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Japan struggles to persuade its big brands to join military build-up

By Tim Kelly and Kaori Kaneko

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The companies are worry about potential damage to their public image from arm sales.

Only in Japan that could happen.

Hats off.

2 ( +11 / -9 )

Give a man a hammer, and everything looks like a nail. The same goes for military buildup.

In any case, it won't matter what the big brands think, once we enter martial law, will it?

-4 ( +7 / -11 )

As Tokyo spins up its defense industry for the country's largest military expansion since World War II

This is one of the most terrifying ways to begin an article, but it does only describe where we are right now.

8 ( +12 / -4 )

Market is limited, regulated and it will cost some RnD and testing before it can really show up profit, unless government willing to spend some money using tax payer money for those company.

-3 ( +2 / -5 )

The key to any defence industry is government-issued "cost-plus" contracts, where the government will reimburse the company for whatever it spends to make the product, PLUS a guaranteed profit. There is no downside - only upside - and these Japanese companies only need to look at the USA defence companies and see how it is done extremely lucratively. And the companies costs are usually significantly padded with extensive cost overruns and needless redundant and featherbedding processes, so there is plenty of sugar baked into the cake from the get-go.

5 ( +7 / -2 )

War is a racket. (Smedley Butler).

10 ( +12 / -2 )

The spirit of Mitsubishi Zero needs to be reawakened.

the financial risk of building manufacturing plants that could be left idle after Japan completes its military expansion

The companies can sell their arms abroad to friendly countries if that is the concern.

-9 ( +1 / -10 )

Then give all those firms an ultimatum, make more arms or Japan will buy them on the open market and cancel all domestic contracts..... There are International Defense/Armament Trade shows every year.....

-8 ( +2 / -10 )

Much of the increased defense budget will be used for purchasing secondhand US weapons. Who in their right mind in Japan would want to take risks and invest in weapons manufacturing?

2 ( +4 / -2 )

We have witnessed the end of an era, when one of the world’s top economies could exist in peace without an offensive military. But I can sympathize with Japan’s change of heart, it seems American political and military muscle have steeply declined. Leadership in Europe has fallen nearly as hard. The American withdrawal from Afghanistan showed shockingly poor planning, and even worse execution, and adding to that the lack of common-sense leadership in Europe has emboldened Russia and China. If I were Japan, I wouldn’t put much faith in America’s multi willpower and ability.

-1 ( +3 / -4 )

""Japan, which renounced war in 1947, last year unveiled a five-year 40 trillion yen military expansion to deter Beijing from using force in the East China Sea""

China will NOT use force, if anyone China will be the last to use force. I believe that China will use it's mighty $$$$$$$$ money to accomplish it's mission, assuming that it still wants to!!???

-2 ( +3 / -5 )

China will sanction the business of these companies and corporations who participated in Japan's military expansions. You see Boeing received "0" order of airliner from Chinese airline companies.

6 ( +7 / -1 )

Japan struggles to persuade its big brands to join military build-up

Both Mitsubishi Electric Corp and Daikin Industries Ltd, have a commercial obligation/return dividend to shareholders.

The lack of a compressive policy on tax and earnings has now become a political issue

The question, the depopulation, the cost of child care, past present and future is now front centre.

Who pays

0 ( +2 / -2 )

No military expansion. Is a waste of money and only create a arm race with other countries. The GSDF is fine as it is. Just focus on their training, better pay and welfare. Let's be realistic. North Korea doesn't really bother us and only cares about South Korea and the US troops at their doorstep. Russia has bigger problems with the EU. While China is our neighbor and also the highest number of visitors every year( almost 10million each year). Our government should just stay away from US politics. Don't we already waste enough money buying their overpriced weapons and also covering the cost of their troops living here?

6 ( +9 / -3 )

it seems American political and military muscle have steeply declined. Leadership in Europe has fallen nearly as hard. The American withdrawal from Afghanistan showed shockingly poor planning, and even worse execution

Here is evidence of America’s decline to me. Even when Taiwan and Japan sign on to purchase arms from the U.S., the U.S. can’t “deliver” its promises.

About a decade ago, Japan bought two RQ-4 UAVs from the United States and signed a contract nine years ago. It cost 61.3 billion yen when it was purchased.

In nine years, the United States has never delivered the goods.

In nine years, the United States has asked Japan to pay an additional 295.1 billion yen for the maintenance of unmanned aerial vehicles that Japan has never received. So Japan purchased unmanned aerial vehicles for roughly 60 billion yen but is asked to pay roughly 300 billion yen in maintenance fees. At least they have something to counter the rise of China military right?

Nine years later, the Japanese still haven't got any of their UAV.

To add further insult to injury, two years ago, the United States Air Force cited the unmanned reconnaissance aircraft type in the contract signed by Japan as being "unable to cope with China” and required Japan to "retire" all 20 drones.

The U.S. government is beyond unorganized because the country is in decline. An enormous amount of energy is exhausted in partisan politics and elections, that things don’t get done and promises aren’t kept. Such low standards are not American standards.

Wait and see if Taiwan receives the goods they have also already paid for but have not yet received. The same with the subs Australia is buying 2030 and the Tomahawk missiles 2026.


1 ( +3 / -2 )

Tools, gotta have them wether you're building a home or in defense protecting it from oppressors like the Chinese Communist Party. So unless those businesses start caring about the freedoms they have in a manner similar to their profits they will risk losing both.

Just my thoughts.


2 ( +3 / -1 )

No reason they shouldn't require their investment to be underwritten by government money. They know that the contracts will switch to the US if the US demand it, and want to protect their companies.

The US will eventually sanction anyone that so much as buys a spanner from China and ban sales to them. At that point, they may have to make bombs and bullets for WWIII if they want to make a profit.

As for reputational issues, no self-respecting Islamic State fighter would want to have driven anything other than a Toyota. It was so common that there was an inquiry into the supply chain.

The Japanese government may have their own quiet agenda in this. The US promise to protect Japan. But they promised to protect the Kurds and the Afghans too. Trust in the US can only go so far.

-1 ( +1 / -2 )

Militarize Japan and bleed it broke while the American war industry hauls in the profits.

-2 ( +1 / -3 )

It's the lack of profit that's driving away Japanese defense contractors away.

Not only Japanese MoD issue defense orders each year instead of over several years, the amount that Japanese MoD actually spends on weapons procurement is small, 1/3rd that of Korea. Worse, while the majority of Korean spending goes to buy world renowned Korean weapons, the majority of Japanese spending goes to buying US FMS weapons, leaving a pocket change for Japanese defense contractors.

Given the small amount plus the uncertainty of annual contracts, it is of no wonder Japanese companies are quitting defense business, while defense industry is a massively booming business in Korea where even ammunition vendors are setting up factories in Europe to supply Ukraine and NATO countries demanding Korean ammunitions, rockets, and artillery shells.

It's the classic case of rich getting richer and poor getting poorer.

Unless Japanese MoD goes crazy and announces an all out arms-rebuilding program with all-Japan stealth fighter(not the UK Tempest where Japan is a subcontractor), aircraft carriers(Korea is building two 70K ton carriers loaded with KF-21N domestic naval fighters), 3,000 tanks(MoD plans to keep 300 tanks), 1,000 HIMARS like rocket launchers, Japanese defense industry can't survive.

-5 ( +0 / -5 )

Tokyo would be destroyed in 5 minutes of a all out war with it neighbors,it will be a shell of itself,with million of it people suffering unnecessary, because of a paper tiger policy of Japan

-4 ( +1 / -5 )

Daikin. It was only when I was working for them that I became aware they did military weapons production as well. I was a little surprised.

1 ( +1 / -0 )

It seems to me that the rise of the dictatorships is driving the threat from military aggression. It is unfortunate that spending money on defense is necessary, but the alternative is to consign unprepared nations to slavery.

0 ( +0 / -0 )

@Sal Affist

There is no downside - only upside - and these Japanese companies only need to look at the USA defence companies and see how it is done extremely lucratively.

Not necessarily, not all country have ability to do the same. Japan just don't have showcase where it can exhibit military product. What happened in Japan, it just becoming another scandal.



Japan even try to avoid big bet


-4 ( +0 / -4 )

People and countries who are smart avoid foreign conflicts and domestic entanglements that do not truly benefit them in the long run. If Japan's leadership and voters are smart, they will go ahead with expanding conventional military forces, but will couple that with an expansion of their chemical weapons stockpile, and the creation of a large nuclear deterrent capability. Russia, China and North Korea have hypersonic nuclear missiles. Anyone at odds with them is not in any kind of advantageous military position without having the same, or something close to the equivalence in power.

0 ( +0 / -0 )

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