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Japanese firms step up intelligence gathering as US-China tensions mount

More businesses cite geopolitics, economic security or regulatory change as key risks

A growing number of Japanese businesses are strengthening their intelligence gathering as the country finds itself increasingly exposed to the mounting tensions between the US and China.

Companies in sectors that have historically been less exposed to geopolitical disruptions — including Suntory and Mitsubishi Chemical — have hired risk executives and created new job roles and dedicated teams in recent months, as they catch up with their counterparts in more politically sensitive sectors.

The move to bolster their risk management capacity comes as investors call on Japanese companies to strengthen their disclosures on their response and readiness for contingencies such as the war in Ukraine, supply chain disruptions caused by the pandemic and increased tensions between the US and China over Taiwan.

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