The security environment around Japan is becoming increasingly complex and uncertain. In response, Japan is working to build its defense capability across all domains of warfare, including space, cyberspace, and the electromagnetic spectrum. The aim is to develop the JSDF (Japan Self-Defense Force) into a more capable and flexible institution able to engage in a broader range of sustained defense-related activities.    

Japan has a substantial domestic defence industrial base with world leading technological capabilities within wider industry.  However, in recent years, the Japanese Ministry of Defence has bought increasing numbers of advanced defence systems from the US, increasing the proportion of systems purchased under the US Foreign Military Sales programs from just over 5% to around 25% of the equipment budget.  Japanese industry is not excluded from participation in these FMS programs, but their role is necessarily as part of the supply chain rather than in the lead.

There is a government led desire to build the domestic defence industrial base to make it internationally competitive and export capable.  The strategy to achieve this is not yet clear but at some stage it will increase the potential for overseas defence companies with world leading capability to build new partnerships with Japanese industry.