[Policy Proposal] Japan's Economic Security in the New Era: Surviving an Era of Rising Uncertainty

Overview

A policy proposal document published by the Nakasone Peace Institute titled "[Policy Proposal] Japan's Economic Security in the New Era: Surviving an Era of Rising Uncertainty." It presents a comprehensive strategy for Japan to ensure economic security while achieving sustainable growth during this historic turning point in international order. ## Key Points ### 1. Proposal Overview - **Issuing Organization**: Nakasone Peace Institute (Public Interest Foundation) - **Publication Date**: July 1, 2025 (announced June 30) - **Number of Proposals**: 9 specific policy recommendations - **Basic Philosophy**: Maintaining and strengthening a free and open international economic order - **Objective**: Establishing Japan's economic security in an era of uncertainty ### 2. Current International Situation Assessment - **Historic Turning Point**: - Structuralization and prolongation of US-China confrontation - Integration of economics and security - Intensification of technology hegemony competition - Normalization of geopolitical risks - **New Challenges**: - Rise and expanding influence of the Global South - Challenges to international rules-based order - Weaponization of economic coercion - Exposure of supply chain vulnerabilities ### 3. Nine Policy Proposals #### Proposal 1: Strengthening Information and Technology Leakage Prevention - **Building Public-Private Partnership System**: - Establishing information sharing platforms - Full operation of security clearance system - Supporting voluntary corporate initiatives - **Promoting International Cooperation**: - Strengthening information sharing with like-minded countries - Developing common standards - Utilizing multilateral frameworks #### Proposal 2: Strategic Management of Inward and Outward Investment - **Monitoring System**: - Real-time surveillance system - AI-powered risk analysis - Early warning mechanisms - **Strengthening Review System**: - Clarification of critical sectors - Enhancement of pre and post-review - Expansion of enforcement system #### Proposal 3: Supply Chain Resilience - **Identification of Critical Materials**: - Semiconductors, rare earths, etc. - Pharmaceuticals and medical devices - Energy-related materials - **Diversification Strategy**: - Diversifying procurement sources - Strengthening cooperation with friendly nations - Supporting domestic production return #### Proposal 4: Leadership in Advanced Technologies - **AI and Quantum Technology**: - Significant expansion of R&D investment - Deepening industry-academia-government collaboration - Leading involvement in international standardization - **Human Resource Development**: - Strengthening STEM education - Securing and retaining advanced talent - International talent exchange #### Proposal 5: Promoting Domestic Production of Defense Equipment - **R&D Capabilities**: - Strengthening fundamental technologies - Promoting utilization of civilian technologies - Long-term perspective investment - **Defense Industrial Base**: - Supply chain strengthening - Promoting SME participation - Balancing with export controls #### Proposal 6: Strengthening Space and Cyber Domains - **Urgent Human Resource Development**: - Expanding specialized education programs - Establishing practical training environments - Establishing career paths - **Capability Building**: - Improving attack response capabilities - Strengthening international cooperation - Deepening cooperation with private sector #### Proposal 7: Maintaining and Developing International Economic Order - **Rule Formation**: - Contributing to WTO reform - Leading new field rule-making - Promoting regional economic integration - **Economic Diplomacy**: - Developing values-based diplomacy - Expanding economic security dialogues - Multi-layered partnerships #### Proposal 8: Strategic Response to Development Needs - **Quality Infrastructure**: - Leveraging Japan's strengths - Emphasizing green and digital fields - Responding to local needs - **Utilizing Public Finance**: - Strengthening functions of JICA, JBIC, etc. - Collaboration with private funds - Risk money supply #### Proposal 9: Establishing Comprehensive Promotion System - **Command Center Function**: - Expanding National Security Bureau functions - Utilizing Economic Security Promotion Council - Strengthening cross-ministerial coordination - **Public-Private Cooperation**: - Regular dialogue mechanisms - Institutionalizing information sharing - Building joint response systems ### 4. Basic Principles in Implementation - **Respecting Market Mechanisms**: - Necessary intervention while maintaining free competition - Maximum utilization of private sector vitality - Minimizing regulations - **International Cooperation**: - Strengthening cooperation with like-minded countries - Compliance with international rules - Maintaining open stance ### 5. Sector-Specific Approaches #### Semiconductors and Advanced Technologies - Strengthening Japan-US-Korea-Taiwan cooperation - Concentrated investment in next-generation technology development - National strategy for human resource development and retention #### Energy Security - Expanding renewable energy - Strategic utilization of nuclear power - Efforts toward hydrogen society realization #### Food Security - Strengthening domestic production base - Diversifying import sources - Promoting smart agriculture ### 6. Regional Strategies - **US Relations**: Balancing alliance deepening and autonomy - **China Relations**: Distinguishing constructive engagement and vigilance - **ASEAN**: Supporting regional centrality - **Europe**: Values-based cooperation - **Global South**: Inclusive approach ### 7. Risk Management Framework - **Early Warning System**: - Economic security dashboard - Regular scenario analysis - Introduction of stress tests - **Crisis Response System**: - Emergency response manual - Clarification of command structure - Conducting training and exercises ### 8. Implementation Schedule - **Short-term (within 1 year)**: - Completion of critical technology identification - Establishment of public-private consultation bodies - Implementation of initial measures - **Medium-term (3 years)**: - Establishment of major systems - Building international frameworks - Initial evaluation of results - **Long-term (5-10 years)**: - System establishment and deepening - Responding to new challenges - Continuous improvement ### 9. Success Indicators (KPIs) - **Quantitative Indicators**: - Domestic procurement rate of critical materials - Number of patents in advanced technology fields - Cyber attack response capability - **Qualitative Indicators**: - International presence - Depth of alliances and partnerships - Degree of economic autonomy ### 10. Future Outlook This proposal presents a comprehensive roadmap for Japan to contribute to maintaining a free and open international order while ensuring its own economic security. In an increasingly uncertain international environment, it aims to achieve both sustainable growth and security through a strategic approach that leverages Japan's strengths while deepening cooperation with countries that share common values.