Photo/Illutration The Lower House passes a bill to protect critical economic security information during a plenary session on April 9. (Koichi Ueda)

Despite some unanswered questions, the Lower House passed a bill that will require private-sector individuals to undergo government background checks for clearance to access economic security information.

It was approved on April 9 by a majority vote by the ruling coalition of the Liberal Democratic Party and Komeito, as well as opposition parties, including the Constitutional Democratic Party of Japan, Nippon Ishin (Japan Innovation Party) and the Democratic Party for the People.

The multiparty support ensures the legislation will be enacted during the current Diet session.

The security clearance system was introduced under the Law on the Protection of Specially Designated Secrets, which took effect in 2014.

It covers four areas: defense, foreign affairs, counterintelligence and counterterrorism.

The bill would add economic security as a fifth area.

It is expected to subject more people in the private sector, such as company employees, to undergo security clearance background checks.

Under the system, information in economic areas that could affect Japan’s national security would be designated as critical information that must be protected.

Only those who pass the government’s background checks would be able to handle such designated information.

The screening would cover the individuals’ criminal records, drinking habits, debt problems, their family members’ nationalities, among other information.

A leak of designated information would be punishable by up to five years in prison or a maximum fine of 5 million yen ($33,000).

The government has said Japan is the only member of the Group of Seven that has not introduced such a system.

Officials have said the legislation will make it easier for private-sector companies to participate in international joint research and development projects on cutting-edge technologies.

During Diet deliberations, opposition parties questioned the unclear scope of critical information to be protected, the exemption of Cabinet ministers and their deputies from background checks, and other issues.

But they decided to support the bill after revisions were made. The bill now requires the government to annually report to the Diet on the designation of critical economic security information and the implementation status of the security clearance system.

Critics said corporate activities could be restricted if a wide range of information is designated for protection, and that company employees who refuse background checks could face disadvantages in personnel changes.

When the Diet voted on the Law on the Protection of Specially Designated Secrets in 2013, the Democratic Party of Japan (DPJ), the largest opposition party at the time, opposed.

The CDP, the current main opposition party that includes many former DPJ lawmakers, decided to support the latest bill partly in response to the changing international situation.

U.S.-China tensions in recent years have made it necessary for the United States, Japan and Europe to enhance security of vital economic information.

In addition, the CDP wants to shed its image as a party that simply opposes all government policies and impress voters as being capable of taking over the reins of government.

The Japanese Communist Party and Reiwa Shinsengumi voted against the bill.

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