Japan has announced plans to create a detailed strategy by 2025 to expand its defense equipment exports and enhance the global competitiveness of its defense industry. The initiative reflects Japan’s growing focus on strengthening its defense sector amidst rising global security challenges and changing geopolitical dynamics.
Aiming for a Stronger Defense Industry
Japan’s defense industry has long relied on domestic demand from the Self-Defense Forces (SDF). However, low profit margins have led many manufacturers to exit the sector. To address this, the government intends to expand the industry’s market reach internationally. By collaborating with private companies, the government hopes to create opportunities for defense manufacturers to thrive in global markets.
The proposed strategy will include medium- and long-term targets for defense exports. It aims to establish a roadmap for sustainable growth in the industry. The strategy will be revised every five years to adapt to changing circumstances.
Coordinated Efforts Across Ministries
The development of this strategy will involve collaboration among multiple government agencies, including the Ministry of Defense and the Ministry of Trade. These agencies will also work closely with private companies to gather their input and ensure the plan addresses their challenges.
Japan’s government views boosting defense exports as a means to strengthen the industry while supporting national security goals. The effort is also seen as a way to enhance Japan’s role in global defense cooperation.
Key Projects Driving Growth
One flagship initiative is the joint development of a next-generation fighter jet with Britain and Italy. This project is expected to deliver cutting-edge technology while providing a model for international defense collaboration. The government has allocated ¥108.7 billion in its 2025 draft budget to support this program.
Japan is also competing with Germany for a contract to develop new frigates for the Australian navy. To secure the deal, Japan has formed a public-private committee to promote the capabilities of its Mogami-class destroyers, a vital asset in its naval defense lineup.
Revised Export Guidelines
In March 2024, Japan updated its guidelines for transferring defense equipment and technology. These changes allow for the export of jointly developed equipment, such as the fighter jet, to third countries. The updated policies aim to make Japanese defense exports more attractive and accessible to international buyers.
Challenges Ahead
Despite these efforts, challenges remain. Japan faces tough competition from other nations bolstering their defense industries. Countries like Germany and South Korea are investing heavily in defense technology, driven in part by Russia’s ongoing war in Ukraine.
The return of Donald Trump as U.S. president could add further complications. During his first term, Trump pressured Japan to purchase American defense equipment. Japanese officials fear that similar demands could disrupt their current efforts to strengthen the domestic defense industry.
Global Context
Japan’s push to expand defense exports aligns with a global trend of nations prioritising military self-sufficiency and collaboration. Governments worldwide are revising their defense policies and investing in technology to address security concerns.
A Vision for the Future
Japan’s strategy to boost defense exports represents a significant step in modernising its defense sector. By fostering collaboration between public and private stakeholders, the government aims to create a more resilient and competitive industry.
Through international partnerships and innovative projects, Japan is positioning itself as a key player in the global defense market. If successful, this initiative will not only benefit the country’s economy but also strengthen its role in maintaining regional and global security.