METI may list undersea cables and satellites as critical for economic security
The Ministry of Economy, Trade and Industry plans to add new items, including undersea cables and satellites, to come under the purview of the economic security policy amid an increasingly uncertain geo-economic climate.
The ministry's panel of experts discussed these new items as part of its revised economic security strategy on Tuesday. As major global powers — the U.S. and China — become more protectionist, securing resources for key industries has become vital for economic security.
Under the Economic Security Promotion Act, the government implements a range of measures to secure vital supply chains, from providing subsidies and low-interest loans to coordinating regulations, stockpiling essential goods, setting up critical infrastructure, and protecting advanced technologies.
Among the technologies proposed for inclusion under the policy are rockets, fusion energy and parts and materials used for nuclear power. The ministry plans to incorporate them in a revised action plan after an approval from the expert panel in late May or June.
'We need to make Japanese products, technologies and infrastructure indispensable,' a ministry official who briefed reporters said. 'Japan needs to be an irreplaceable presence to the world.'
For certain core industries, the ministry emphasized the need for Japan to be self-sufficient so that it is able to manufacture technologies from start to finish without a dependence on other countries.
Citing an example, the trade ministry official stressed the need for Japan to develop the capability to lay undersea cables on its own in addition to manufacturing them.
Currently, 99% of Japan's international communications — from wired internet to smartphone networking — rely on undersea cables. Although Japan's NEC is one of the world's top three manufacturers of undersea cables, holding about 30% of market share, Chinese companies have been rapidly growing their influence.
In the space sector, Japan has strengths in specific rocket components such as sensors, but still lacks full launch capability. The government aims to secure domestically produced parts and strengthen the country's ability to carry out independent space launches.
Taking into consideration the rapid growth of generative artificial intelligence, the government is making an all-out effort to support and advance the AI ecosystem. It also underlined a focus on improving efficiency by bringing power supply sources and AI data centers — which consume large amounts of electricity — closer together.
The ministry also plans to draft measures to prevent Japan's core technologies in Japan from leaking to other countries, which can occur through cyberattacks, joint research with foreign facilities and the actions of company executives or departing employees.
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