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CNBC
6 days ago
- Business
- CNBC
Why a pacifist Japan seems to be doubling down on arms exports
Japan, renowned for its pacifist constitution, is now setting its sights on the global arms exports market. Defense Minister Gen Nakatani earlier this month told Nikkei that he wanted to promote Japan's defense exports, signaling a clear shift in the country's arms policy, which has so far been largely restricted to catering to the Japan Self-Defense Forces, or JSDF. Prime Minister Shigeru Ishiba has also signaled sharper focus on the defense sector and became the first sitting prime minister to attend DSEI Japan, the country's largest defense exhibition. While the shift in stance comes at a time when global defense spending has been on the rise, Japan's motivations are linked more to its security concerns than profiting from the surge in global arms demand, experts told CNBC. The biggest reason behind this shift is to deepen ties and increase interoperability of Japanese forces with allies and partners, said Rintaro Inoue, research associate at the Institute of Geoeconomics, a Tokyo-based think tank. By exporting its arms abroad, a country is able to improve interoperability with the purchasing parties by standardizing maintenance processes for hardware and creating joint training opportunities. "This rationale has been the main pillar after Prime Minister [Shinzo] Abe created the concept of 'proactive contribution to peace' in 2013 which aims to deepen cooperation with other Western countries in this area, and especially in security fields," he said. When the late Abe was in office, he led efforts to revise the interpretation of Article 9 of Japan's constitution to allow the JSDF to more actively contribute to international peacekeeping efforts and defend allies. Japan also wants to develop its defense industrial base, which had been in "very poor conditions" before the country moved to increase its defense budget in 2022, Inoue said. Exports will allow it to achieve the economies of scale needed to make domestic production more viable. Instead of investing in Japan's domestic defense base, the country has largely purchased weapons from the U.S., such as the F-35 fighter jets and SPY-7 radar systems. "This created a severe situation among the defense industry based in Japan, and several companies have left the industry, especially in the supply chain," Inoue said. In 2023, more than 100 companies were reported to have left the defense industry in the past 20 years. Naoko Aoki, political scientist at U.S.-based policy think tank RAND, said that Japanese defense firms have traditionally operated with limited domestic demand from the JSDF. Being able to export defense items means that companies would have a bigger customer base, helping them develop production capacities, lower costs and have more flexibility. "Even if the JSDF needed more of, for example munitions, these companies would not be eager to invest in new facilities to produce more of them, if they think that is a one-time request. If there were more stable demand at a higher level, however, they can justify the investment," Aoki said. As of 2024, Japan's arms exports stood at 21 million TIV — just 0.1% of global arms exports — according to the Stockholm International Peace Research Institute. The TIV or trend-indicator value is a measure of the volume of international transfers of major conventional weapons. In comparison, neighboring South Korea exported 936 million TIV in 2024, with 3.3% of global arms exports, while TIV for China, the largest Asian arms exporter from 2020-2024 stood at 1.13 billion, accounting for 3.9% of global shipments. Defense is attractive as a growth sector, according to veteran investor David Roche, strategist at Quantum Strategy. "Demand will exceed supply for a decade,he said. So, building domestic capacity is of paramount importance. Roche said that if nations such as Japan stay dependent on the U.S., the Trump administration's more transactional approach will oblige them to pay for much more of their own defense, or defense equipment supplied by the pointed to U.S. Defense Secretary Pete Hegseth's speech during the 2025 Shangri-La Dialogue, earlier this month: "We ask — and indeed, we insist — that our allies and partners do their part on defense ... NATO members are pledging to spend 5% of their GDP on defense, even Germany." "So it doesn't make sense for countries in Europe to do that while key allies in Asia spend less on defense in the face of an even more formidable threat, not to mention North Korea," Hegseth added. "If they distrust the U.S. to honor its treaty engagements, then individual nations must ensure their own security and spend a lot of money doing so," Roche said. Japan in 1967 adopted "Three Principles on Arms Exports" that restricted arms exports, and later expanded those principles to a practically impose an across-the-board ban on arms exports, except for transfers of military technologies to the U.S. The country relaxed this stance under Abe, with former Prime Minister Fumio Kishida easing the curbs further in 2023. The most recent changes allow defense equipment manufactured in Japan under license from foreign defense firms, including finished products, to be exported to the licensing country and from there to third countries. For example, Japan agreed in late 2023 to manufacture — under license — and export Patriot interceptor missiles to the U.S., whose stockpiles were depleted after supplying these missiles to Ukraine. Neighbor South Korea has seen increasing global interest in its arms industry and is striving to become a major global arms supplier. Will Japan be able to compete? Experts says that Japan has the knowledge, skills and technology to be a major arms supplier, but IOG's Inoue warns that Japan may face manufacturing issues due to its falling population and growing proportion of seniors. "I think it's very difficult for Japan to once again focus into manufacturing jobs," he said. RAND's Aoki pointed to still-strict regulations. "Japan has the technical capacity to do many things," but as export regulations remain severe, it will use exports mainly as a tool to strengthen its defense industrial base and defense relations with like-minded countries, particularly the U.S.
Kyodo News
11-06-2025
- Politics
- Kyodo News
China fighter jet has near miss with SDF patrol plane: Japan gov't
KYODO NEWS - 15 minutes ago - 23:59 | Japan, World, All A Chinese military aircraft had a near miss with a Japan Self-Defense Forces patrol plane over the high seas in the Pacific, flying just 45 meters away after taking off from a moving aircraft carrier, the Japanese Defense Ministry said Wednesday. The warplane from the aircraft carrier Shandong also made other dangerous maneuvers, such as flying across the front of the SDF aircraft, on Saturday and Sunday, the ministry said, adding that the government lodged a protest with China and demanded an end to such flights. Related coverage: Japan sees 1st simultaneous operations by China carriers in Pacific Chinese carrier sails near Japan's easternmost island for 1st time
Nikkei Asia
22-05-2025
- Business
- Nikkei Asia
Japan's Fujitsu to supply Lockheed Martin with radar components
TOKYO -- Japanese tech company Fujitsu will make core power supply components for Lockheed Martin's SPY7 radar system, the companies announced Thursday, in a move to help expand Japan's defense industry. The SPY7 system, which contains over 1,200 power supply components, will be installed in a Japan Self-Defense Forces Aegis-equipped vessel in 2027 and another in 2028. The initial systems will contain Lockheed-made power supply components, with replacements parts to be made by Fujitsu.
Yomiuri Shimbun
06-05-2025
- Politics
- Yomiuri Shimbun
Japan, India Agree to Boost Defense Cooperation;Defense Ministers Nakatani, Singh Meet in New Delhi
Takanori Nakada/The Yomiuri Shimbun Defense Minister Gen Nakatani, right, and Indian Defense Minister Rajnath Singh shake hands ahead of their bilateral meeting in New Delhi on Monday. NEW DELHI — Japanese Defense Minister Gen Nakatani and Indian Defense Minister Rajnath Singh have agreed in New Delhi to enhance defense cooperation between Japan and India during Nakatani's visit to the Indian capital. In a roughly 90-minute discussion on Monday, the two ministers, who concurred on enhancing defense collaboration in the Indo-Pacific region, also agreed to work toward establishing a consultation body between their respective defense authorities for the coordination and management of this cooperation. During the meeting, Nakatani said, in light of China's growing assertiveness, that 'given our shared principles of pursuing a peaceful and prosperous Indo-Pacific based on the rule of law, it is increasingly important for both countries to cooperate and strengthen their coordination.' Singh underscored the need to promote military cooperation in the face of emerging challenges to the global order. As concrete defense cooperation, they agreed to enhance bilateral joint exercises and to collaborate on the protection of maritime traffic, including anti-piracy measures, with the aim of ensuring the security of sea-lanes. This envisioned consultation body will be responsible for adjusting and managing coordination between the respective defense authorities. It is anticipated that it will be overseen by an official from the Joint Staff of the Japan Self-Defense Forces at the vice chief or department head level. Nakatani's call for stronger security cooperation at the defense ministerial meeting stems from the critical need to collaborate with India to counter China's growing presence in the Indo-Pacific. 'The situation surrounding Japan and India is rapidly growing more complex and uncertain,' Nakatani urgently stated during the meeting, emphasizing the necessity for both countries to join forces. Singh echoed this sentiment, expressing his confidence that the cooperative relationship between Japan and India would reach unprecedented levels. Both Japan and India face similar threats from China. Specifically, Chinese government vessels have repeatedly intruded into Japanese territorial waters surrounding the Senkaku Islands, and a Chinese Coast Guard helicopter violated Japanese airspace near those islands on Saturday. In the Indian Ocean, China has been sending marine research vessels, creating new friction with India, which has ongoing border disputes with China. During the meeting, Nakatani reiterated that Japan-India security cooperation should be deepened as 'Japan-India defense cooperation in the Indo-Pacific region.' While advancing cooperation with India within the Quad framework, which includes the United States and Australia, Japan also aims to simultaneously strengthen bilateral ties with India based on shared values and principles. Singh welcomed this and stated his desire to discuss the specifics in detail. Cooperation between Japan and India, such as information sharing, is expected to advance toward ensuring the security of sea-lanes. 'If India can deter China on the opposite side of the Indo-Pacific, it will also contribute to Japan's security,' a senior Defense Ministry official said. Yet, India also maintains a nonaligned foreign policy, avoiding alignment with any particular camp, and it is a member of the BRICS group of emerging economies, which includes China. Japan aims to draw India closer by building a strong track record in defense equipment and technology cooperation. At this meeting, both sides agreed that Japan would consider exporting aircraft and tank engines, among other items.
Japan Forward
01-05-2025
- Politics
- Japan Forward
Strengthen Defenses Off Hokkaido Against Russia's Intimidation
Even as it continues its invasion of Ukraine, Russia is also stepping up its military activities around the Northern Territories. The group of islands is located off the northeast coast of Hokkaido. On April 16, Russia issued a navigation warning announcing that it would suspend the right of innocent passage for ships from various countries in waters east of Hokkaido, which includes the Northern Territories, until the end of April. Russia later announced that its military would be conducting live fire exercises in roughly the same area from April 17 to April 24. Both acts constituted lawless behavior that violated Japan's sovereignty, as the Northern Territories are inherently part of Japanese territory. It was only natural that Chief Cabinet Secretary Yoshimasa Hayashi protested, "Russia's military buildup in the Northern Territories is contrary to our country's position and is unacceptable." The area designated by Russia for the live fire exercises is just a stone's throw from Hokkaido. It encompasses the waters surrounding three of the four islands of the Northern Territories, namely Kunashiri, Shikotan, and the Habomai islets. A defense ministry official says, "We haven't seen such a wide-ranging exercise announced in such close proximity to Japan in recent years." Russia has not published details about the live fire exercises. However, on April 19, Fuji TV aired footage showing a large ship that appeared to be a Ropucha -class large landing ship capable of landing tanks, anchored in front of Kunashiri. Meanwhile, Vladimir Putin's regime also redeployed ground forces that had been stationed in the Northern Territories to fight in Ukraine. Experts believe that Russia intends to use the current exercises to demonstrate that its naval power is still strong. The Northern Territories On April 17, Russia protested the missile launch drills scheduled to be conducted by the Japan Self-Defense Forces in Hokkaido in June 2025, labeling them a "provocative military plan." The Kremlin appears to be using the JSDF training exercise as a pretext for holding its own live-fire drills — without any legitimate justification. The UN Convention on the Law of the Sea recognizes the right of innocent passage through the territorial waters of other countries, provided it does not threaten the security of the coastal state through armed attack or intimidation. While a coastal state may temporarily suspend innocent passage if deemed essential to its national security, this does not apply in Russia's case. Russia's suspension of innocent passage is therefore unjustified. Its intent is to conduct live-fire exercises in territory that inherently belongs to Japan but has been illegally occupied by Russia. Russia also conducted live-fire exercises for about a month in the waters off Shikotan Island, starting in January 2025. Additionally, it held military drills in the Northern Territories during a memorial service at sea for former residents of the Habomai Islands in September 2024. Similar exercises were also conducted during the US presidential election in November 2024. Furthermore, Russia has carried out a series of joint naval and air exercises with China in the vicinity of Japan. May 9 marks the 80th anniversary of the defeat of Nazi Germany. There is concern that Russia may use that occasion to join with China to attempt military intimidation of Japan. Prime Minister Shigeru Ishiba and other Japanese leaders must step up their vigilance and strengthen Japan's northern defenses. (Read the editorial in Japanese .) Author: Editorial Board, The Sankei Shimbun
