Japan eyes direct role in arms deals, plans dedicated export support body

Japan is moving to actively facilitate its defense industry's growth and international sales, signaling a significant shift in its post-war stance on arms exports. The government is reportedly planning to create a new organization, likely an independent administrative body, to support the export of defense equipment. This initiative aims to foster a public-private cooperation framework to nurture domestic defense companies, especially those leveraging new technologies like artificial intelligence and drones.

The push comes amid a growing sense of urgency within Japan's ruling party and defense establishment. Recent conflicts, such as the war in Ukraine and the conflict involving Iran, have highlighted the increasing role of AI and unmanned aerial vehicles in modern warfare. Japanese officials fear their country's defense technology may be lagging behind in this rapidly evolving landscape. The new organization could also explore nationalizing arms production facilities to boost domestic capacity for ammunition and missiles.

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The government is coordinating to establish a new organization to support defense equipment exports.

Currently, the Ministry of Defense and the Ministry of Economy, Trade and Industry share responsibilities for supporting the defense industry. However, a lack of specialized personnel and bureaucratic silos have been identified as challenges. The ruling Liberal Democratic Party has called for "unprecedented system reforms" to revitalize the sector. This includes a push for rapid development of AI-based command and control systems and swift adoption of various drones to counter adversaries like China.

Japan has already eased its strict export controls on lethal weapons with the revision of its 'Three Principles on Transfer of Defense Equipment' in April. This has paved the way for potential sales of military hardware, such as the Mogami-class frigates, to countries like the Philippines, Australia, and New Zealand. The potential adoption of a Japanese version of the U.S. FMS system would see the government directly mediating arms deals, providing support from contract signing to product delivery, thereby maximizing transaction opportunities and strengthening military cooperation with buyer nations.

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We must rapidly develop AI-based command and control systems and swiftly introduce various drones.