Japan's Intelligence Reform Faces Counterintelligence Challenges

As Japan strengthens its intelligence capabilities amid a worsening regional security environment, experts stress the urgent need to bolster counterintelligence measures to protect national secrets and technology from foreign espionage. The establishment of the National Intelligence Council (NIC) this summer is part of this effort, with Prime Minister Takaichi Sanae acknowledging the threat of sensitive technology leaks to foreign intelligence services. "We will continue discussions on 'enhancing foreign intelligence collection' and 'strengthening the prevention of improper foreign influence' while maintaining a balance with the people's 'liberty and human rights,'" she stated at a recent press conference. However, experts emphasize that as Japan advances its intelligence reforms, it must simultaneously consider strengthening its counterintelligence capabilities. This is critical not only for the development of Japan's foreign intelligence service but also for its aspirations to play a larger role in intelligence liaison relationships with allies like the U.S. and its Five Eyes partners. Strengthening Japan's ability to defeat foreign espionage is paramount for Japanese policymakers. Counterintelligence encompasses all measures a nation takes to protect its citizens, secrets, and technology from foreign spies. This includes organizations like the Committee on Foreign Investment in the United States (CFIUS), which oversees business acquisitions, and the Defense Counterintelligence and Security Agency (DCSA), which investigates suitability for classified information access. Counterespionage, activities aimed at penetrating, defeating, and manipulating foreign intelligence services, is also a key component. Currently, Japan lacks a comprehensive anti-espionage law. The primary relevant legislation is the Act on the Protection of Specially Designated Secrets, enacted in December 2013, which allows government agencies to restrict access to information deemed critical to national security due to the risk of severe damage if disclosed. However, further institutional and legal reforms are necessary to bolster Japan's counterintelligence framework. A clear definition of what constitutes covered information under anti-espionage laws is crucial, especially given that countries like China engage in extensive open-source intelligence (OSINT) collection, including technical literature analysis, patent review, product reverse engineering, and capturing conversations at scientific meetings. According to scholars, China engages in a broad spectrum of collection activities. Given the threat posed by China and OSINT collection, Japan should create a legal definition of covered information that both defends Japanese national security, but also protects civil liberties. Furthermore, intelligence oversight is vital. Concerns stemming from past political repression have historically led to caution regarding the establishment of independent intelligence agencies akin to the CIA in Japan. These concerns are still prevalent in Japan some seven decades on. Social Democratic Party lawmaker Fukushima Mizuho said that that the new NIC "infringes upon the right to privacy and other rights and paves the way for a surveillance society." To address concerns about abuses by intelligence agencies, Japan should consider creating legislative committees dedicated to intelligence and provide oversight. Through legislative hearings and control over funding, a Diet Committee on Intelligence would provide public oversight of counterintelligence enforcement activities. Finally, counterintelligence needs to be integrated across the entire Japanese intelligence community. While the Takaichi administration's reforms have focused on centralizing operations in the Kantei, the counterintelligence mission cannot be siloed in one independent agency. Intelligence benefits from compartmentalization, especially through authority that enforces that need-to-know principle is necessary. It would also be easier to allow each intelligence agency to conduct its own counterespionage operations, as they have the best insights on how to manipulate their intelligence targets. While centralization has been a primary outcome of the Takaichi administration's intelligence reforms, not all aspects of the counterintelligence mission can benefit from this perspective. The Takaichi administration should be congratulated for its efforts to strengthen its intelligence capabilities. Counterintelligence is a critical part of this, and continued focus on this area will be essential for Japan's national security. Information Source: The Diplomat Indonesia