Japan Establishes Defense-Economy Complex

Sanae Takaichi government proposed establishment of new corporation which enhances defense industries. Prime Minister Takaichi has been asserting that she pursues economic growth by investment on security, including broader export of all kinds of weapons. It may cause a major concern that the corporation will play a role of a military-industrial complex in Japan. 

The idea of establishing new corporation was proposed by the government to a meeting of experts for discussing defense from the viewpoint of enhancing national power. The corporation is expected to energize studying defense issues, secure supply chain for future procurement and enhance stable and sustainable defense capabilities. It believes that the corporation will contribute to the reform of defense capability of Japan in the time new technologies, including artificial intelligence or drones, are deployed in the frontline of actual battlefield.

 

This effort for defense reform is based on a notion that defense capability is supported by economic growth. “Enhancement of defense capability cannot be achieved without strength of Japanese economy,” says the report which was submitted to the experts’ meeting. It promotes “positive cycle of defense and economy” to reform defense industry for achieving sustainable capability of response.

 

Takaichi government is going to revise three defense documents -- National Security Strategy, National Defense Strategy and Defense Buildup Program – by the end of 2026. The government discusses how to improve capability for new type of warfare, introduction of nuclear-powered submarines and maintenance or revision of “three non-nuclear principles.”

 

In the context of reforming defense capability, Takaichi government is going to formulate “defense industrial basis strategy” to encourage investment in defense industry. The new corporation will be placed at the center of “defense industry eco-system.” The system includes non-defense industries, startups, universities and monetary institutions, in addition to traditional defense industries. The industry is expected to promote not only building domestic industrial basis, but also export of defense equipment. Japan has removed five categories of restriction of exporting defense equipment in April 2026.

 

Receiving the report, the experts in the meeting did not raise a skepticism to exploration of stronger defense capability, as far as reported. One of them argued that the reform of defense capability would be supported by the people, if it contributes economic growth. It is possible that the government selected the member who would not protest defense policies of Takaichi government.

 

It gradually becomes difficult for Japan to define itself a peace-loving country, as it promotes policies to enhance capability for waging an actual war. Connection between governmental authorities of defense and economy reminds of “national mobilization regime,” which devoted all the capabilities to an all-out war at the time of the World War II. Economic growth through military investment is nothing but a concept of war-waging regime.

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