Japan is taking steps to build a stronger spy service, a major change for a country that has long kept its intelligence work small and scattered. Prime Minister Sanae Takaichi's government has set up a panel to plan a national intelligence agency, The Japan Times and ABC Australia reported.

Supporters say Japan needs better ways to gather and share secret information as tensions with China rise. Chinese ships and planes operate near Japanese islands almost daily, and North Korea keeps testing missiles. Japan also faces cyberattacks and economic spying, officials say.

Right now, Japan's intelligence work is split among several agencies, including police, the defense ministry and a small cabinet office. Experts say that makes it hard to pull information together quickly. The new agency would be designed to fix that.

Takaichi, Japan's first female prime minister, is known as a defense hawk. She has also pushed for a law against foreign spying, which Japan does not have in the way many countries do.

Not everyone is on board. Civil liberties groups worry that a powerful spy agency could be used to watch citizens or limit free speech. Japan's history shapes that debate. Before and during World War II, secret police cracked down on dissent, and many Japanese remain wary of giving the state too much power.

Japan works closely with the United States on security and hosts tens of thousands of U.S. troops. Allies have long urged Tokyo to tighten how it protects secrets, so that they can share more sensitive information.

Japan and the U.S. plan joint exercises later this month, including Keen Sword drills that may involve anti-ship missiles on Yonaguni, an island near Taiwan.

What we know: Japan is planning a new national intelligence agency under Takaichi.
What we don't: How much power it will have and what oversight will be built in.