A METI official outlines a philosophy of 'peace through economic strength.' The objective is not to develop economic statecraft to weaken adversaries, but rather to enhance Japan's own technological superiority and supply chain autonomy. This strength, they believe, enables Japan to maintain better relationships and engage more freely in the global market.
The term "economic security" has evolved. FDR used it to mean a social safety net. The Clinton administration defined it as safe global free trade. Today, it's viewed through a national security lens, treating economic and technological strength as a core component of national power, similar to military or diplomacy.
To gain corporate buy-in for its security agenda, Japan's government combines protective measures like export controls with promotional incentives like R&D support. This 'run faster' strategy reframes national security regulations from being a restrictive cost into a direct opportunity for innovation and expansion in strategic sectors.
Unlike military intelligence, the information needed for economic security—identifying strategic sectors and necessary actions—comes from businesses, researchers, and academia. Recognizing this, Japan's METI is building a global 'community' to ensure a flow of high-quality, real-world intelligence to inform its policies, as this expertise is not found inside government.
Japan's Ministry of Economy, Trade and Industry (METI) defines its economic security strategy through two core pillars. 'Strategic indispensability' means possessing superior, leverageable technology that others need. 'Autonomy' refers to having resilient supply chains for critical goods like energy and food. This dual framework guides their national policy.
The Ministry of Economy, Trade and Industry (METI) categorizes sectors to apply targeted policies. 'Green' areas have lost supply chain autonomy and require diversification. 'Blue' areas possess technological superiority and need control (e.g., export controls). 'Red' areas face disruptive innovation and demand proactive strategic investment.
To prevent businesses from forgetting supply chain risks after a crisis subsides, Japan's METI employs a two-pronged approach. They use a 'bottom-up' method of continuously sharing case studies with operational teams and a 'top-down' strategy of urging CEOs and boards to integrate geopolitical risk into core business decisions, much like ESG standards.