Japan is building a powerful new spy agency after 80 years. But why now?

Japan has approved the creation of a new central intelligence agency as part of what is being described as the country's biggest national security overhaul since the end of World War II.

Prime Minister Sanae Takaichi's government has established the National Intelligence Bureau (NIB), a new organisation that will bring together intelligence functions previously spread across multiple government departments.

The bureau, which is expected to have around 700 employees, is designed to strengthen Japan's intelligence-gathering capabilities amid growing security concerns in the Indo-Pacific.

According to officials, Japan has also consulted intelligence agencies and security experts from the United States, Australia and Germany while developing the new organisation.

Why is Japan making the change?

For decades after World War II, Japan maintained a fragmented intelligence system as part of its post-war pacifist approach. Intelligence responsibilities were divided among the foreign ministry, police, defence agencies and other government bodies, with no single organisation overseeing foreign intelligence.

More from World

The government now says the changing security environment has made a more coordinated approach necessary.

Officials point to growing regional tensions involving China, North Korea and Russia, as well as the increasing use of cyberattacks, disinformation campaigns and other forms of hybrid warfare.

Japanese authorities have also expressed concern about foreign influence operations, including the spread of misinformation through websites and online platforms targeting Japanese audiences.

A centralised intelligence structure

The new National Intelligence Bureau will coordinate intelligence collection and analysis across government agencies and report to a newly created National Intelligence Council, which will be chaired by the prime minister.

The move is intended to improve information sharing between ministries and provide the government with a more complete picture of national security threats.

Security experts have long argued that Japan's existing intelligence structure made it difficult for agencies to exchange information quickly during crises.

Focus on economic security

The reforms also reflect growing concerns over economic security.

Japan is home to several industries considered strategically important, including semiconductor manufacturing, robotics and advanced technology.

Officials have warned that these sectors have increasingly become targets for industrial espionage and attempts to acquire sensitive technologies.

Alongside the intelligence reforms, the government has introduced stricter rules on foreign investment, giving authorities greater powers to review investments involving sensitive industries and critical technologies.

More reforms expected

The creation of the National Intelligence Bureau is expected to be the first step in a broader overhaul of Japan's national security framework.

The government is also considering legislation to strengthen anti-espionage laws and expand the country's intelligence capabilities, including overseas intelligence gathering.

The reforms mark a significant shift for Japan, which has traditionally maintained a limited intelligence structure in the decades following World War II.