Latest news with #DSEIJapan
CNBC
17-06-2025
- 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.
Nikkei Asia
06-06-2025
- Automotive
- Nikkei Asia
Drone wars put Japan's Kawasaki Motors, Subaru in spotlight
CHIBA, Japan -- In the DSEI Japan defense equipment show last month, motorcycle maker Kawasaki Motors and carmaker Subaru occupied prominent positions near the entrance, showcasing their key exhibits: drones. Kawasaki, in collaboration with French startup VoltAero, is developing twin- and single-engine drones that can fly up to 2,700 kilometers at speeds of up to 600 kilometers per hour with a maximum payload of 500 kilograms.
Nikkei Asia
06-06-2025
- Automotive
- Nikkei Asia
Drone wars put Japan's Kawasaki Motors, Subaru under spotlight
CHIBA, Japan -- In the DSEI Japan defense equipment show last month, motorcycle maker Kawasaki Motors and carmaker Subaru occupied prominent positions near the entrance, showcasing their key exhibits -- drones and unmanned aerial vehicles (UAVs). Kawasaki, in collaboration with French startup VoltAero, is developing twin- and single-engine drones that can fly up to 2,700 kilometers at speeds of up to 600 kilometers per hour with a maximum payload of 500 kilograms.
Japan Forward
28-05-2025
- Business
- Japan Forward
DSEI Japan: Showcasing Innovation Amid Rising Threats
DSEI Japan, the country's largest defense trade exhibition, was held at Makuhari Messe in Chiba from May 21 to 23. Originally launched in the United Kingdom, the event has taken place in Japan biannually since 2021, making this its third running. The 2025 event was the largest to date, featuring 471 exhibitors from 33 countries. Japanese companies comprised roughly 40% of all participants, reflecting the nation's growing interest in the defense industry. On May 22, Prime Minister Shigeru Ishiba became the first sitting Japanese leader to attend the exhibition. He delivered a speech stressing his commitment to defense equipment collaboration with allies and partner nations. "Advancing collaboration in equipment transfer, joint development, and joint production is crucial for promoting peace and stability in Japan and the region," he said. Ishiba highlighted China's "unilateral attempts to change the status quo" in the East and South China Seas, North Korea's ballistic missile launches, and expanding military cooperation between Russia and North Korea. "The security environment is becoming increasingly severe," he said. Kawasaki Heavy Industries' unmanned helicopter can carry 200 kg of cargo. (©Hidemitsu Kaito) Ishiba added, "Equipment cooperation will help strengthen deterrence not only for our country but also for our allies and partners." The Prime Minister also mentioned the significance of Japan, the UK, and Italy collaborating on the next-generation fighter jet, the Global Combat Air Programme (GCAP). "This will lay the foundation for broad coordination with the UK and Italy for generations to come," he said. After his speech, Ishiba toured the venue, observing the latest defense technology. The exhibition featured cutting-edge technologies, including gears, small arms, large ships, unmanned vehicles, and cybersecurity systems. Japan's Ministry of Defense drew particular attention with its "railgun" (electromagnetic cannon) designed to intercept hypersonic missiles. Japan's Ministry of Defense unveils "rail gun" at the DSEI exhibit (left) on May 21. (©Hidemitsu Kaito) Rising geopolitical tensions are boosting demand for unmanned aircraft and automated, labor-saving technologies. They are also accelerating innovation to enhance soldier safety. Sweden's SAAB showcased a training system for anti-tank recoilless rifles. Meanwhile, Turkish firm OTOKAR displayed an armored vehicle designed for countering anti-tank mines. A Ukrainian company unveiled a drone-based precision strike system, gaining attention for its technology honed through real combat experience. SAAB showcases a training system for firing anti-tank recoilless rifles. (©Hidemitsu Kaito) On May 21, United States Ambassador to Japan George Glass attended the opening ceremony at the US Pavilion. In his remarks, the ambassador emphasized the need for regional stability and stronger deterrence."Coordination among allies in the Indo-Pacific, joint development, and joint production are essential. Collaboration between American and Japanese defense industries is indispensable," he said. Ambassador George Glass speaks at the opening ceremony of the US Pavilion. (©Hidemitsu Kaito) Kawasaki Heavy Industries presented an unmanned helicopter capable of carrying up to 200 kilograms of supplies for potential use in island defense. Meanwhile, Rakuten Group emphasized its support for Ukrainian startups through partnerships with Ukrainian government agencies. The Rakuten and Ukrainian agencies' booth showcases support for startups. (©Hidemitsu Kaito) Defense Minister Gen Nakatani tours the exhibition on May 21. (©Hidemitsu Kaito) Defense Minister Gen Nakatani, who toured the venue on the first day, said, "The number of enlistments in the Self-Defense Forces (SDF) is declining, making the introduction of drones and labor-saving equipment essential." The SDF has a capacity of around 247,000 personnel, but is projected to face a shortfall of 23,000 by the end of 2024. Japan's defense system continues to evolve. The FY2025 defense budget is set at ¥8.4748 trillion JPY ($58.8 billion USD). This level represents a 9.7% increase from the previous year and reaches 1.8% of GDP. In 2020, the Air Self-Defense Force established a Space Operations Squadron to focus on outer space. Space surveillance has become increasingly vital, as evidenced by foreign firms capturing real-time satellite images of a North Korean destroyer grounding during its launch ceremony. A model of the next-generation fighter jet being jointly developed by Japan, the UK, and Italy. (©Hidemitsu Kaito) The next-generation fighter jet under development, GCAP, mentioned by Ishiba, is expected to outperform the American stealth fighter F-35. However, as China and Russia rapidly expand their military power, Japan must further strengthen its defense capabilities. ( Read this in Japanese ) Author: Hidemitsu Kaito
Yahoo
27-05-2025
- Business
- Yahoo
Israeli defense firms lament a chill from erstwhile client Philippines
JERUSALEM — Israeli defense companies have begun questioning their government about a chill in relations with the Philippines, as officials in Manila appear to be turning away from a longtime supplier of defense equipment. The source of the bilateral freeze is murky, with some executives here blaming the Israeli government's unwillingness to back Filipino sovereignty claims in the South China Sea. The Israeli Ministry of Defense's mandate of prioritizing equipment deliveries to Israeli forces amid the Gaza war – at the expense of international customers – also is to blame, industry officials have said. 'The competitors are already aware and have begun to act on it,' one executive told Defense News, speaking on condition of anonymity while discussing the sensitive matter. Israeli companies were most recently observing the Manila chill during the DSEI Japan defense exhibition, which ran from May 21 to May 23, according to an Israeli industry insider who said Filipino representatives appeared interested in Japanese products instead. The Philippines is the third-largest defense buyer from Israel, accounting for about 8.1% of total exports after the United States (13%) and India (34%). That is according to the Stockholm International Peace Research Institute (SIPRI) report from last March. Defense purchases from Israel intensified during the period of Rodrigo Duterte as president of the Philippines. In his visit to Israel in September 2018 he said during a speech at a joint event with then-Israeli President Reuven Rivlin: 'I instructed my military personnel that in the field of military equipment and weapons, there is only one country to buy from, and that is Israel.' Among the Israeli defense systems purchased by the Philippines are the Spyder air defense systems from Rafael, Sabrah 2 light tanks from Elbit, Shaldag boats from Israel Shipyards, and Hermes-type drones. Israeli defense companies declined to comment on the record. The Israeli Foreign Ministry wrote in a statement that 'the issue is known and is in discussion with security officials and defense industries.' A ministry spokesperson denied that Israel's position on South China Sea claims is at the center of any disagreements. The Philippine Embassy in Tel Aviv did not return a request for comment by press time.
