Nagashima Ohno & Tsunematsu | View firm profile
Introduction
In recent years, the international environment surrounding companies has rapidly shifted from an era in which free cross-border economic activity was taken for granted to one in which companies must design their business operations taking into account geo-economic risks. For Japanese companies that may be affected by such changes in the environment, it has become increasingly important to assess developments in economic security policies across jurisdictions and to develop management strategies, together with detailed initiatives based on these strategies, to enhance their autonomy and indispensability. At the same time, many companies express concerns that such initiatives will increase costs in the short term and that it is difficult to determine the appropriate level of compliance. However, corporate efforts to address economic security and enhance autonomy and indispensability, including diversifying procurement sources to ensure supply stability, delivering products and services incorporating robust cybersecurity, or implementing measures to prevent the leakage of critical technical information, represent more than mere risk management. Over the medium- to long- term, these efforts enhance corporate value and create new business opportunities.
In light of these developments, on November 20, 2025, the Ministry of Economy, Trade and Industry (METI), following deliberations by the “Study Group on Economic Security Management Guidelines” comprising private-sector experts and other stakeholders, released a draft “Economic Security Management Guideline” (the “Guideline”). The Guideline outlines the principles of which management should be aware and directions for initiatives when companies address economic security. The Guideline is open for public comment until December 26, 2025, after which METI intends to release a finalized version. METI also anticipates that Guidelines will be reviewed and updated on an ongoing basis in response to changes in the international environment, policy trends, and other developments.
Since the renewed focus on economic security, driven by factors such as intensifying U.S.-China strategic competition, the expanded use of economic statecraft to exert influence through economic measures, and the COVID-19 pandemic, there has been extensive debate from various standpoints, perspectives, and angles regarding how companies should approach economic security. The Guideline is based on this accumulated body of discussions, and does not substantively introduce new arguments or perspectives. Nevertheless, it has significant value in that METI has distilled the key points of what had previously been somewhat fragmented discussions and presented, in relatively general terms, principles of which management should be aware and directions for initiatives. In this newsletter, attorney-at-law Mr. Osawa, who handles numerous matters related to economic security, together with Mr. Kitani and Ms. Morishita, as well as attorney-at-law Mr. Yuasa, who was involved in developing the Guideline as a member of the aforementioned study group and is familiar with its outline and drafting background, summarize the Guideline’s key points and discuss practical considerations for companies contemplating economic security responses tailored to their specific circumstances.
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[Author]
Oki Osawa (Partner)