Japan's 'economic security' may conceal protectionism
Thursday, May 26, 2022
Significance
It focuses on strengthening the security of key infrastructure, reinforcing supply chain stability, facilitating public-private cooperation on developing innovative technology and keeping patents on sensitive technologies secret. Timetables foresee action towards creating a resilient supply chain and strengthening technology within nine months. Other policies, such as patent secrecy and critical infrastructure security, will appear two years later.
Impacts
- China is seen as the main threat across all areas, from supply-chain vulnerabilities to cybersecurity, and will be the greatest loser.
- Semiconductors, pharmaceuticals and rare earths will likely receive special government support on account of their strategic importance.
- Foreign providers of cloud services may face local competition backed by the government.