TOKYO (AP) — Japan on Tuesday scrapped a ban on lethal weapons exports, a major change in its postwar pacifist policy as the country seeks to build up its arms industry amid worries over Chinese and North Korean aggression.

The approval by Prime Minister Sanae Takaichi's Cabinet of the new guideline clears a final set of hurdles for many arms sales, including of Japanese-developed warships, combat drones and other weapons.

It has been largely welcomed by Japanese defense partners like Australia and attracted interest from Southeast Asia and Europe. U.S. Ambassador to Japan George Glass on X called the move a "historic step" that will help enhance the defense capabilities between the allies.

China criticized the change in policy. Chinese Foreign Ministry spokesperson Guo Jiakun said the global community including China will "resolutely resist Japan's reckless moves toward a new type of militarism."

Opponents at home also say the change violates Japan's pacifist constitution and will increase global tensions and threaten the safety of the Japanese people.

The new policy will "ensure safety for Japan and further contribute to the peace and stability in the region and the international society as the security environment around our country rapidly changes," Chief Cabinet Secretary Minoru Kihara told reporters. "The government will strategically promote defense equipment transfers to create a security environment that is desirable for Japan and to build up the industrial base that can support fighting resilience."

Japan could start selling weapons like missiles and destroyers

Japan has long prohibited most arms exports under its post-World War II pacifist constitution. It has made recent changes because of rising global and regional tensions, but exports were limited to five areas: rescue, transport, alerts, surveillance and minesweeping.

The new guidelines scrap those limits and allows the export of equipment such as fighter jets, missiles and destroyers. That's a major change from existing exports such as flak jackets, gas masks and civilian-use vehicles that Japan has sent to Ukraine and intelligence radars sold to the Philippines.

For now, such exports will be limited to 17 countries that have signed defense equipment and technology transfer agreements with Japan. They also must be approved by the National Security Council, and the government will monitor how the weapons are managed afterward.

Japan remains committed to strict screening and export controls to third countries and will not offer lethal weapons to countries at war, officials said, but granted that exceptions could be made to that limit.

Japan began to export some non-lethal military supplies in 2014, and in December 2023 it approved a change that would allow sales of dozens of lethal weapons and components that it manufactures under licenses from other countries back to the licensors, clearing the way for Japan to sell U.S.-designed Patriot missiles to America to make up for munitions that Washington sent to Ukraine.

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The 2023 revision also paved the way for Japan to jointly develop and sell a sixth-generation fighter jet with Britain and Italy, and for Japan's biggest arms deal ever, which was formalized last week with Australia. It calls for Japan to deliver the first three of a $6.5 billion fleet of Japanese-designed frigates for the Australian navy and jointly build eight others in that country.

Japan aims to build up its arms industry

Japan's domestic defense industry was long seen as a bad investment, limited to catering only to the Self-Defense Force and Defense Ministry. Dozens of former defense contractors have withdrawn from the market.

That is changing as Japan accelerates a buildup of its military and defense industry to play more offensive roles in the face of threats from China, North Korea and Russia.

The defense industry is one of 17 strategic areas targeted for growth under the Takaichi government. A growing number of major companies and startups are showing interest, especially in dual-use goods and drones.

The government also has increased funding for startups and academic research.

Officials say they believe Japan's new arms transfer rules would contribute to deepening of military and defense equipment cooperation with Japanese partners and to the regional deterrence.

"No country today can defend peace and safety by itself and needs partners to support each other," Takaichi said on X. "There is no change to our 80-year history as a pacifist nation and its pledge," she said, promising strict standards to its promotion of arms exports.

Outlook for potential customers

Australia on Saturday signed an agreement with Japan for delivery of three of Mitsubishi Heavy Industries' upgraded Mogami-class frigates and to jointly produce eight others. It welcomed Tokyo's new policy as a move to deepen their defense partnership.

New Zealand has also showed interest in the Japanese frigates. Several other countries have also expressed interest in Japanese defense equipment, including the Philippines, which is seeking to buy used destroyers, officials said.

Last week, a group of 30 NATO representatives visited Japan to discuss further deepening ties as the U.S. commitment to the military alliance has been shaken by U.S. President Donald Trump. They visited a subsidiary of Mitsubishi Electric Corp., which is part of the trilateral fighter jet project and also known for its satellite technology.