Japan, US Plan Drone Alliance To Challenge China

Japan and the United States will set up a framework as early as this year to connect companies designing and manufacturing dual-use technologies, with an initial focus on producing drones in Japan to counter China, sources familiar with the matter said Sunday.

The two countries are considering producing in Japan drones developed by U.S. startups, with the plan expected to be unveiled in the coming months. The initiative is intended to challenge Chinese dominance in the global drone market and bolster supply chains for defense equipment, according to the sources.

Japan and the United States each have at least 50 companies involved in drone-related technologies. By linking them, the framework aims to make better use of their respective technologies, human resources and production bases.

The U.S. side is hoping to involve Japanese firms with advanced manufacturing capabilities such as Mitsubishi Heavy Industries Ltd. and seeking cooperation from the Japan Association of Corporate Executives, a major business lobby known as Keizai Doyukai.The envisaged initiative comes as Tokyo recently decided to scrap rules that limit defense equipment exports to five noncombat categories, allowing the export of lethal, locally made defense equipment to countries with whom it has defense cooperation.

The policy shift could encourage companies to expand personnel and facilities with an eye on overseas markets.

Japan’s defense industry is one of 17 sectors designated for priority investment by the government.Earlier this month, a government working group on defense industry strategy identified drones as a key capability supporting “new ways of warfare” and stressed the need to build a domestic base capable of rapid mass production.