Japan steps up economic security measures amid supply chain risks

13:21

By: Azzat Manal

Japan steps up economic security measures amid supply chain risks

Japan is stepping up efforts to strengthen its economic security as geopolitical tensions, supply chain disruptions and competition over critical technologies create new challenges for the global economy. Prime Minister Sanae Takaichi has highlighted the need to improve the country's ability to secure essential goods and maintain technological resilience.

Speaking about the government's economic security agenda, Takaichi said Japan must respond to a changing international environment in which disruptions to trade and supply networks can directly affect economic activity and people's daily lives. The issue has gained greater importance as countries seek to reduce vulnerabilities linked to dependence on overseas suppliers.

Japan's approach focuses heavily on securing supplies of strategically important materials and infrastructure. Semiconductors and critical minerals are among the areas receiving particular attention, while the government is also looking at infrastructure such as submarine cables and satellite-related services. Takaichi has previously identified resilient supply chains for energy and critical materials as a central element of Japan's broader economic and foreign policy.

The government is also examining ways to protect infrastructure considered essential to citizens and economic activity. Healthcare is expected to receive greater attention as authorities assess the security implications surrounding critical equipment and services. The objective is to reduce the potential impact of supply disruptions in sectors where shortages could have consequences beyond individual companies.

Another element of the strategy involves expanding the role of the Japan Bank for International Cooperation in financing overseas projects that are considered strategically important to Japan. Such projects can include resource development and critical infrastructure, with public financing intended to help reduce financial risks that could otherwise discourage private-sector participation.

Japan is also planning to strengthen cooperation between government and business in monitoring economic security risks. A dedicated research structure would examine emerging challenges, while a public-private forum would provide a mechanism for sharing information and discussing preventive measures.

The policy comes as Japan faces a global environment in which restrictions on exports of strategic materials, geopolitical tensions and disruptions to transportation routes can affect manufacturing and energy supplies. During her recent address to the United Nations General Assembly, Takaichi said geopolitical tensions had already disrupted trade, energy supplies and supply chains, while emphasizing the need to improve resilience.

Japan has also been expanding international cooperation to strengthen access to critical resources. Its RISE Partnership, for example, is designed to work with mineral-producing countries on mining, refining and processing capacity, while the RISE+ initiative under the World Bank Group includes Japanese financial support for infrastructure linked to critical minerals production.

Technology is another major component of Tokyo's economic security strategy. Japan and the United States have agreed to deepen cooperation in areas including artificial intelligence, semiconductors and critical minerals, with both governments linking technological capabilities to greater economic resilience.

The measures reflect a broader shift in economic policy, as governments increasingly view supply chains, energy resources, advanced technologies and strategic infrastructure as issues connected to national resilience. For Japan, strengthening these systems is intended to help businesses and public services continue operating even when international trade and supply networks face unexpected disruptions.