Japan’s PM Takaichi Orders Revision to Economic Security Law to Support Supply Chains, Prevent Cyberattacks

The Yomiuri Shimbun
Prime Minister Sanae Takaichi, center, attends a meeting of the Council for the Promotion of Economic Security at the Prime Minister’s Office on Friday.

Prime Minister Sanae Takaichi instructed economic security minister Kimi Onoda to consider amendments to the Economic Security Promotion Law on Friday, aiming to address new security challenges while supporting the private sector’s overseas expansion to enhance international competitiveness.

“We will pursue robust economic growth through bold crisis management investment and ensure economic security,” Takaichi said at a meeting of the Council for the Promotion of Economic Security held at the Prime Minister’s Office on Friday morning.

With cyberattacks in mind, Takaichi mentioned the need to secure the stability of social infrastructure, including the medical field.

Takaichi is placing importance on crisis management investment that will strengthen supply chains in sectors directly linked to national strength. She stressed the necessity of responding to the challenging international security environment through strengthening supply chains.

Currently, the law primarily supports the securing of supply chains for semiconductors and other critical materials. Through the revision, the aim is to broaden the scope of government support to vital private-sector projects such as submarine cable laying, and thus expand crisis management investment.

The government is expected to consider the creation of systems to support private-sector projects overseas, such as port development and dock repairs at key points along transport routes for vital resources. It is also expected to establish a new think tank led by the Cabinet Secretariat that will act as a command center and set up a confidential council for public-private dialogue.

The envisaged support for overseas business operations is designed to counter China’s growing influence in Global South emerging and developing nations, where China has secured operational rights to key ports. Through the newly established framework on overseas economic security assistance, the government will help promote projects that deepen cooperation with the Global South. This includes plans to provide funding to companies undertaking port repair projects to ensure the uninterrupted flow of critical materials.

The amendment is also expected to designate medical facilities as core infrastructure, as countering cyberattacks against hospitals is an urgent priority. In 2022, the Osaka General Medical Center, operated by the Osaka Prefectural Hospital Organization, was hit by a cyberattack, which forced the suspension of outpatient services.

Upon being designated, regional hub hospitals and similar facilities will be required to undergo government pre-approval when they introduce critical equipment, including computer systems. The review will confirm the equipment’s integrity, including its resilience against cyberattacks.

The government will refine its plans based on opinions from an upcoming expert panel meeting. It aims to amend the law, which was enacted in 2022, during next year’s ordinary Diet session. The law is to be reviewed every three years, if necessary.