Japan Wants Its Own CIA-Like Spy Agency. China Is One Big Reason Why

In what is being described as Japan's biggest intelligence overhaul since World War II, the government is building a modern spy network of its own, according to a report by The Washington Post.

24 Jul 2026, 18:58 · NDTV

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Japan is overhauling its intelligence system, building a modern spy network for the first time since WWII
A new national intelligence bureau will coordinate agencies and report directly to the prime minister
Plans include creating a CIA-like agency for overseas espionage and tougher anti-spying laws

How will the new Japanese agency coordinate with the US and Five Eyes?

For decades, Japan has been seen as one of the weakest links among major powers when it came to intelligence gathering. While rivals allegedly stole trade secrets, launched cyberattacks and targeted Japanese institutions, Tokyo largely relied on allies like the United States for critical intelligence.

Now, that is changing. In what is being described as Japan's biggest intelligence overhaul since World War II, the government is building a modern spy network of its own, according to a report by The Washington Post. The ambitious project includes creating a central intelligence bureau, expanding overseas espionage capabilities, strengthening cyber surveillance and introducing tougher anti-spying laws.

The move also signals a dramatic break from decades of post-war caution, when intelligence agencies were viewed with suspicion because of Japan's wartime past.

Why Japan Is Changing Course

The shift comes as Tokyo faces growing security concerns from China, North Korea and Russia, while also dealing with pressure from US President Donald Trump for allies to shoulder more of their own defence responsibilities.

Prime Minister Sanae Takaichi has made strengthening Japan's security one of her biggest priorities. Along with increasing defence spending and lifting restrictions on lethal arms exports, she is now pushing to modernise the country's intelligence system.

"The security environment has become the most severe and the most complex since the end of World War II," said Keitaro Ohno, who heads the ruling party's Intelligence Strategy Headquarters.

"Our objective is to make Japan a safer country."

What The New Spy System Will Do

The first step has already been taken with the creation of a national intelligence bureau that reports directly to the prime minister. The goal is to bring together agencies that have often worked independently instead of coordinating with one another.

But Tokyo's ambitions go much further. Officials want Japan to eventually develop an intelligence agency similar to the CIA that can conduct espionage operations overseas, recruit human sources, intercept communications and crack down more effectively on foreign spies targeting Japanese industries and government institutions.

The government is also looking to make it easier to prosecute suspected espionage cases through new legislation.

Why The Urgency?

Western officials have reportedly urged Japan for years to strengthen its intelligence capabilities.

Countries in the US-led Five Eyes intelligence alliance have long viewed Japan as an important security partner in Asia but one whose intelligence capacity has lagged behind its strategic importance.

"Japan's intelligence capacity has not matched its strategic throw weight," a former US official told the publication, warning that it limits what Japan and its allies can accomplish together.

Another former senior Western intelligence official said Japan could eventually become an important source of intelligence on China and North Korea but cautioned that "they're years away from that."

"This is the beginning of a long process of capacity building and deep cultural change if they are to pull it off," the official added.

China Remains The Biggest Concern

Japanese officials say China's increasingly aggressive intelligence operations have become one of the strongest reasons for the overhaul.

The concerns range from alleged theft of corporate secrets and cyberattacks to espionage targeting advanced technologies such as semiconductors and critical mineral supply chains.

Ken Kotani, a national security and intelligence expert at Nihon University, said Japan often does not even realise when it has been successfully targeted.

"The reality is that Japan is currently unable to grasp even the fact that information has been stolen [through espionage] in most cases," he said.

"We simply don't know."

Former national security adviser Shigeru Kitamura said Japan also needs stronger overseas intelligence capabilities to protect its economic security, especially in sectors involving critical minerals and advanced technology.

Not Everyone Is Convinced

For decades, fears of reviving wartime-style surveillance prevented similar intelligence reforms. While those concerns have weakened amid rising regional tensions, civil liberties groups argue the government risks giving itself excessive powers.

"Simply put, citizens' freedoms would be significantly restricted," Tetsufumi Hirai, a human rights lawyer who opposes the creation of a new intelligence agency, told the publication.

He warned that intelligence operations could fundamentally change Japan's approach to security.

"Intelligence warfare is itself a part of war. So the problem is that Japan is stepping into that realm."

Japan already collects intelligence through its police, military and diplomatic networks, but experts say it lacks a comprehensive system for running overseas spy operations, recruiting human sources or aggressively countering foreign espionage.

If the reforms succeed, they would mark one of the most significant transformations in Japan's national security policy since the end of World War II.

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