Japan is rapidly stepping into the international defense market, advancing arms exports once thought politically unthinkable.
In recent months, Tokyo has agreed to provide six warships to the Philippines and secured a major contract with Australia for the joint development of a new class of frigates based on Japan’s cutting-edge Mogami-class design.
For decades, Japan strictly prohibited arms exports under the “Three Principles on Arms Exports,” first declared by Prime Minister Eisaku Sato in 1967. That framework effectively banned the sale of lethal equipment abroad. The restrictions were loosened in 2014 under Prime Minister Shinzo Abe, when Tokyo replaced the rules with the “Three Principles on Transfer of Defense Equipment,” allowing for broader international collaboration and co-development.
The latest decisions reflect how far Japan has moved from its postwar limitations. For the first time, the country will provide escort vessels—classified as destroyer escorts but equipped to the level of small frigates or destroyers—to another nation.
According to reports, Manila will receive six Abukuma-class vessels retired from the Japanese Maritime Self-Defense Force. Although compact and lacking helicopter hangars, the ships are fitted with Harpoon anti-ship missiles, ASROC anti-submarine rockets, a 76 mm rapid-fire gun, and torpedo tubes. Defense photojournalist Tetsuya Kakidani noted that despite their age, the Abukuma-class is well maintained.
“It is a bargain for the Philippines,” he said, given that the country will cover only inspection and refit costs of about 10 billion yen.
To navigate Japan’s legal restrictions, Tokyo will strip the vessels of their original weaponry and refit them with communications equipment and other Philippine-specific systems. Officials argue that such modifications allow the arrangement to be categorized as a “co-development” project rather than a direct export of armed ships.
At the same time, Canberra has chosen Japan as its partner for a next-generation frigate program. Australia announced it would adopt Mitsubishi Heavy Industries’ Mogami-class multi-mission frigate as the base design. Each ship carries an estimated cost of 86.3 billion yen, with the entire project totaling nearly 950 billion yen.
Japan’s proposal triumphed over competitors from Germany, South Korea, and Spain. Analysts said Tokyo’s edge came from the ship’s reduced crew requirements, advanced stealth features, and 32 missile launch cells—capabilities that appealed to the Royal Australian Navy as it struggles with manpower shortages and the need to replace aging vessels.
Unlike the Philippine deal, the Australian program falls under co-development rules, allowing Tokyo to deliver the vessels fully armed. The first contract is expected to be signed early next year, with deliveries projected to begin in 2029.
The moves echo South Korea’s rapid ascent in the global arms industry. Over the past decade, Seoul’s defense exports surged from around $3 billion annually to more than $17 billion by 2022, with contracts for howitzers, tanks, aircraft, and rocket systems. By comparison, Japan is only beginning its expansion, but its industrial capacity and advanced shipbuilding sector position it to compete.
Japan’s shipbuilding industry recently consolidated, with Imabari Shipbuilding acquiring Japan Marine United. The merger created the world’s fourth-largest builder by tonnage, strengthening Japan’s ability to support naval programs for the United States and allied partners. Analysts note that U.S. naval maintenance work is already being outsourced to Japanese yards due to labor shortages in America.
Still, challenges remain. Retired Ground Self-Defense Force Lt. Gen. Ryu Futami has argued that Japan should focus on specialized non-lethal military vehicles for export, using modifications that qualify as co-development. Likewise, defense consultant Shoichi Suyama has warned that Japan lacks a system comparable to America’s Foreign Military Sales framework, which guarantees long-term maintenance and logistics. Without government support, Japanese firms must assume responsibility for after-sales service, a burden that could limit competitiveness.
Despite those obstacles, Japan’s defense industry is gaining momentum. By securing contracts with both the Philippines and Australia, Tokyo has crossed a threshold in arms exports that would have been inconceivable only a decade ago. Analysts say the shift reflects not only changing legal interpretations but also growing demand among allies for reliable alternatives to Chinese and Russian equipment.