New Regulations in Japan to Prevent Technology Leakage: How Should Enterprises Respond?

Home ? Trade Compliance ? New Japanese Regulations on Preventing Technology Outflow: How Should Enterprises Respond?

Today, with the increasingly fierce global technological competition, how to effectively protect core technologies has become a top priority for governments and enterprises around the world. Japans newly introduced Act on Promotion of Economic Security is an important measure to address this challenge. For enterprises, understanding and complying with these new regulations can not only ensure technological security but also gain an advantage in the international market.

I. Background of the Introduction of the Act on Promotion of Economic Security,

Intensification of Global Technological Competition
With the intensification of global technological competition, countries pay more attention to the protection of high - tech fields. Especially in fields such as semiconductors, advanced electronic components, storage batteries, machine tools and industrial robots, aircraft components, etc. These technologies not only represent a countrys innovation ability but also an important guarantee for national security and economic security.

Hidden Risks of Japanese Technology Outflow
Japan has a rich reserve of high - end technologies, which are highly competitive in the global market. However, with the deepening of international cooperation and exchanges, the risk of technology outflow has gradually increased. In order to prevent the leakage of core technologies and maintain Japans international competitiveness in high - tech fields, the Japanese government has introduced a series of measures aimed at strictly controlling and managing the outflow of these technologies.

Necessity of Economic Security Assurance
In 2022, Japan passed the Act on Promotion of Economic Security, which stipulates specific important materials in 12 fields and supports the development of these fields through subsidies, etc. At the same time, in order to prevent technology outflow, strict management measures have been formulated. In 2024, regarding ChinaMedical EquipmentThe first IPI investigation in the market also demonstrates Japans determination and efforts in preventing technology leakage.

II. Institutional Framework of the Act on Promotion of Economic Security,

Key areas and subsidy policies
The Economic Security Promotion Law covers specific important materials in 12 areas, with 5 areas receiving particular attention: semiconductors, advanced electronic components, batteries, machine tools and industrial robots, and aircraft parts. The Ministry of Economy, Trade and Industry of Japan will revise and implement announcements related to subsidies. Enterprises receiving subsidies are required to assume the obligation of preventing technology leakage.

Semiconductors are the core of modern technology, especially cutting - edge products below 30 nanometers, which have a high technological content and market value. Japan will adopt strict management measures in the semiconductor field to prevent the leakage of cutting - edge technology.

These areas involve core components of high - tech products such as electric vehicles and smart devices. Japan ensures that these key technologies are not leaked through subsidies and strict management measures.

Machine tools and industrial robots are basic equipment in the manufacturing industry. Japan has a high technical level in these areas, and preventing technology leakage helps maintain its competitiveness in the global manufacturing industry.

Aircraft parts technology involves high precision and high reliability, which has an important impact on national security and economic security. Japan will strictly control the technology leakage in this area.

Subsidy conditions and the obligation to prevent technology leakage
The Ministry of Economy, Trade and Industry of Japan requires enterprises receiving subsidies to take a series of measures in technology management to ensure that technology does not leak. The main measures include:

Enterprises must first apply to the Ministry of Economy, Trade and Industry for the core technologies that should be prevented from flowing overseas. For example, semiconductor materials and the production process of carbon fiber for aircraft, etc.

Limit the number of talents with access to important technologies. When leaving the company, they need to sign a commitment not to take away the technology. When sharing technology, a confidentiality agreement must be signed, and the number of people with access to important technologies should be limited.

Enterprises need to regularly confirm the technology management situation of customers and report to the Ministry of Economy, Trade and Industry in advance when increasing production in other countries. Especially when producing or increasing production of important technologies in other countries, they need to report in advance to prevent technology leakage.

Penalty measures for violations
If an enterprise violates the regulations, it may be required to return the subsidy. Especially in the semiconductor field, when the production of cutting - edge products in other countries increases by more than 5% or the production of traditional semiconductors in other countries increases by more than 10%, it needs to report in advance. Otherwise, it will face severe penalties.

III. Trends and Comparisons of Global Technology Protection

Measures taken by the United States
The United States has also adopted strict technology protection measures. According to the CHIPS and Science Act, the United States provides subsidies to companies such as TSMC for factory construction, etc. Enterprises receiving subsidies are not allowed to expand their production capacity in countries that are opposed to the United States, such as China or Russia, within 10 years. If they violate the regulations, they will be required to return the subsidy.

Measures taken by South Korea and Taiwan region of China
South Korea allows enterprises to restrict the job - hopping of important technical talents in semiconductors and other fields recognized by the government to other enterprises. The Taiwan region of China stipulates that talents involved in important technologies need to obtain permission from the authorities if they go to the Chinese mainland.

Further measures taken by Japan
Japan is not only strengthening countermeasures in terms of subsidies but also in export control to prevent technology transfer. Materials and technologies with a high risk of military conversion are included in the control list and are strictly managed. It is expected that the foreign exchange laws will be revised to include cutting - edge technologies with a high Japanese share as objects of prior reporting.

IV. Case Analysis and Countermeasure Suggestions

Response of Japanese semiconductor enterprises
Take a Japanese semiconductor enterprise as an example. This enterprise has received government subsidies and support for technology research and development funds. In terms of management, the enterprise strictly limits the number of employees with access to important technologies and ensures that these employees sign a commitment not to take away the technology when leaving the company. At the same time, when sharing technology with customers, the enterprise has signed a detailed confidentiality agreement to ensure that the technology will not leak through customers.

Response strategies of Chinese enterprises
When participating in international technology cooperation and market competition, Chinese enterprises should pay close attention to the technology protection measures of countries such as Japan and formulate corresponding countermeasures. For example:

Chinese enterprises should strengthen the management of their own technologies to ensure that core technologies do not leak. At the same time, they should sign strict confidentiality agreements with partners to prevent technology leakage through cooperation channels.

When arranging global production, they should understand and abide by the technology protection policies of various countries in advance to avoid being punished for violating regulations. For example, when producing or cooperating in Japan, they should report to the Ministry of Economy, Trade and Industry in advance to ensure compliance.

Chinese enterprises should actively participate in the formulation of international standards to enhance their voice in the international technology field. This helps to obtain more competitive advantages in the global market and also helps to reach a consensus with various countries in terms of technology protection.

Essential for Export Enterprises: How to Choose an Efficient Tax Rebate Agency Company?

Japans adoption of strict measures in 5 areas such as semiconductors to prevent technology leakage is an inevitable choice in the context of intensifying global technology competition. Through the Economic Security Promotion Law and a series of specific measures, Japan hopes to maintain its international competitiveness in high - tech fields. When facing these measures, Chinese enterprises should strengthen technology management, reasonably arrange global production, and actively participate in the formulation of international standards to cope with the challenges and opportunities brought by international technology protection policies.

In the future global technology competition, how to effectively protect core technologies while obtaining competitive advantages in the global market will be an important issue faced by enterprises in various countries. Through reasonable policy responses and technology management, enterprises can achieve steady development in the global market and remain invincible in the fierce technology competition.