Japan passes defense subsidy bill to stop industry bleeding

Over 100 companies have left the sector in 20 years

20230607N Defense expo

An exhibit at this year's DSEI Japan defense show: Tokyo seeks to upgrade its defense capabilities, but its domestic industry is shrinking. © Reuters

YUSUKE TAKEUCHI, Nikkei staff writer

TOKYO -- Japan passed legislation Wednesday to support the production and export of defense equipment, in an effort to stop the erosion of a domestic industry that struggles to match Western firepower.

The law provides for subsidies for expanding production and improving efficiency, as well as to cover cybersecurity and business succession costs.

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