What is Japan’s new intelligence agency, and why is Tokyo building it?

SaveSharefacebookxwhatsapp-strokecopylinkMajor policies of Prime Minister Sanae Takaichi include building up Japan's defence and intelligence capabilities [File: Kim Kyung-Hoon/Reuters]By Marthe van der WolfPublished On 13 Jul 202613 Jul 2026Japan is setting up its first centralised intelligence agency since World War II to try to modernise its defence capabilities against spies, foreign interference and other attacks from foreign adversaries.Legislation to establish the new agency passed the upper house of Japan’s National Diet in May, a month after it cleared the lower house.After decades of relying on US intelligence support and after a pacifist stance was enshrined in the Japanese Constitution, Prime Minister Sanae Takaichi described this law as “a first step” towards strengthening the country’s espionage capabilities.What is this new agency?The legislation creates two bodies: a National Intelligence Council that will act as the government’s command centre for intelligence gathering and analysis and an agency for operations. The reform changes the existing Cabinet Intelligence and Research Office (CIRO) into a centralised National Intelligence Council and National Intelligence Bureau.Takaichi isn’t exactly building the US Central Intelligence Agency, but The New York Times reported Western allies, including the United States, Germany and Australia, are advising the Japanese government on establishing the new spy agency.Ken Kotani, professor at Nihon University, said he believes Japan’s new National Intelligence Council and national intelligence agency model will be original to Japan.Sanshiro Hosaka, a research fellow at the Estonia-based International Centre for Defence and Security, said the reform is aimed at improving the Japanese government’s intelligence abilities “by strengthening coordination, reducing interagency barriers and ensuring that intelligence products better meet policymakers’ requirements”.Why does Japan want it now?Tokyo says it is facing threats from a number of nearby countries such as North Korea, Russia and China, and a national intelligence agency is needed to counter their efforts.Kotani explained that Japan’s foreign and national security policy followed the US during the Cold War period. But he noted that “recently Japan has gradually pursued her own policy, especially in the Trump administration period.”US President Donald Trump has repeatedly accused Washington’s allies of not spending enough on their own defence and on relying on American help. He has questioned US alliances and has been ambivalent about whether the world’s most powerful military would come to the defence of smaller nations.That, Kotani said, is why “Japan needs to collect intelligence by herself.”Japan currently lacks an antiespionage law that would make it relatively easy for foreign intelligence activities to go unpunished.Hosaka explained that former Russian intelligence officers who operated in Japan, such as Stanislav Levchenko and Konstantin Preobrazhensky, described Japan as a paradise for spies: “During the Cold War, Soviet intelligence targeted Japanese technologies, industrial and commercial information as well as the US bases in Japan,” Hosaka explained. “As a major US ally in Asia and an advanced technological economy, Japan remains an important intelligence target for China, Russia, North Korea and others.”Hosaka said what Japan needs “is a foreign-influence transparency law to increase the transparency of foreign actors’ lobbying activities as well as to deter illegal foreign interference. And an antiespionage law to conduct undercover operations and investigations using assumed identities.”Why the current system isn’t working:A major obstacle within Japan’s current decentralised structure, experts said, is that no one has the authority to force cooperation from other agencies or bodies or prevent intelligence data from being scattered.Kotani explained that the political power of Japan’s current intelligence agency has been weak: “This was because the CIRO was not given any legal mandates on intelligence when it was established in 1952.”Another difficulty is that under current Japanese laws, foreign representatives suspected of potential intelligence affiliations or interference are difficult to intercept because legal grounds are weak for Japanese authorities to intercept their communications or prosecute them.The ambitions of PM TakaichiTakaichi took office in October and has accelerated the expansion of Japan’s military and security ambitions through a number of measures, including establishing a central intelligence body.In December, the cabinet approved its largest defence budget ever at $58bn as the Ministry of Defence said it needed to accelerate its “transformation” and would use more than $600m for building a so-called drone and laser shield to protect its southwestern region.In April, Takaichi’s cabinet moved closer to abolishing a longstanding ban on the export of lethal weapons, such as tanks and warships.The new direction led to antiwar protests in the streets of Japan in May. However, a Jiji opinion poll in April showed only 19 percent were opposed to the new bill to reform intelligence within the country. About 40 percent were indifferent, and the rest were in favour.Kotani said he has noticed a lot of the old “taboo has gone” around this subject and it is no longer a topic of concern to many Japanese, He said: “Especially younger generations are not interested in such an old story.”Why surveillance is controversial in JapanJapan’s defeat in World War II left its citizens with distrust towards state surveillance as the wartime Special Higher Police, known as the Tokko, monitored, arrested and tortured citizens for their political beliefs.Article 9 in its constitution, drafted in 1947 shortly after the end of the war, renounced war, and Japan has never had its own foreign intelligence service. Instead, it relied on the US.The efforts for a new security agency have sparked some domestic criticism, but Hosaka said the latest reforms do not amount to a return to the kind of espionage apparatus that could be used against Japanese civilians.“The legislation does not itself create significant new intelligence collection or counterintelligence powers,” Hosaka said.