Japan’s Approach to Resilience and Economic Security

EXECUTIVE SUMMARY

MAIN ARGUMENT

Amid increased U.S.-China rivalry and Russia’s invasion of Ukraine, the impacts of great-power competition on economic interdependence have prompted Japan to pursue economic security through enhancing its self-reliance and technological leadership. Under Prime Minister Fumio Kishida, Japan placed economic security as a top policy priority, with key measures including the appointment of the first minister of state for economic security and the establishment of the Council for the Promotion of Economic Security, which produced the Economic Security Promotion Act. Kishida’s advancement of economic security policy built on the 2022 National Security Strategy, which tied the purpose of economic security to ensuring Japan’s national security interests. The aforementioned changes in the international environment have also led to renewed U.S.-Japan cooperation, which has prioritized economic security, particularly a de-risking strategy toward China, as a central component of the partnership. This strengthened cooperation has resulted in the U.S.-Japan Competitiveness and Resilience Partnership and the Japan-U.S. Economic Policy Consultative Committee.

POLICY IMPLICATIONS

• Japan’s economic security strategy is still ambiguous on several key parts. The Japanese government should pass additional legislation to clarify Japan’s definition of economic security and other concrete policy measures.
• More proactive measures should be taken to maximize the impact of Japan’s economic security policies, which have traditionally relied on defensive measures.
• The Japanese government should increase cooperation between the government and the private sector, including through additional regulatory steps and direct engagement between government and private-sector stakeholders, in order to strengthen the effectiveness of its economic security strategy.

Yuichi Hosoya is a Professor of International Relations at Keio University.