TOKYO, Japan – The government led by Prime Minister Sanae Takaichi has begun work on possible new laws to curb the theft of sensitive information and intellectual property by foreign actors. The research effort started in late 2025 and reflects rising anxiety about espionage as regional tensions grow.

The Takaichi administration, working with lawmakers from the ruling Liberal Democratic Party (LDP) and coalition partner the Japan Innovation Party, is considering a broad legal framework to increase openness around foreign-backed activity.

Under proposals being discussed, people and organisations acting for overseas interests could have to reveal who funds them and what work they carry out in Japan.

People familiar with the talks say the plan could share features with foreign agent registration rules used in other democratic countries. That could mean reporting duties for those involved in influence campaigns or information gathering connected to foreign principals.

During Diet debates in November 2025, Takaichi called for quick action. She said Japan faces the toughest and most complex security conditions since the war. Supporters say new rules are needed because existing laws often fall back on general theft offences or rules on unauthorised computer access. They argue that those measures do not match the scale or skill of state-backed operations.

The discussions also build on the Economic Security Promotion Act, while trying to close gaps left by current legislation.

Growing concern over intellectual property theft in Japan

A central driver is concern about intellectual property theft linked to China. Japanese authorities and overseas reports have warned of more cyber espionage aimed at key industries, including semiconductors, artificial intelligence, quantum technology, and biotechnology.

In recent years, hackers tied to China have been linked to dozens of attacks against Japanese national security targets and advanced companies. Analysts often connect this trend to Beijing’s “Made in China 2025” industrial policy. Critics say it encourages the rapid collection of overseas know-how, including through illegal means.

China has strengthened its own intellectual property system in recent decades and now leads global patent filings. Even so, claims continue that state-linked groups still target overseas firms to speed up domestic development.

Japan, home to global leaders in robotics, materials science, and electronics, says it has suffered serious losses. Cybersecurity specialists point to groups such as MirrorFace, which has been accused of running long-running campaigns against Japanese organisations. The alleged goal has been to steal trade secrets and weaken Japan’s position in global markets.

These incidents can damage company value and disrupt operations. They also raise national defence concerns because more technologies can be used for both civilian and military purposes.

The United States has voiced similar worries. The FBI has said most of its economic espionage cases have links to China, and it has estimated yearly losses to US firms in the hundreds of billions of dollars. Japanese officials say the pattern mirrors what Japan has faced.

Support at home, and warnings about overreach

Takaichi, Japan’s first female prime minister and a conservative leader, has placed economic security at the centre of her agenda since taking office in October 2025. The coalition agreement includes a pledge to move quickly on anti-espionage steps. With cabinet support staying strong into the new year, the government looks set to push forward during the next Diet session, which begins on 23 January.

Backers in the LDP describe the proposal as a way to protect Japan’s research base and high-value industries, which underpin its export economy. Some leaders in sectors such as automotive and electronics have supported stronger deterrents in private, pointing to the disruption caused by data breaches and leaks.

Opponents raise concerns about civil liberties. Campaigners and some opposition politicians warn that unclear definitions of “foreign interests” could affect academic ties, reporting, or normal business. Human rights groups also worry about unfair impacts on diaspora communities and cross-border research work.

A move shaped by regional tensions

The timing also reflects strained relations with China, including disputes linked to the Senkaku Islands and Taiwan. In November 2025, Takaichi described a possible Chinese move against Taiwan as an “existential threat” to Japan. Beijing criticised the remarks, and the exchange added to the sharp tone between the two sides.

Analysts say a new transparency law could add pressure to the relationship and might trigger retaliation. At the same time, it would bring Japan closer to allies such as the United States and Australia, which already use similar measures to counter foreign interference.

As talks continue, the government and ruling parties say they want to protect national security without weakening open democracy. Drafting work is expected to pick up over the coming months, with a goal of passing the law before the end of 2026.

In her New Year’s message, Takaichi repeated her promise to build a stronger and more prosperous Japan, and said the country will confront these threats directly. For a nation that depends on its technological edge, the outcome could shape how Japan defends its most valuable assets, its ideas, and its innovation.