TOKYO (Reuters) – Japan’s parliament on Wednesday passed an economic security law aimed at safeguarding technology and strengthening critical supply chains, while also imposing tighter regulation on companies in Japan working in sensitive sectors or on critical infrastructure.
The legislative measures, which are primarily aimed at China, will be implemented within two years if they are implemented, according to the law. This comes after the United States imposed a ban on the import of technology, such as semiconductors, amid growing tensions in Beijing.
The new law also came as Russia’s invasion of Ukraine – which Moscow called its actions “a special operation” – added pressure on Japan to do more to protect supply chains and infrastructure from hacking and cyberattacks, and ensuring that technology critical to national security is not. stolen.
It will give the Japanese government the power to order companies to notify them of software updates and review certain equipment purchases in 14 industries, including energy, water supply, information technology, finance. and transportation.
The legislation also provides a subsidy for companies to help them strengthen supply chains against disruptions such as shortages of components shipped from abroad. It even created a system for government officials to conduct on -site inspections of companies.
The new security mechanism it outlines promises government money for research and development into key technologies considered important for economic security.
It also established a system of secret patents kept in Japan to ensure that technological advances were not used by other countries to develop nuclear weapons or other military equipment.
(Reporting by Kaori Kaneko and Tim Kelly; Editing by Kenneth Maxwell)
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