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

TOKYO – Japan on April 21 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 pacifist restraints that have shaped its post-war security policy.

Wars in Ukraine and the Middle East are also straining US weapons production, expanding opportunities for Japan.

At the same time, US allies in Europe and Asia are looking to diversify supply as Washington’s long-held security commitments look less certain under US 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 social media platform X.

The revision approved by Ms Takaichi’s government removes five export categories that had limited most military exports to rescue, transport, warning, surveillance and minesweeping 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.

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 export rule change, saying in a statement that it will give his country 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 south-western 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, they eased rules for exchanging military supplies.

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

Japan also building up its own military

Japan hopes such 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, the Japan Self-Defence 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 Mr Jeffrey Hornung, an expert on Japanese security policy at 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 neighbouring China to its territory, including around islands along the edge of the East China Sea near Taiwan.

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

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 per cent of gross domestic product, and Ms Takaichi’s government is expected to announce further rises in 2026 when it releases a new security strategy. REUTERS