Economic Security and New Industrial Policy

Shiro Armstrong, Mireya Solís and Shujiro Urata

Asian Economic Policy Review, 2025, vol. 20, issue 2, 265-275

Abstract: The paper analyzes the emergence of Japan's economic security strategy to address the risks of weaponized interdependence in a context of heightened geopolitical tension. We detail the rapid institutionalization of economic security measures through the adoption of an Economic Security Promotion Act and ongoing reforms in areas such as foreign direct investment screening and export controls. We find, however, that Japan has made little headway in reducing its dependence on China for critical products, and export controls have had ambiguous trade effects. We discuss the role of the private sector in economic security and find significant divides by firm size on the uptake of new measures to address supply chain vulnerabilities and the protection of sensitive technologies. We examine the new industrial policy on semiconductors and point to the exigencies of success in fostering cutting‐edge technologies. Our conclusion identifies policy challenges going forward and offers possible solutions.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/aepr.12502

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:asiapr:v:20:y:2025:i:2:p:265-275

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1832-8105

Access Statistics for this article

Asian Economic Policy Review is currently edited by Takatoshi Ito, Akira Kojima, Colin McKenzie and Shujiro Urata

More articles in Asian Economic Policy Review from Japan Center for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().