Japan to map out defense export strategy within 2025

Tokyo — Japan plans to map out a strategy within 2025 to boost defense equipment exports by enhancing the international competitiveness of its defense industry.

The government aims to strengthen the industry’s foundation by helping expand its market reach, hoping to accelerate related efforts in cooperation with the private sector as U.S. President-elect Donald Trump is set to return to power soon with his “America First” policy.

The strategy, which will present medium- and long-term targets for defense equipment exports, will be worked out through cooperation among government agencies including the defense and trade ministries. Opinions of the industry will be reflected in the strategy.

The government expects that the strategy would be revised every five years.

Japan’s defense industry relies almost entirely on demand from the Self-Defense Forces. Many manufacturers have quit defense business due to low profit margins.

In its 2022 Defense Buildup Program, the government said that boosting defense equipment exports is “also effective in ensuring the growth of the defense industry through the expansion of defense equipment market.”

A key project in this area is the joint development of a next-generation fighter jet with Britain and Italy.

In March last year, Japan revised the implementation guidelines for its three principles on the transfer of defense equipment and technology so that it will be able to export the aircraft to third countries.

The government’s draft budget for fiscal 2025 includes 108.7 billion yen in development costs for the fighter.

Japan competes with Germany for a joint development contract for new frigates for the Australian navy. To win the deal, Japan set up a public-private committee to push Mogami-class destroyers.

Some government officials worry that Trump’s return to power could disrupt efforts to foster the defense industry, given that he pressed Japan to buy U.S. equipment during his first term.

“He may impose various demands,” a Defense Ministry official said.

Besides Japan, many countries are developing national strategies to bolster their defense industries amid Russia’s prolonged war in Ukraine.