Japan's Cabinet approved Friday a draft law to promote economic security by strengthening supply chains for vital products such as semiconductors and to better cope with geopolitical risks associated with China and Russia.
As global competition intensifies in the high-technology field and concerns grow about cyberattacks, the government aims to enact the bill during the current parliament session through mid-June.
The bill stipulates the government will safeguard key infrastructure from cyberattacks, develop cutting-edge technologies through public-private cooperation and make certain patents related to sensitive technologies nonpublic.
To build stronger supply chains, the government will designate goods such as chips, pharmaceutical products and rare minerals as critical items for which the government will closely monitor and financially support suppliers' procurement plans.
In the infrastructure area including telecommunication and transportation, the government will screen equipment that operators plan to install to mitigate vulnerability to cyberattacks and prevent use of parts from overseas that could pose security threats.
To support development of dual-use technologies for commercial and military applications, the government will set up a committee comprised of government officials, representatives from private companies and researchers from universities.
A fund worth 500 billion yen ($4.3 billion) is planned for the purpose, while a state-run think tank will provide support by conducting research on the latest technological developments overseas. Members from the private sector will have confidentiality obligations.
The bill also introduces rules on the nonpublication of certain inventions applicable in the nuclear and defense fields.
It sets punishment of 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 in view of concerns raised about examining their personal history.
