Japan opens door to global arms market with overhaul of defence export rules

Japan on Tuesday unveiled its biggest overhaul of defence export rules in decades, scrapping restrictions on overseas arms sales and opening the way for exports of warships, missiles and other weapons.

The move aimed at strengthening Japan's defence industrial base marks another step away from the pacifist restraints that have shaped its postwar security policy.

Wars in Ukraine and the Middle East are also straining U.S. weapons production, expanding opportunities for Japan. At the same time, U.S. allies in Europe and Asia are looking to diversify suppliers as Washington's long-held security commitments look less certain under President Donald Trump.

"No single country can now protect its own peace and security alone, and partner countries that support each other in terms of defence equipment are necessary," Japanese Prime Minister Sanae Takaichi said in a post on X.

The revision approved by Takaichi's government removes five export categories that had limited most military exports to rescue, transport, warning, surveillance and mine-sweeping equipment. Ministers and officials will instead assess the merits of each proposed sale.

Japan will keep in place three export principles that commit it to strict screening, controls on transfers to third countries and a ban on sales to countries involved in conflict. But in a presentation outlining the changes, the government said exceptions could be made when deemed necessary for national security.

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Philippines welcomes shift

Japanese officials and diplomats have told Reuters that countries ranging from Poland to the Philippines are exploring procurement opportunities as they modernise their forces. One of the first deals could be the export of used warships to Manila, two of the sources said.

Philippine Defence Secretary Gilberto Teodoro welcomed Japan's rule change, saying in a statement that it would provide access to defence "articles of the highest quality" that would "strengthen domestic resilience" and "contribute to regional stability through deterrence."

The Philippines, together with Japan's southwestern island chain, forms part of what military planners call the First Island Chain, a string of islands that hems in China's access from its coastal waters to the Western Pacific.

As Beijing's regional influence grows, Manila and Tokyo have deepened security ties. In September they signed an agreement making it easier for their forces to operate in each other's territory and in January eased rules for exchanging military supplies.

"This historic step will not only enhance the defense capabilities of countries collaborating with the Japan-U.S. alliance but also strengthen our collective capacity to maintain peace throughout the region and safeguard freedom even further," George Glass, the U.S. Ambassador to Japan, said on X.

Japan also building up its own military

Tokyo hopes defence exports will shore up its industrial base by boosting production volumes, lowering per-unit costs and adding manufacturing capacity it could draw on in a military crisis.

Contractors such as Mitsubishi Heavy Industries can build advanced systems including submarines, fighter aircraft and missiles, but for decades have depended on small orders from a single customer, Japan's Self-Defense Forces.

"It has driven up costs and inefficiencies. By expanding the markets, they hope to benefit from economies of scale and pump some new life into Japan’s industrial base, especially with many of the smaller companies," said Jeffrey Hornung, an expert on Japanese security policy at the RAND Corporation.

Japan is pressing ahead with unprecedented efforts to bolster its military - buying missiles, stealth jets and drones it says are needed to deter any threat posed by China, including around its islands near Taiwan.

Beijing has said its intentions in East Asia and elsewhere are peaceful.

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Tokyo is also developing a next-generation fighter jet with Britain and Italy for deployment in the mid-2030s, part of a strategy to share development costs and gain access to new technology.

Japan has steadily increased defence spending in recent years to 2% of GDP, and Takaichi's government is expected to announce further rises this year when it releases a new security strategy.

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News Politics Japan global arms market Weapons defence export Trade