Japan Opens Global Arms Market with Major Defence Export Rules Overhaul

Japan executed its biggest defence export policy shift on April 21, 2026, scrapping five restrictive categories to enable sales of warships, missiles, and lethal weapons to 17 partner countries including the US and UK, subject to approval. Prime Minister Sanae Takaichi, in office since October 2025, framed the change as vital amid China tensions and Japan's first combatant role in US-Philippine drills, while keeping conflict-zone sales bans with exceptions. Defence spending at 2% of GDP positions contractors for revenue growth, sparking potential Nikkei upside but Asian equity volatility and safe-haven flows.