Japan to Establish 'Economic Security Consultation Channel' to Prevent Technology Leakage to China

▲Yoshihide Suga, Prime Minister of Japan [Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Japanese government is pushing to establish a consultation channel on economic security issues together with economic organizations and major companies.

This is to prevent critical technologies from falling into Chinese hands amid deepening conflicts between the United States and China over technological supremacy. Furthermore, the goal is to build supply chains that do not overly depend on China.

According to the Nihon Keizai Shimbun on the 3rd, the Japanese government plans to launch a channel within the year where related ministries such as the National Security Secretariat (NSS), the Ministry of Economy, Trade and Industry, and major economic organizations like Keidanren participate to discuss economic security issues.

The Japanese government also intends to request companies operating in critical sectors such as semiconductors, telecommunications and IT (information technology), and nuclear power to establish economic security officer positions.

In this regard, it is reported that the 'Rule-Making Strategy Parliamentary League' led by Akira Amari, chairman of the Liberal Democratic Party's Tax System Research Council, will organize recommendations within a few days and discuss them with the government side.

The Nihon Keizai Shimbun pointed out that "China is implementing an 'Economic Statecraft' strategy that influences other countries' diplomacy and corporate activities through economic means," which is the very background for the Japanese government’s plan to establish a public-private joint organization to handle economic security issues.

It also added that this is related to the Biden administration in the United States reviewing the establishment of procurement systems that do not depend on China for core technologies or materials such as semiconductors and rare earths.

The Japanese government sees that communication with relevant companies is essential in the process of reviewing related policies, and therefore considers it necessary to have officers who can handle cross-departmental tasks on economic security issues. It is reported that the government has already unofficially requested several companies to establish such officer positions.

The Nihon Keizai Shimbun reported that in public-private consultations, the government’s views on capital investments that raise security concerns will be shared to prevent problems afterward, and for management-sensitive issues, the economic division of the National Security Secretariat is considering operating a system to provide individual consultations.

This content was produced with the assistance of AI translation services.