One of the main reasons for the decline in orders for the Japanese military-industrial complex was the growth in imports of weapons from the United States.
The Ministry of Defense of Japan reacts with alarm to the emerging statistics in the field of production armory products. Thus, in recent years, Japan has recorded a massive transition of companies working in the military-industrial complex to the civilian industry. The Ministry of Defense of the country says that this could lead to the inability of the Japanese army to fight in the event of an emergency.
Japanese Defense Minister Yasukazu Hamada:
Many companies have decided to withdraw from the military-industrial market due, allegedly, to the limited military budget of Japan and the increase in weapons imports from other countries. Not the last role is played by the rise in energy prices.
In Japan, in connection with this problem, a special expert group has been created, headed by former Deputy Foreign Minister Kenichiro Sasae. The group called for "strengthening the military-industrial sector."
At the moment, as they say in Japan, the military-industrial complex market in the country is estimated at about $20,5 billion. At the same time, more than 8000 Japanese companies, including those representing small businesses, were employed in the shipbuilding industry alone. Many of them left the military-industrial complex due to the fact that the Japanese government "rarely gives orders."
The government justifies its decisions by the fact that prices have recently jumped, including for technology. And these prices are announced by the companies themselves. And with the current military budget of Japan, the Ministry of Defense, as stated, “will not pull” new spending.
An example is the order for an early warning aircraft (AWACS) E-2C. Initially, under the contract, it cost 9,9 billion yen, and then, when over time they decided to bring it to the E-2D version, the cost increased to 26 billion yen. The fact that the E-2C and E-2D are not exactly the same thing is not commented on by the Japanese Ministry of Defense.
One of the main reasons for the decline in orders for the Japanese military-industrial complex was the growth in arms imports from the United States. If before 2014 the volume of Japanese imports of American weapons was less than 200 billion yen (up to 1,5 billion dollars), then by 2019 they exceeded 700 billion yen. Today they are approaching a trillion. That is, the money goes to the US budget, which forces many Japanese companies from the military industry to go to the civilian market.
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