Japan approves bill to boost economic security

The Cabinet of TOKYO Kyodo approved a draft law to promote economic security by strengthening supply chains for vital products, such as semiconductors, and to better cope with the geopolitical risks associated with China and Russia.

The bill is intended to be passed during the current parliament session as global competition intensifies in the high-tech field and concerns grow about cyberattacks.

The bill stipulates that the government will safeguard key infrastructure from cyberattacks, develop cutting-edge technologies through public-private cooperation and make certain patents related to sensitive technologies non-public.

To build stronger supply chains, the government will designate chips, pharmaceutical products and rare minerals as critical items for which the government will closely monitor and financially support suppliers' procurement plans.

The government will look at equipment that operators plan to install to minimize vulnerability to cyberattacks and prevent use of parts from overseas that could pose security threats in the infrastructure area, including telecommunication and transportation.

The government will set up a committee consisting of government officials, representatives from private companies, and researchers from universities to support the development of dual-use technologies for commercial and military applications.

A fund worth 500 billion yen $4.3 billion is planned for the purpose, while a state-owned think tank will conduct research on the latest technological developments overseas. Members of the private sector will have confidentiality obligations.

The bill introduces rules on the non-publication of certain inventions that are applicable in the nuclear and defense fields.

It sets up up to two years in jail for individuals reporting false information in infrastructure project screening or leaking nonpublic patent data.

Discussions over whether to grant private citizens a security clearance status allowing access to sensitive information was put off because of concerns raised about examining their personal history.