From left, Japanese Economic Trade and Industry Minister Koichi Hagiuda, Japanese Foreign Minister Yoshimasa Hayashi, Secretary of State Antony Blinken, and Secretary of Commerce Gina Raimondo stand for a photo during the US-Japan Economic Policy Consultative Committee (EPCC) at the State Department in Washington, on July 29, 2022 (Tom Brenner/Pool Photo via AP)

Part of Japan's economic security law has become effective and it aims to guarantee sustainable supplies of vital commodities, including semiconductors, and to support cutting-edge technologies' development amid rising geopolitical tensions, Kyodo News Agency reported on Monday.

The most important section of the law adopted in May has come into effect earlier than other provisions due to China's increasing influence on the global high-tech competition and a rapidly shifting security environment following the war in Ukraine, the agency said.

The said section of the law aims to bolster supply chains to guarantee reliable delivery of vital goods and ease the development of artificial intelligence and other advanced technologies through cooperation between public and private sectors.

Other components of the law include infrastructure audits by the government in such sectors, such as transport and telecommunications to decrease the vulnerability to cyberattacks and other risks. These components are expected to gradually become effective as of next year.

Kyodo cited the Japanese Minister for Economic Security, Takayuki Kobayashi, as saying, "Legislation on economic security draws attention from countries around the world... We would like to give our best to the execution of the law and tackle new challenges."

Kobayashi added that the cabinet has established an office with around 50 employees representing various agencies and ministries to promote Japan's economic security. The new office will elaborate basic guidelines on how to develop sustainable supply chains and boost public-private partnerships, which the cabinet will discuss in late September.

Kobayashi said enacting the economic security promotion law was also mentioned in a joint statement issued on Friday by the economy and foreign ministers of Japan and the United States at their inaugural "two-plus-two" talks in Washington.

Against the backdrop of challenges posed by Russia and China, the statement stressed that economic security is vital to overall security and that economic policy and diplomacy are intertwined and require a coordinated approach.

The two countries vowed to pursue the joint development of next-generation semiconductors at a research hub to be established in Japan, as well as foster supply resilience in other strategic items, such as critical minerals and batteries.

Kobayashi added that since Japan alone will not be able to build resilient supply chains for strategically important goods, cooperation with like-minded partners will be essential, Kobayashi said.

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