The new push for improved cyber resilience is also included in Japan’s long-term domestic Economic Security Strategy spearheaded by Prime Minister Fumio Kishida — mainly designed to curb Chinese threats —which has now been consolidated due to the grave situation unfolding in Europe.
First-of-its-kind Economic Security Bill
This is Japan’s first economic security bill to date that aims to directly enhance the defense of the supply chain and improve autonomy that will support the development of new technology and curb potential security risks. The bill should consolidate supply sources, improve data privacy on patents and create regulatory checks on core infrastructure (energy, IT, transportation, and finance) as well as reduce dependence on China as a supply chain. As such, Japan is issuing subsidies that will promote domestic manufacturing and cooperation with Asian nations other than China. Analysts say such strategies will give the U.S. and Japan a much-needed edge in competing with Beijing’s export of critical technologies like security cameras and commercial drones.
Move Spearheaded by Japan’s Prime Minister
Prime Minister Kishida urged domestic organizations to be on high alert against incoming cyberattacks. This includes strengthening security, tightening access and identity management as well as confirming “cyberattack response procedures” in all areas including in overseas offices. Several domestic organizations have voiced their concerns about the bill, requesting the government be as selective as possible in the application of new regulations, which are expected to be fully in effect in two years. “We need to once more deepen our awareness about the threat of cyberattacks,” Japan’s Chief Cabinet Secretary Hirokazu Matsuno added. Japan’s new security bill will now make its way to parliament where Kishida’s Liberal Democratic-Party coalition has the majority, therefore making it very likely to pass.
Japan Following U.S. Footsteps
Japan is following its ally the U.S., both also part of “The Group of Seven” nations, on the roadmap to strengthening cybersecurity counter-measures as the risk of cyberattacks and supply chain risks trends vertically. The new draft bill legislation is going to further align Japan with the U.S. and comes after Japan has joined the U.S. and the EU in recently imposing sanctions on Russia. Several nations, now including the U.S., Japan, and Australia are making progress to secure the all-important supply chain which is deemed as one of the most sensitive areas of the global economy going forward. “Japan is working with the United States and Australia to support the creation of trustworthy communication infrastructure in Asia, mainly through funding aid via state-owned financial institutions,” vice finance minister for international affairs Masato Kanda said.
