Japan passes law to nationalize defense equipment manufacturing facilities

(HNMO) - Yesterday, June 7, the Japanese National Assembly enacted a law on nationalizing defense equipment manufacturing facilities, thereby creating a system of acquisition or outsourcing to support struggling defense manufacturing companies.

New legislation aimed at supporting the defense industry by strengthening its production and product development foundations has been passed by a majority vote in Japan's two-house assembly.

Accordingly, if companies have difficulty maintaining defense-related production activities, the state will purchase related factories and facilities to produce equipment deemed indispensable to the Japan Self-Defense Forces (JSDF) or outsource the production process to outside companies.

Japan's parliament passes law to nationalize defense equipment manufacturing facilities. Photo: Kyodo

Through the new system, Japan hopes to reduce the initial investment burden on companies tasked with taking over defense equipment production operations, thereby aiming to maintain the country's defense equipment development and production facilities.

In the revised National Security Strategy announced in December 2022, the Japanese government emphasized the importance of strengthening defense equipment production and technology facilities, and assessed these facilities as representing “national defense capabilities.”

Under the law, the government will provide direct financial support to companies that are working to diversify supply chains, streamline production processes, strengthen cybersecurity and transition their businesses.

Japan will also set up a fund to subsidize the costs of changing the specifications and performance of defense equipment to promote exports to other countries.

The new law also addresses information security. Information on defense equipment provided by the Ministry of Defense is considered confidential. Company employees or others who leak the information face up to one year in prison or a fine of up to 500,000 yen.

Companies will also be required to respond to surveys by the Ministry of Defence so that the government can get a complete picture of the defence equipment supply chain.

Source: https://beta.hanoimoi.com.vn/nhat-ban-thong-qua-luat-quoc-huu-hoa-co-so-san-xuat-trang-thiet-bi-quoc-phong-444860.html