Few Japan firms take steps toward economic security, government paper finds
Only about 30% of Japanese companies have taken substantive measures to ensure economic security, such as diversifying procurement sources and strengthening cybersecurity, with less profitable firms tending not to take any such action, according to a government report released Friday.
According to the 2026 white paper on manufacturing industries, adopted at a Cabinet meeting the same day, the proportion of firms working on economic security measures had risen from about 40% in fiscal 2024 to about 60% in fiscal 2025. Still, a large share of firms claiming to implement economic security efforts were merely collecting information on international affairs.
The white paper said that companies need to make management decisions from a medium- to long-term perspective without being deterred by short-term costs, in order to make progress on economic security efforts. It emphasized the importance of government leadership in fostering a sense of urgency.
The report also emphasized the need for companies to review their supply chains, citing China’s stricter export controls on rare earths and the risks of relying on the Middle East for oil products, which became apparent following a de facto blockade of the Strait of Hormuz, a key oil shipping route.
Advertising by Adpathway
