The cabinet of Japan sanctioned a bill to support companies to build a secure mobile network on 5G as well as endorse drone technologies. The bill comes at the time when there is an increasing concern amongst the policymakers of Tokyo for China’s growing 5G technology influence.
The bill is to authorize companies that create such technologies to access loans at low-interest rates from the financial institutions associated with the government. This would be done only if their strategies would fulfill the cybersecurity standards.
The bill will also inculcate measures in order to support drone manufacturers of Japan. As per the data, Chinese companies hold a 70% stake in the drone market worldwide.
The bill is to be submitted to the parliaments and will be executed around summer. There have been reports of a campaign by the United States against the Huawei Technologies Co HWT.UL. Washington that informed that it could pry on customers for Beijing.
While Huawei has consistently refused the claims made in this regard, the United States along with certain allies like Australia, are shutting Huawei from the plans of 5G rollout. Other countries like Britain have permitted it to have a restricted role.
Earlier in December, Japan revealed some tax measures intended to encourage firms to shell their bucks on investments, start-ups, and other resources to kick off a sluggish economy. This would have also helped firms to fight with advanced 5G technology of China.
The 5G wireless technology that fosters networks with fast and high-capacitance are believed to have a crucial role in a number of areas such as video distribution, industrial robot control, autonomous driving, etc.
Companies that choose 5G technologies would receive tax incentives in case they are eligible and meet all the set standards by government, says the bill. According to the bill, companies investing in 5G technology will receive a tax break of 15 percent in case they are authorized by the government and have risks pertaining to security.
The government is to compile guidelines that need firms to initiate security measures that prevent hacking as well as data leaks. It will also make sure that a stable stream of sensitive data and components is maintained even in cases of disasters.