25/04/2026
While Japanese firms are recognized for advanced technology - particularly in submarine and naval construction - they have less experience in mass production and post-sale support compared to competitors.
Japan's defense industry is poised for rapid expansion after the government lifted key restrictions on arms exports, but analysts say structural challenges could shape its ability to compete with established exporters such as South Korea.
Government of Japan on Monday removed the so-called "five categories" rule, a core element of its long-standing restrictions on defense equipment transfers. The move significantly broadens the scope for exporting finished military systems, which had previously been limited largely to non-combat purposes.
Japan's defense industry is poised for rapid expansion after lifted restriction, but structural challenges could shape its ability to compete.
