BOOK REVIEW | Japan's Economic Security: Protecting the Nation and Its People, by Sanae Takaichi

In her latest book, Minister of Economic Security Sanae Takaichi explores Japan's strategies for safeguarding critical information amid rising global threats. The work is titled Japan's Economic Security: Protecting the Nation and Its People (Nihon no keizai anzen hoshō kokka kokumin o mamoru ōgonritsu, Asukashinsha, 2024). However, currently it is available only in Japanese.

Central to the book is Japan's newly established security clearance system, introduced in June 2024. It enforces rigorous vetting for accessing classified national and economic data. Modeled on practices from G7 countries and Australia, the system includes thorough background checks as well as assessments to prevent information leaks.

In her book, Takaichi also highlights Japan's initiatives in managing space debris and advancing fusion energy technology. She details Japan's leadership in incorporating space debris management into the G7 agenda. In line with the aim of boosting Japan's energy self-sufficiency, she further outlines the Fusion Energy Innovation strategy.

*LDP Policy Research Council Chair Sanae Takaichi responding to an interview with a TV station at the LDP headquarters in Nagatacho, Tokyo, July 10 (©Sankei by Yasuhiro Yajima).*

Additionally, Takaichi addresses Japan's cybersecurity challenges and advocates for active cyber defense to counter escalating threats.

New Security Clearances

Of immediate relevance, Takaichi's book provides a detailed analysis of Japan's newly established security clearance system. Enacted in June 2024, it introduces a formal process to vet individuals who access classified information related to national and economic security.

Based on the approach in systems of other G7 countries and Australia, information deemed critical is categorized, and only those who pass the appropriateness assessment are authorized to handle it. Additionally, these individuals, known as clearance holders, face penalties for leaking information.

The new system evolved from former Prime Minister Shinzo Abe's focus on economic security. It furthermore builds on the framework of the Abe administration's Act on the Protection of Specially Designated Secrets. This previous law safeguarded information on defense, diplomacy, and terrorism. Once in place, partners could swiftly share sensitive intelligence with Japan, such as details on North Korean missiles.

Takaichi emphasizes that the new system is also designed to address emerging technology and economic security challenges. Those include cyber threats and dual-use technologies.

Clearing Up Misconceptions

Despite its importance, the law has faced domestic criticism. Some object to the nature of individual background investigations, such as checks on family background, criminal records, substance abuse, mental health, and financial conditions. Critics say they are concerned about privacy. They also emphasize their concerns about sharing financial and mental health evaluations. However, the law ensures that investigations are conducted with the individual's consent and in compliance with global standards.

On the other hand, without a security clearance system, partners were reluctant to share a wide variety of sensitive information. "One significant benefit [of the system] is the ease of participating in international joint research," Takaichi writes. "Dual-use technologies in fields like space, cybersecurity, artificial intelligence (AI), and quantum technology are on the rise. Having Japanese private companies involved in international joint research becomes easier if they have security clearance."

Overall, the security clearance system aims to protect crucial information by ensuring only vetted individuals can access it. In turn, that enhances Japan's ability to respond effectively to security threats.

Strategic Energy and Space Initiatives

One of the highlights of the book is a discussion of Japan's efforts in managing space debris. During Tokyo's G7 chairmanship in 2023, Takaichi successfully advocated for space debris management to be included in the agenda. "Initially, there was resistance from France and Canada, but we successfully garnered their support," she mentioned recently. As she explains in the book, this was crucial as debris generated by satellite destruction and experiments from countries like China and Russia poses significant risks to operational satellites traveling at speeds up to 28,000 km/h.

Japan's new Fusion Energy Innovation strategy, established in April, is also addressed in the book. With energy self-sufficiency at just 12.8%, the strategy focuses on developing nuclear fusion. This process uses deuterium and tritium from seawater and produces minimal radioactive waste. Takaichi emphasizes that successful fusion technology could "eliminate reliance on resource-rich countries and ensure a stable energy supply."

Technologies like tokamak and laser-based systems are also explored in the book, reflecting Japan's long-term energy plans. As Takaichi writes, the G7's inclusion of fusion energy in its discussions underscores its global significance. Furthermore, it highlights Japan's proactive role in promoting future energy solutions.

Strengthening Japan's Cyber Defense

Japan experiences a cyber attack every 14 seconds, according to reports. This is a sharp increase from attacks every 8.3 minutes a decade ago. Takaichi's book highlights this escalating cybersecurity challenge and the response measures being developed. Even hospitals in Japan have been targeted, leading to significant data losses. Similar incidents have occurred globally, including in the United States.

Takaichi emphasizes in her book and in public speaking events how cybersecurity requires a coordinated national effort. One example is a cyber attack on the Statistics Bureau that occurred when she was Minister for Internal Affairs. Although no information was leaked, the incident underscores the need for robust security measures and prompt responses to threats.

She also discusses the US approach to cybersecurity. As she notes in the book, it emphasizes proactive measures and the involvement of white hat researchers in uncovering vulnerabilities. This proactive stance includes addressing potential threats to medical devices and other critical systems.

Minister in Charge of Economic Security of Japan Sanae Takaichi (third from left), speaks at an expert panel meeting on the establishment of the security clearance system on December 20 in Tokyo. (©Kyodo)

In contrast, Japan's sense of urgency around cybersecurity has been criticized as insufficient. Takaichi responds by advocating for active cyber defense that preemptively neutralizing threats and responding to ongoing attacks. As the book explains, implementing this strategy requires amending several laws, including those governing telecommunications, unauthorized access, and malware use.

The national security strategy approved in December includes provisions for such measures. However, legislative changes are necessary for full implementation. Takaichi emphasizes the importance of expediting these legal arrangements to strengthen Japan's cybersecurity posture.

The Future of Japanese Security

In her new book, Minister Takaichi establishes an expectation for significant changes in Japan's security landscape. These will come in part from the increasing focus on economic security. She explains that, historically, integrating civilian technology with military applications has been challenging. However, since August 2023, Japan has been actively adopting economic security measures across various ministries.

She also highlights how technologies once used for civilian purposes are now being repurposed for military applications. For instance, information from satellites analyzed with AI can now be used to assess strategic areas, reduce special combat attacks, and detect suspicious activities, she notes in the book.

Integrating these civilian-developed technologies with the Ministry of Defense has become more streamlined. As economic security measures advance, Japan's overall defense capabilities will become stronger and more resilient, Takaichi writes. This shift reflects Japan's evolving approach to enhancing its national security through advanced technology.