Nakasone Peace Institute (NPI: Chairman ASO Taro) published policy recommendations entitled "Japan's Economic Security in the New Era: Surviving in an Age of Growing Uncertainty." Under the leadership of Chairman Aso, NPI has conducted study and research focusing on economic security policy. These policy recommendations, reflecting discussions with policymakers and others, outline the recommended direction for addressing the urgent challenges facing Japan. NPI hopes that the recommendations will contribute to the development of government policies and the formulation of guidelines for the business activities of private enterprises. At the same time, NPI intends to use these recommendations to actively promote discussions both domestically and internationally and to deepen our research in order to contribute to the enhancement of Japan's economic security.

Summary of the Recommendations

International relations are undergoing a historic transformation. With economic power struggles among major nations and the emergence of the so-called Global South, the global structure is becoming more complex and uncertainty is increasing. Japan must consider its path forward based on the premise that it is surrounded by nuclear-armed countries and that it depends on the United States for security and lacks natural resources. Japan should firmly maintain the Japan-U.S. alliance as the cornerstone of its national security and proactively build diplomatic alliances to maintain a free and fair trade order. While Japan-U.S. tariff negotiations are an urgent issue, the importance of addressing economic coercion, mainly in relation to China, should be borne in mind.

　　While economic activity based on free competition and market mechanisms should remain a fundamental principle, it is necessary to make adjustments from the perspective of economic security. Specifically, the following nine areas must be addressed:

　1. Strengthening public-private cooperation to prevent information and technology leakage
　2. Enhancing the inward direct investment screening and monitoring system
　3. Strengthening international cooperation on information and technology leakage
　4. Securing stable resource supply by enhancing the resilience of international supply chains
　5. Securing technological leadership in advanced key areas such as AI
　6. Strengthening domestic capability for the research, development, production and procurement of defense equipment
　7. Recruiting and developing human resources in both public and private sectors with a focus on the space and cyber domains
　8. Building diplomatic partnerships to maintain a free and fair international economic order
　9. Utilizing public financial frameworks to respond to international development needs