Revision of Economic Security Act

Prime Minister Sanae Takaichi ordered her ministers to begin the process of revisioning Economic Security Act, which passed three years from the activation. The revision will be made extending the basic infrastructures which are controlled by the law. Supply chain of important goods will be reinforced and overseas projects by private companies in Japan will be supported by the government. The government will launch a thinktank to oversee policies for economic security. 

In the meeting of ministers of Takaichi Cabinet for economic security, Takaichi ordered Minister in charge of Economic Security, Kimi Onoda, to discuss revisioning of Economic Security Act. The law was legislated by Fumio Kishida administration in 2022. Takaichi worked in Kishida Cabinet as the Minister in charge of Economic Security.

 

The economic security act consisted of four pillars: securing important goods such as semiconductors through reinforcing supply chain, keeping basic infrastructure safe from cyberattacks, promoting development of cutting-edge technology that is important for economic security, and covering patent related to sensitive technology. The law mandates the government to review within three years from the activation.

 

The law lists up fifteen kinds of basic infrastructure to protect, which include electricity, water supply system, gas, railroad or airlines. Takaichi government considers extending those infrastructures to medical care services. It was recognized that cybersecurity for medical services is crucial to protect people’s ordinary life, especially in the time of broad pandemic like COVID-19. The government is going to check medical devices when they are installed in the facilities.

 

Private projects in foreign countries are also supported by the government to contribute to security enhancement of countries with friendly relationship with Japan. The companies can extend its business, including laying submarine cable or launching rockets, to overseas with support from Japanese government. Takaichi promotes investment for security or disaster management as a strategy for economic growth, which was one of the three pillars of former prime minister Shinzo Abe’s economic policies called Abenomics.

 

The thinktank in the government will be an organization with experts in defense, diplomacy, economy, technology and information. They will collect and analyze information about economic security, which is overseen by the Cabinet Secretariat. Takaichi also plans to launch public-private council for sharing information in a confidential manner.

 

The projects for economic security seek both national security and economic growth. Although Takaichi is a follower of Abenomics, she admits that growth strategy was the most insufficient among three pillars of Abe’s economic policy. Trying to achieve both goals indicates that Takaichi administration has a mind close to Ministry of Economy, Trade and Industry.

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