Under Prime Minister Sanae Takaichi, Japan is reshaping its intelligence system as it faces growing security challenges from China, Russia and North Korea, along with rising concerns over cyberattacks, espionage and the protection of sensitive technologies.

The first major step came on July 31, when Japan launched the National Intelligence Bureau (NIB), its first central intelligence body since World War II.

The bureau was created by upgrading the Cabinet Intelligence and Research Office and is intended to bring together information collected by different government agencies.

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The NIB, headquartered in Tokyo, has an initial workforce of about 730 people and is headed by Director-General Kazuya Hara. Its current role is largely focused on collecting, coordinating, and analysing intelligence and providing assessments to the government.

It does not function as a conventional foreign spy agency that recruits agents and conducts covert operations overseas.

The government is now looking at the next stage of the overhaul.

An expert panel is working on Japan’s first national intelligence strategy and examining possible anti-espionage legislation. The governing coalition has also discussed creating a separate foreign intelligence agency by the end of fiscal 2027.

Such an agency would be closer in function to the CIA in the United States or MI6 in the United Kingdom, with a focus on gathering intelligence overseas. However, the proposal would require further legislation and institutional changes before it could be established.

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Japan’s move comes against a changing security environment in East Asia.

Tokyo has become increasingly concerned about Chinese military activity, North Korean missile and nuclear programmes, Russian activities and threats to critical infrastructure and advanced technologies.

For decades, Japan’s intelligence functions have remained divided among agencies including the Foreign Ministry, Defence Ministry and National Police Agency. The country has also relied heavily on intelligence cooperation with allies, particularly the United States.

The new system is intended to improve coordination between these agencies and strengthen Japan’s ability to assess security threats independently.

The United States, Australia, Britain and other partners have also been involved in discussions on intelligence-sharing, security clearances and institutional standards.

The proposed expansion has also raised concerns within Japan over privacy, government surveillance and the need for strong oversight. Critics have warned that broader intelligence and anti-espionage powers must come with clear legal safeguards.