IHI, Mitsubishi Heavy to boost production as Japan eases arms export rules

Japan's cabinet has approved changes to the arms export control framework that previously limited sales of defence equipment to a narrow list of allied nations. Under the revised rules, Japanese defence manufacturers can now export a broader range of weapons systems and components, provided they meet strict end-use verification requirements. This marks a significant policy turn for a nation that has maintained pacifist principles in its postwar constitution.

IHI Corporation and Mitsubishi Heavy Industries, Japan's two largest defence contractors, have signalled plans to expand production capacity and pursue export markets in response to the regulatory opening. Both firms already supply the Japan Self-Defence Forces and are expected to target allied nations in the Indo-Pacific region, particularly those seeking alternatives to Western defence suppliers. The policy change also supports Japan's broader strategy to strengthen security partnerships amid China's military buildup.

Industry analysts expect the defence sector expansion to contribute meaningfully to Japan's industrial output and exports, particularly as geopolitical tensions in the Indo-Pacific remain elevated. However, the policy shift has drawn scrutiny from pacifist groups and neighbouring countries concerned about regional arms proliferation. The change underscores Japan's pivot toward a more active defence posture.