Tokyo - Japan eased its weapons export restrictions on Tuesday in the first major overhaul of arms transfer policy in nearly half a century, as Prime Minister Shinzo Abe seeks to fortify ties with allies and bolster the domestic defence industry.
In a move which alarmed China, where bitter memories of Japan's past militarism run deep, the government decided to allow arms exports and participation in joint weapons development and production when they serve international peace and Japan's security.
That is a shift from a decades-old policy of banning all weapons exports in principle, although quite a few exceptions to the rule have been made over the years, such as the transfer of arms technology to the United States, Japan's closest ally.
"This is beneficial for Japanese companies in that they can take part in joint development and joint production and have access to cutting-edge technology," Takushoku University Professor Heigo Sato said.
"If you live in a closed market like the Japanese defence industry does, you clearly lag behind in technological development."
Development
But even under the new regime, Japan is to focus mainly on non-lethal defence gear such as patrol ships and mine detectors and says it has no plan to export such weapons as tanks and fighter jets.
The move comes when Sino-Japanese ties have been quite chilly due to a territorial dispute over a group of East China Sea islets and Abe's visit in December to Tokyo's Yasukuni Shrine, seen by critics as a symbol of Japan's wartime aggression.
"Japan's policy on military security concerns the region's stability. We pay great attention to this," Chinese Foreign Ministry spokesperson Hong Lei said at a daily news briefing.
"We request that the Japanese side learn lessons from history, earnestly respond to regional countries' strong concerns about the relevant issue ... and do more to benefit the region's peaceful development."
Engines
Japan's self-imposed restrictions on arms exports have virtually excluded defence contractors such as Mitsubishi Heavy Industries, Kawasaki Heavy Industries and IHI from the overseas market and made it difficult for them to cut costs and keep abreast of technological development.
Japan's defence budget slipped for a decade through 2012, raising concerns that some of the smaller and less diversified arms makers might be forced to go out of business.
The new export policy alone will unlikely help Japanese defence makers establish a big presence overseas, although some high-performance Japanese components, such diesel engines for ships, stand out among potential competitors.