Establishing Government-owned War Factory

Sanae Takaichi government is further accelerating the policy for economic growth through military businesses. It considers launching a new organization that encourages production of military equipment and promotes exporting weapons. Under the name of “strong and prosperous Japan,” the government looks like marching on a road toward merchant of death, as it once strode in pre-war era. 

The government releases Basic Policy on Economic and Fiscal Management, which is nicknamed as “Large-boned (Honebuto) Plan,” to navigate economic and fiscal policies with consultation to economic experts every July. It will be the first Honebuto Plan for Prime Minister Takaichi, who took the seat last October. Considering, to publicize a plan later this month. Considering Takaichi’s basic standpoint for economic growth through investment in crisis management, the experts are discussing introduction of public production of military equipment.

 

One of the options for reinforcing productivity of military equipment is to set up government-owned factories to produce military equipment for enhancing capability of war sustainability. The factory will be built by a public corporation newly established by the government and private companies will actually be running it. This is effectively a war plant in Japan, the country which is supposed to have renounced war to settle international conflicts.

 

The factory is supposed to produce ammunition and missiles. With lessons of contemporary warfare waged in Ukraine or Iran, Takaichi government is focusing on building military capability to maintain a war. Maintenance of war is a key concept for revision of three security documents, including National Security Strategy, which is scheduled later this year. Launching government-owned war factory is expected to be included in the revised security documents.

 

Building war factory also aimed at expanding Japanese businesses. Takaichi has been willing to achieve trade deals with like-minded countries, as seen in her talks over exporting Japanese destroyers with leaders of Australia or the Philippines in May. The system of exporting weapons with organized control of the government can be called Japanese version of foreign military sales (FMS).

 

Promotion of military factory is included in the agreement between the Liberal Democratic Party and Japan Innovation Party last October. It entails promotions of policies for “government owned, contractor operated (GOCO).” Takaichi administration removed five categories of regulation on transferring defense equipment. Although the regulation was set to implement Japan’s pacifism to take distance from participating in wars, which is based on requirement of the constitution, there is no discussion in the government or leading parties to refrain from deviation from the constitution.

 

Supposedly noticing Takaichi’s indifference to impact which Japan may have in security environment in Asian region, China has repeatedly expressed its concern on Japan’s “new militarism.” Takaichi government does not make clear how it can avoid arms race in Asia-Pacific region, while it is growingly engaged in war business. The government of Japan only reiterates its concern on “growingly severe security environment in Asia.” Japan’s unilateral build-up of defense capability is slowly raising tension in the region.