The resurgence of Japanese arms firms

By Zhang Lulu
0 Comment(s)Print E-mail China.org.cn, April 17, 2014
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 Japanese military manufacturers may find themselves with a lot of opportunities as Abe's government passed the Three Principles on Transfer of Defense Equipment and Technology on April 1, which virtually lifted the ban on Japan's weapons exports.

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Japanese Prime Minister Shinzo Abe sits in Japanese Self-Defense Force training jet on May 12, 2013. He aims to sell Japanese military products during his foreign visits. [File photo] 



As the development of military equipment in Japan and the prospects for its exports looks more promising than ever, the country's pacifist constitution is jeopardized and security in the conflict-ridden Asia Pacific region will face greater challenges.

Lifting of weapons export ban

The cabinet of Shinzo Abe passed the new three principles on weapons exports on April 1, virtually lifting the ban, which had lasting for nearly half a century. The move is set to boost Japanese military enterprises which have been hidden in civilian industries for years.

Mitsubishi Heavy Industries, Japan's largest defense industry enterprise, announced in a statement issued only one day after the introduction of the new principles, saying the move signifies the Japanese government's recognition of the need to beef up defense production and technology research. The firm also vowed to abide by the new principles and the government's supervision of military exports and requirements on the participation of military enterprises in international military production and research.

Japan passed the three principles on weapons exports in 1967, banning arms exports to communist countries, countries under UN arms embargoes and countries involved in or which might become involved in international conflicts. The ban was tightened in 1976, practically prohibiting Japan from exporting its arms. But as the Abe administration passed the new three principles, the old principles were disregarded.

Abe visited 15 countries from April 2013 to January 2014, bringing with him 32 domestic military manufacturers. With defense exchanges on the agenda for each visit, Abe aimed to sell Japanese weapons and boost Japan's military firms.

Japan may grow into a large global weapons powerhouse after the adoption of the new principles. It will then aggravate the conflicts and the arms race in the Asia Pacific region, which is already very intense. The Japanese government under Abe has demonstrated again its role as a troublemaker in the region.

Leading products and staggering prices

According to Wen Bing, deputy director of the National Defense Policy Research Center at China's PLA Academy of Military Science, Japanese military enterprises boast strong research and production capability of ships, tanks, cannons and missiles. Japanese electrical technology even outperforms the United States and Europe.

Its most advanced Sōryū-class submarines (16SS) are comparable to German submersibles in terms of design, air-independent propulsion, and electrical and arms equipment. They have even better power and combat capability.

For the time being, Japan's military exports will focus on non-lethal defense equipment such as patrol vessels and minesweeping devices, but in the long run, tanks, jet fighters, and submersibles will become Japan's leading products.

Japan's arms come at heavy prices though. For instance, the Japanese Self-Defense Force purchased 14 Type-10 tanks in 2013, each at a cost of nearly US$10 million, much higher than those from the United States and Russia. A Japanese conventional submersible costs US$527 million, higher than Germany's most advanced Type 214 submarine (US$500 million), which includes after-sales service and maintenance expenses.  

The skyrocketing prices stem from the small number of products as Japan's own demand is restricted by its post-war constitution. But once Japan is entitled to large-scale arm exports, the cost will be largely reduced. A defense official said Japan may offer discounts to promote its military sales.

Eyes on potential clients

Japan is keen to sell arms to Australia, the Philippines, Vietnam and other Southeast Asian countries.   The day when the new three principles were passed, Japan decided to hold an inter-governmental talk with India in early April, discussing the export of the amphibious aircraft US-2 to India. The two countries reached an agreement in January that India would purchase at least 15 US-2 for US$1.65 billion from Japan.

In addition to India, Japan is also eyeing Australia as a primary client. Australia is reportedly interested in Japan's Sōryū-class submarines, which Japan is not selling at present due to the cutting-edge nature of the technology. But during Australian Prime Minster Tony Abbott's visit to Japan this April, the two nations reached consensus on joint arms research. The two may even jointly conduct research and production on new type submarines in future.

Japan may also provide military assistance to Southeast Asian nations. It already promised to provide the Philippines with civilian patrol vessels, and it will also be enabled to export arms to Vietnam and Indonesia.

Japan Ministry of Defense submitted a proposal to the government on April 1, trying to build an F-35 fighter maintenance center in the country. Japanese military enterprises may reap considerable profits by participating in the research and maintenance work of the fighter, and also build up its own research and development capability.

Military firms masked as civilian enterprises

Technically, Japan does not have any state-run munitions factories, but there are more than 2,500 enterprises involved in military production, seven of which are on the list of the world's 100 leading military firms.

Japan was restricted from developing its military prowess after its defeat in World War II, but private-owned military enterprises were set up with government support.

According to Wen Bing, the Japanese government has constantly provided policy, financial and technological support to domestic military enterprises. Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Fuji Heavy Industries, Hitachi, Nissan, Panasonic and other well-known enterprises produced weapons during the war, and maintained their legacy and ambition after the war.

For instance, Mitsubishi Heavy Industries produced nearly half of Japan's submarines and one third of its destroyers. The firm is core to Japan's aviation and land defense forces.

As the ban is lifted, Japanese weapons manufacturers like Mitsubishi Heavy Industries will witness an unprecedented resurgence.

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