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Cuts to the defense budget since the end of the Cold War and low profit margins are some of the reasons why Japan's domestic manufacturers have pulled back from the production of military equipment.
Datawatch

Japan's defense industry on the ropes amid growing threats

Reliance on U.S. for equipment grows as more companies stop production

JUNNOSUKE KOBARA, KONATSU OCHI and NATSUMI KAWASAKI, Nikkei staff writers | Japan

TOKYO -- Amid increasing military threats from China and North Korea, Japan's defense industry has been shoved to the edge of the fighting arena because of domestic companies' withdrawal from the production of defense equipment.

Given the difficulty of developing fighter jets and other cutting-edge weapons by Japanese companies alone, Japan's reliance on the U.S. for equipment is further increasing, making it more important than before for the country to select and concentrate on proprietary defense technologies it should retain in the future.

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