Japan's Cabinet has approved a bill to support domestic firms investing in 5G communication networks and drones. Commercial 5G services are scheduled to start in Japan this spring.
The approval came at a Cabinet meeting on Tuesday.
The fifth-generation wireless technology for fast, high-capacity digital networks are expected to play a major role in various areas including video distribution, autonomous driving, and industrial robot control.
The bill says companies that invest in 5G infrastructure will get a 15 percent tax break if they are certified by the government as having no security risks.
The government will compile guidelines requiring the companies to take security measures against hacking and data leaks, and to ensure stable supply of components even if a disaster occurs.
The government aims to boost the capabilities of Japanese firms in order to compete with Chinese rivals, which are leading the global race for patents and installations of 5G base stations.
The bill also includes measures to support Japanese drone manufacturers. Chinese firms have a 70 percent share of the global drone market.
The government aims to pass the bill during the current Diet session.