 years, which is mainly a matter of document renewal and does not require a reevaluation of permanent residency qualifications.
Japan’s decision to raise the threshold for permanent residency also reflects a change in policy focus due to the rapid increase in the foreign population in recent years. Around 2018, Japan faced a “shortage of labor,” with the core issue being “how to attract more foreign workers.” However, from 2025 to 2026, Japan is confronted with a “rapid increase in the foreign population,” and several Japanese media outlets and immigration policy researchers believe that the central issue is gradually shifting toward “how to manage foreign residents.”
The Japan Business Federation, the country’s largest business group, stated at the end of last year that the foreigner policy is in a “transition period,” emphasizing the need to shift focus by clearly targeting the desired talent pool and promoting “strategic recruitment.”
In its recommendations, the Japan Business Federation also pointed out that the illegal actions or violations by some foreign residents have raised concerns among certain segments of the population regarding security and fairness, leading to increased societal attention on Japan’s foreigner policy.
In recent years, scholars in Japan have similarly noted a changing trend in immigration policy. Professor Naoto Higuchi from Waseda University, a researcher in immigration policy, has pointed out in his recent studies that there has been a distinct shift in Japan’s immigration policy since the late 2010s. In response to labor shortages, Japan had previously expanded the intake of foreign workers. However, with the continuous increase in foreign residents, the immigration issue has gradually become politicized, and discussions within the government and ruling party concerning foreigner policy have been shifting towards a greater emphasis on public order, social governance, and the long-term integration of foreign residents.
While the revised “Permanent Residency Review Guidelines” in Japan apply to all eligible foreigners, the significant Chinese population in Japan, being the largest group of foreign residents and an important source of permanent residency applications, is expected to be noticeably affected by the raised permanent residency threshold and improved review system.
Official statistics from Japan indicate that there are approximately 930,000 Chinese residents in Japan, ranking as the largest foreign nationality group. Among them, around 358,000 individuals hold permanent residency, accounting for nearly 40% of the total Chinese population in Japan and representing the country’s largest group of foreign permanent residents. According to the current system, holders of permanent residency generally only need to update their residency card every 7 years, which is a document renewal process and does not involve reapplying for permanent residency, thus exempting them from the revised review criteria. It is widely believed that Chinese nationals will remain the primary group applying for permanent residency in the future, and therefore, the impact of the new regulations will be more evident in upcoming applications.
The Japanese government stated that revising the “Permanent Residency Review Guidelines” is part of constructing a “harmonious society with order” in its foreigner policy, aiming to establish a more comprehensive system for managing foreign residents while continually attracting overseas talent to promote better integration of foreign nationals into Japanese society.
Analysts point out that Japan has been adjusting its permanent residency system, managing work permits, and foreigner policy, indicating a gradual shift in focus from “attracting more foreign nationals” to “enhancing the settlement quality and social integration of foreign residents.” As Chinese nationals constitute the largest foreign nationality group in Japan and a vital source of future permanent residency applications, policy adjustments related to them are expected to have a significant impact, serving as a crucial window to observe Japan’s foreigner policy transitioning from “talent attraction” to “immigration management”.